Ch3, Exer. G., p.

78
AJE:
Debit Credit Type of Adjusment
1.) Impairment Loss 1,200 Bad Debts
Allowance for Impairment 1,200

2.) Unused Supplies Prepaid Expense under Expense

Supplies Expense

3.) Depreciation 1,200 Depreciation

Acc. Depreciation 1,200

4.) Accrued Interest Income 250 Accrued Income

Interest Income 250

5.) Interest Expense 250 Accrued Expense

Accrued Interest Expense 250

6.) Prepaid Expense 4,000 Prepaid Expense under Expense method

Advertising Expense 1,500
Rent Expense 2,500

7.) Rent Income 2,500 Unearned Income under Income method

Repair Income 1,500
Unearned Income 4,000

8.) Salaries Expense 2,500 Accrued Expense

Insurance Expense 1,500
Accrued Expense 4,000

H.
1.) Accounts Receivable 5,200 Accrued Income
Laundry Income 5,200

2.) Bad Debts 560 Bad Debts

Allowance for Bad Debts 560

3.) Depreciation Expense 12,000 Depreciation

Accumulated Depreciation 12,000

4.) Rental Income 2,000 Unearned Income under Revenue method

Unearned Rent 2,000

5.) Salaries Expense 8,000 Accrued Expense

Salaries Payable 8,000
6.) Prepaid Rent 68,000 Prepaid Expense under Expense method
Rent Expense 68,000

7.) Interest Receivable 1,080 Accrued Income

Interest Income 1,080

8.) Interest Expense 1,080 Accrued Expense

Interest Payable 1,080
Ch. 4, Exercise C, p. 109:
Malabo Photo Copying Center
10-Column Worksheet
For the year ended Dec. 31, 200E

Unadjusted Trial Balance Adjustments Adjusted Trial Balance

Debit Credit Debit Credit Debit

Cash 37,500 37,500
Accts. Receivable 28,000 28,000
Notes Receivable 1,000 1,000
Furniture & Fixture 34,500 34,500
Photocopying Equip. 220,000 220,000
Accounts Payable 26,500
Loan Payable 58,000
Note Payable 3,000
Bugoy, Capital 200,000
Bugoy, Drawing 5,000 5,000
Service Income 150,000
Rental Income 8,000 8.) 1,000
Salaries Expense 32,000 32,000
Supplies Expense 60,000 4.) 12,400 47,600
Utilities Expense 10,000 10,000
Advertising Expense 15,500 7.) 1,500 14,000
Miscellaneous Expense 2,000 2,000
445,500 445,500
Impairment Loss 1.) 500 500
Allowance for Impairment Loss 1.) 500
Depreciation - F & F 2.) 1,200 1,200
Acc. Depreciation - F & F 2.) 1,200
Depreciation -Photo. Eq. 3.) 22,000 22,000
Acc. Depreciation- Photo. Eq. 3.) 22,000
Supplies 4.) 12,400 12,400
Interest Receivable 5.) 20 20
Interest Income 5.) 20
Interest Expense 6.) 80 80
Interest Payable 6.) 80
Prepaid Advertising 7.) 1,500 1,500
Unearned Rental Income 8.) 1,000
38,700 38,700 469,300
NET INCOME

Malabo Photo Copying Center Malabo Photo Copying Center

Income Statement Statement of Changes in Owner's Equity
For the year ended Dec. 31, 200E For the year ended Dec. 31, 200E

Service Income 150,000 Bugoy, Capital, Jan. 1

Rental Income 7,000 Add: Net Income
Interest Income 20 Total
Total Revenue 157,020 Less: Bugoy, Drawing
Less: Expenses Bugoy, Capital, Dec. 31
Salaries Expense 32,000
Supplies Expense 47,600
Utilities Expense 10,000
Advertising Expense 14,000
Impairment Loss 500
Depreciation - F & F 1,200
Depreciation -Photo. Eq. 22,000
Interest Expense 80
Miscellaneous Expense 2,000 129,380
Net Income 27,640

Malabo Photo Copying Center

Post-Closing Trial Balance
as of Dec. 31, 200E

Debit Credit
Cash 37,500
Accts. Receivable 28,000 Reversing Entries - are done o
Allow. for Impairment Loss 500 1.) Prepaid Expenses - under E
Notes Receivable 1,000 2.) Unearned Income - under
Interest Receivable 20 3.) Accrued Expense
Prepaid Advertising 1,500 4.) Accrued Income
Supplies 12,400
Furniture & Fixture 34,500
Acc. Depn - F & F 1,200
Photocopying Equip. 220,000
Acc. Depn - P.E 22,000
Accounts Payable 26,500
Note Payable 3,000
Interest Payable 80
Unearned Rental Income 1,000
Loan Payable 58,000
Bugoy, Capital 222,640
334,920 334,920
nter

