Problem 4-5 (1}

Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash at Bank 4900 4900 4900
Accounts Receivable 15,310 15,310 - 15,310
Prepaid Rent 2,200 (b) 200 2,000 2,000
Supplies 840 (c) 770 70 70
Equipment 31,370 31,370 31,370
Accumulated Depreciation 3400 (d) 250 3650 3650
Accounts Payable 7,290 7,290 7,290
Salary Payable (e) 310 310 310
Unearned Service Revenue 5,300 (a) 4,500 800 800
Courtney Rolfe, capital 28,290 28,290 28,290
Courtney Rolfe, drawings 3,900 3,900 3,900
Service revenue 17,100 (a) 4,500 21,600 21,600
Salary expense 2,860 (e) 310 3,170 3,170
Rent expense (b) 200 200 200
Depreciation expense (d) 250 250 250
Supplies Expense (c) 770 770 770
Total 61,380 $ 61,380 $ 6,030 $ 6,030 $ 60,920 $ 61,940 $ 4,390 21,600 57,550 40,340
Profit 17,210 17,210
Total 21,600 $ 21,600 $ 57,550 $ 57,550 $
Adjusted Trial
Balance
Income
Statement
Balance Sheet
Balance
Alpha Graphics
Work Sheet
For the month ended 31 October 20X1
Trial Adjustments
Date Description Debit Credit Balance Dr/Cr
31-Oct Balance 4900 4900 Dr
31-Oct Balance 15310 15310 Dr
1-Oct Balance 2200 2200
31-Oct Adjastment 200 2000 Dr
1-Oct Balance 840
31-Oct Adjastment 770 70 Dr
1-Oct Balance 31370 31370 Dr
1-Oct Balance 3400
31-Oct Adjastment 250 3650 Cr
31-Oct Balance 7290 7290 Cr
1-Oct Balance 0
31-Oct Adjastment 310 310 Cr
1-Oct Balance 5300 5300 Cr
31-Oct Adjastment 4500 800 Cr
Date Details Debit Credit Balance
1-Oct Balance 28290 28290 Cr
31-Oct Closing Entry 17210 45500 Cr
Accounts Payable
Salary Payable
Unearned Service Revenue
Problem 4-5 (2}
Supplies
Trial Balance
Alpha Graphics
Courney Rolfe, Capital
Equipment
Accumulated Depreciation
Cash at Bank
Accounts Receivable
Prepaid Rent
31-Oct Closing Entry 3900 41600 Cr
31-Oct Balance 3900 3900 Dr
31-Oct Closing Entry 3900 0
31-Oct Balance 17100 17100 Cr
31-Oct Adjastment 4500 21600 Cr
31-Oct Closing Entry 21600 0
31-Oct Balance 2860
31-Oct Adjastment 310 3170 Dr
31-Oct Closing Entry 3170 0
31-Oct Balance 0
31-Oct Adjastment 200 200 Dr
31-Oct Closing Entry 200 0
31-Oct Balance 0
31-Oct Adjastment 250 250 Dr
31-Oct Closing Entry 250 0
31-Oct Balance 0
31-Oct Adjastment 770 770 Dr
31-Oct Closing Entry 770 0
Depreciation Expense
Supplies Expense
Salary Expense
Rent Expense
Courney Rolfe, Drawings
Service Revenue
Problem 4-5 (3}
Revenue:
Service Revenue 21600
Expenses:
Salary exp 3170
Rent exp 200
Depreciation exp 250
Supplies Exp 770
Total expenses 4390
Net Profit 17210
Courtney Rolfe, capital, 1 October 20X1 28290
Add: Net Profit 17,210
45,500
Less: Drawings 3,900
Courtney Rolfe, capital, 31 October 20X1 41600
Alpha Graphics
Income Statement
Alpha Graphics
Statement of Changes in Owner's Equity
Assets:
Current Assets
Cash at Bank 4900
Accounts Receivable 15,310
Prepaid Rent 2,000
Supplies 70
Total Current Assets 22,280
Non-Current Assets
Equipment 31,370
Less: Accumulated Depreciation (3,650) 27,720
Total Assets: 50000
Liabilities:
Current Liabilities
Accounts Payable 7,290
Salary Payable 310
Unearned Service Revenue 800
Total Current Liabilities 8400
Net Assets: 37300
Owner's Equity:
Capital 41,600
Total Owner's Equity: 41600
Alpha Graphics
Balance Sheet
31 October, 20X1
Adjasting Entries
Date Particulars Debit Credit
October, 20X1
31 Unearned Service Revenue 4,500
Service Revenue 4,500
31 Rent Exp 200
Prepaid Rent 200
31 Supplies Exp 770
Supplies 770
31 Depreciation Exp 250
Accumulated Depreciation 250
31 Salary Exp 310
Salary Payable 310
Alpha Graphics
Closing Entries
Date Particulars Debit Credit
October, 20X1
31 Sevice Revenues 21,600
Income Summary 21,600
31 Income Summary 4,390
Salary Exp 3,170
Rent Exp 200
Depreciation Exp 250
Supplies Exp 770
31 Income Summary 17,210
Courtney Rolfe, Capital 17,210
31 Courney Rolfe, Capital 3,900
Courtney Rolfe, Drawings 3,900
Alpha Graphics
Journal
Problem 4-5 (4}
Problem 4-5 (5)
Debit Credit
Cash at Bank 4900
Accounts Receivable 15,310
Prepaid Rent 2,000
Supplies 70
Equipment 31,370
Accumulated Depreciation 3650
Accounts Payable 7,290
Salary Payable 310
Unearned Service Revenue 800
Courtney Rolfe, capital 41,600
Total 53650 53650
Alpha Graphics
Post-closing Trial Balance
P 5-3
Alpha Graphics
Journal
Date Description Debit Credit
Inventory 740
GST clearing 74
Cash 814
Store Supplies 600
GST clearing 60
Accounts Payable 660
Inventory 3000
GST Clearing 300
Service Revenue 3300
Inventory 200
GST clearing 20
Accounts payable 220
Cash
Sales Revenue 1200
GST clearing 120
Account Payable
Inventory 910
1320
11 1000
Sep-02
5
8
9
GST clearing 90
Inventory 3800
GST clearing 380
Accounts payable 4180
Accounts receivable 10560
Sales revenue 9600
GST clearing 960
Cost of sales 5000
Inventory 5000
Electricity and Gas expense
Cash 270
GST clearing 32
Sales return and allowance 364
GST clearing 36
Accounting receivable 400
Cost Of Goods Sold 250
inventory 250
14
16 302
20
12
Accounts payable
Cash 2231
Sales discount 63
GST clearing 6
Accounts Receivable
23 Cash 7546
Discount Allowed 154
Account Receivable 7700
30 Accounts Payable 660
Cash 660
21 2300
ETHICAL ISSUE
1) Two parties other than OConner can be harmed by
mangers fraudulent; they are, Investors and Bank. When
money is being stolen from bank, then balance sheet will
not be prepared with factual information. So, investors might
hesitate to invest more money anymore. On the other side,
the banks would face problem for its name.
2) In this case, accounting can play a vital role, which is
known as internal control. According to the rulre of internal
control, the duty have to be separated from others. In this
case, the duty of managers were not separated which will
lead to high risk.
control, the duty have to be separated from others. In this
case, the duty of managers were not separated which will
lead to high risk.