Problem 2 - Accountingcyle
Problem 2 - Accountingcyle
Problem 2 - Accountingcyle
2 Cash
Notes Payable
Bank loan
3 Equipment
Cash
The company acquired equipment
4 Prepid rent
Cash
The company paid sic month's advance for rent
5 Cash
Fees Earned
Rendered Services
6 Utilities expense
Cash
The company paid bills
7 Owner's drawing
Cash
The owner withdrew a cash
Incomes
Fees Earned 260,000
Expenses
Depreciation Expense
Utilities Expense
Interest Expense
Rent Expense
Salaries Expense
Total Expenses
Net Income 212,000
Closing Entries
Income Debit
Service fees 260,000
Income Summary
Expenses
Expense Summary 48,000
Depreciation Expense
Utilities Expense
Interest Expense
Rent Expens
Salaries Expense
Owner's Equity
Income Summary 212,000
Capital
Capital 50,000
Drawing
WORKSHEET
Adjustments:
Acc. Dep. -equipment
Interest payable
Salaries payable
Depreciation expense
Salaries expense
Interest expense
Rent expense
TOTAL
T-account
Cash
Debit Credit 320,000
320,000 200,000
320,000 240,000
108,000
260,000
200,000 15,000
200,000 50,000
367,000
108,000
108,000 Fees earned
260,000
260,000
260,000
260,000
UTB
Entity B
15,000 Unadjusted Trial Balance
15,000 December 31, 20x1
Cash
50,000 Equipment
50,000 Prepaid Rent
Notes payable
Owner's Capital
Credit Owner's Drawing
(200,000 x 12% / 12) Fees earned
2,000 Utilities Expense
(108,000 / 6 months)
18,000
8,000
Entity B
Statement of Owner's Equity
For the Year Ended December 31, 20x1
260,000
5,000
15,000
2,000
18,000
8,000
(260,000-48,000)
212,000
50,000
nadjusted trial Balance AJE#'S Adjustments AJE #'s Adjusted Trial Balance
Cr Dr Cr Dr
367,000
240000
200,000 18000 90,000
320,000
260,000 50000
15000
780000
5000
2000
8000
5000 5000
8000 8000
2000 2000
18000 18000
795,000
Equipment Prepaid Rent
240,000 108,000
240,000 108,000
Adjusting 18,000
90,000
ATB
Entity B Entity B
adjusted Trial Balance Adjusted Trial Balance
December 31, 20x1 December 31, 20x1
Debit Credit
367,000 Cash
240,000 Equipment
108,000 Acculumulated Dep. - Equipment
200,000 Prepaid Rent
320,000 Notes Payable
50,000 Interest Payable
260,000 Salaries Payable
15,000 Owner's Capital
780,000 780,000 Owner's Drawing
Fees Earned
Depreciation Expense
Utilities Expense
Interest Expense
Rent Expense
Salaries Expense
Entity B
Balance Sheet
December 31, 20x1
Assets
Cash
Equipment
320,000 Acculumated Dep. - Equipment
212,000 Prepaid Rent
TOTAL ASSETS:
-50,000 Liabilities and Equity
482,000 Notes payable
Interest payable
Salaries payable
Owner's Equity
TOTAL LIABILITIES AND EQUITY:
Entity B
Post-Closing Trial Balance
December 31, 20x1
Debit Credit
Cash 367,000
Equipment 240,000
Accumulated Dep. - Equipment 5,000
Prepaid Rent 90,000
Notes payable 200,000
Interest payable 2,000
Salaries payable 8,000
Capital 482,000
697,000 697,000
Entity B
Worksheet
For the year ended Dec. 31, 20x1
5000 5000
2000 2000
8000 8000
5000
8000
2000
18000
795000 48000 260000 747,000 535000 310000
212000 (NI)
260000 260000 747000 747000
Acculumated Dep. - Equipment
Adjusting 5,000
5,000
200,000
2,000
8,000
482,000
692,000
15000
5000
2000
8000
5000
8000
2000
18000
310000 697,000 697000
Salaries Expense