200E

Adjusting Entries
Adjusted Trial Balance Income Statement Statement of Fin. Position

C.1.
Credit Debit Credit Debit
37,500 1.)
28,000
1,000
34,500 2.)
220,000
26,500
58,000 3.)
3,000
200,000
5,000 4.)
150,000 150,000
7,000 7,000
32,000 5.)
47,600
10,000
14,000 6.)
2,000

500 7.)
500
1,200
1,200 8.)
22,000
22,000
12,400
20
20 20
80
80
1,500
1,000
469,300 129,380 157,020 339,920
27,640
157,020 157,020 339,920

Malabo Photo Copying Center

s in Owner's Equity Statement of Financial Position
ec. 31, 200E as of Dec. 31, 200E

200,000 ASSETS Note

27,640 Current Assets
227,640 Cash 37,500
5,000 Trade & Other R 1 28,520
222,640 Prepaid Expense 2 13,900 79,920

Non-Current Assets
Property, Plant 3 231,300
TOTAL ASSETS 311,220

LIABILITIES AND OWNER'S EQUITY

Current Liabilities
Trade & Other P 4 30,580

Non-Current Liabilities
Loan Payable 58,000
Total Liabilities 88,580

Bugoy, Capital, Dec. 31 222,640

TOTAL LIAB. & OWNER'S EQUITY 311,220

ersing Entries - are done only for the ff. selected adjustments:
repaid Expenses - under Expense Method
Unearned Income - under Income Method
Accrued Expense
Accrued Income
Adjusting Entries Closing Entries

Dec. 31, 200E December 31, 200E:

Impairment Loss 500 1.) Service Income

Allowance for Impairment Loss 500 Rental Income
Interest Income
Depreciation 1,200 Income & Expense Summ
Acc. Depreciation- F & F 1,200
2.) Income & Expense Summary
Depreciation 22,000 Salaries Expense
Acc. Depreciation- Photo. Eq. 22,000 Supplies Expense
Utilities Expense
Supplies 12,400 Advertising Expense
Supplies Expense 12,400 Impairment Loss
Depreciation - F & F
Interest Receivable 20 Depreciation -Photo. Eq.
Interest Income 20 Interest Expense
Miscellaneous Expense
Interest Expense 80
Interest Payable 80 3.) Income & Expense Summary
Bugoy, Capital
Prepaid Advertising 1,500
Advertising Expense 1,500 4.) Bugoy, Capital
Bugoy, Drawing
Rental Income 1,000
Unearned Rental Income 1,000
Note 1:
Accts. Receivable 28,000
Less: Allow. for Impairment Loss 500 27,500
Notes Receivable 1,000
Interest Receivable 20
28,520
Note 2
Prepaid Advertising 1,500
Supplies 12,400
13,900
Note 3:
Furniture & Fixture 34,500
Less: Acc. Depn - F & F 1,200 33,300
Photocopying Equip. 220,000
Less: Acc. Depn - P.E 22,000 198,000
231,300
Note 4:
Accounts Payable 26,500
Note Payable 3,000
Interest Payable 80
Unearned Rental Income 1,000
30,580
 150,000 OR Service Income 150,000
7,000 Rental Income 7,000
20 Interest Income 20
ncome & Expense Summary 157,020 Salaries Expense
Supplies Expense
pense Summary 129,380 Utilities Expense
Salaries Expense 32,000 Advertising Expense
Supplies Expense 47,600 Impairment Loss
Utilities Expense 10,000 Depreciation - F & F
Advertising Expense 14,000 Depreciation -Photo. Eq.
mpairment Loss 500 Interest Expense
Depreciation - F & F 1,200 Miscellaneous Expense
Depreciation -Photo. Eq. 22,000 Income & Expense Summary
nterest Expense 80
Miscellaneous Expense 2,000

pense Summary 27,640 Income & Expense Summary 27,640

Bugoy, Capital 27,640 Bugoy, Capital

5,000
Bugoy, Drawing 5,000
 Reversing Entries as of Jan. 1, 200F:

1.) Supplies Expense 12,400

Supplies 12,400

32,000 2.) Interest Income 20

47,600 Interest Receivable 20
10,000
14,000 3.) Interest Payable 80
500 Interest Expense 80
1,200
22,000 4.) Advertising Expense 1,500
80 Prepaid Advertising 1,500
2,000
27,640 5.) Unearned Rental Income 1,000
Rental Income 1,000

27,640