(20-30 min.) E 4-1

Pfeiffer Pack-n-Mail Service

Work Sheet

Month Ended September 30, 20X6

ACCOUNT TITLE

TRIAL BALANCE

ADJUSTMENTS

ADJUSTED TRIAL BALANCE

INCOME STATEMENT

BALANCE SHEET

DEBIT

CREDIT

DEBIT

CREDIT

DEBIT

CREDIT

DEBIT

CREDIT

DEBIT

CREDIT

Cash

3,560

      

3,560

      

3,560

  

Accounts receivable

3,440

  

(a) 600

  

4,040

      

4,040

  

Prepaid rent

1,200

    

(d) 800

400

      

400

  

Supplies

3,390

    

(e) 1,650

1,740

      

1,740

  

Equipment

32,600

      

32,600

      

32,600

  

Accumulated depreciation

  

1,840

  

(b) 40

  

1,880

      

1,880

Accounts payable

  

3,600

      

3,600

      

3,600

Salary payable

      

(c) 500

  

500

      

500

Gail Pfeiffer, capital

  

36,030

      

36,030

      

36,030

Gail Pfeiffer, withdrawals

2,000

      

2,000

      

2,000

  

Service revenue

  

7,300

  

(a) 600

  

7,900

  

7,900

    

Depreciation expense

    

(b) 40

  

40

  

40

      

Salary expense

1,800

  

(c) 500

  

2,300

  

2,300

      

Rent expense

    

(d) 800

  

800

  

800

      

Utilities expense

780

      

780

  

780

      

Supplies expense

_______

_______

(e) 1,650

_______

1,650

_________

1,650

________

_______

______
 

48,770

48,770

3,590

3,590

49,910

49,910

5,570

7,900

44,340

42,010

Net income

            

2,330

________

_______

2,330
             

7,900

7,900

44,340

44,340

Net income: $2,330.

(15-20 min.) E 4-2

Journal

DATE

ACCOUNTS AND EXPLANATIONS

POST.

REF.

DEBIT

CREDIT
   

Adjusting Entries

      

Sep.

30

Account Receivable

  

600

  
   

Service Revenue

    

600
           
 

30

Depreciation Expense

  

40

  
   

Accumulated Depreciation

    

40
           
 

30

Salary Expense

  

500

  
   

Salary Payable

    

500
           
 

30

Rent Expense

  

800

  
   

Prepaid Rent

    

800
           
 

30

Supplies Expense

  

1,650

  
   

Supplies

    

1,650
           
   

Closing Entries

      
 

30

Service Revenue

  

7,900

  
   

Income Summary

    

7,900
           
 

30

Income Summary

  

5,570

  
   

Depreciation Expense

    

40
   

Salary Expense

    

2,300
   

Rent Expense

    

800
   

Utilities Expense

    

780
   

Supplies Expense

    

1,650
           
 

30

Income Summary ($7,900 ! $5,570)

  

2,330

  
   

Gail Pfeiffer, Capital

    

2,330
           
 

30

Gail Pfeiffer, Capital

  

2,000

  
   

Gail Pfeiffer, Withdrawals

    

2,000

 

(20-30 min.) E 4-3

Accounts Receivable

  

Prepaid Rent
 

3,440

        

1,200

Adj.

800

Adj.

600

      

Bal.

400

    

Bal.

4,040

              

Supplies

  

Accumulated Depreciation
 

3,390

Adj.

1,650

        

1,840

Bal.

1,740

          

Adj.

40
             

Bal.

1,880

Salary Payable

  

Gail Pfeiffer, Capital
   

Adj.

500

        

36,030
   

Bal.

500

  

Clo.

2,000

Clo.

2,330
             

Bal.

36,360

Gail Pfeiffer, Withdrawals

  

Income Summary
 

2,000

Clo.

2,000

  

Clo.

5,570

Clo.

7,900
         

Clo.

2,330

Bal.

2,330

Service Revenue

  

Depreciation Expense
     

7,300

  

Adj.

40

    
   

Adj.

600

  

Bal.

40

Clo.

40

Clo.

7,900

Bal.

7,900

          

Salary Expense

  

Rent Expense
 

1,800

      

Adj.

800

    

Adj.

500

      

Bal.

800

Clo.

800

Bal.

2,300

Clo.

2,300

          

Utilities Expense

  

Supplies Expense
 

780

      

Adj.

1,650

    

Bal.

780

Clo.

780

  

Bal.

1,650

Clo.

1,650

 

(10-15 min.) E 4-4

Pfeiffer Pack-n-Mail Service

Postclosing Trial Balance

September 30, 20X6

ACCOUNT

DEBIT

CREDIT

Cash

$ 3,560

  

Accounts receivable ($3,440 + $600)

4,040

  

Prepaid rent ($1,200 ! $800)

400

  

Supplies ($3,390 ! $1,650)

1,740

  

Equipment

32,600

  

Accumulated depreciation ($1,840 + $40)

  

$ 1,880

Accounts payable

  

3,600

Salary payable ($0 + $500)

  

500

Gail Pfeiffer, capital (see solution to Ex. 4-3)

_________

36,360

Total

$42,340

$42,340

 

 

 

(15-25 min.) E 4-9

Req. 1

Journal

DATE

ACCOUNTS AND EXPLANATIONS

POST.

REF.

DEBIT

CREDIT
   

Adjusting Entries

      

April

30

Unearned Service Revenue

  

4,300

  
   

Service Revenue ($19,100 ! $14,800)

    

4,300
           
 

30

Salary Expense ($3,800 ! $3,000)

  

800

  
   

Salary Payable

    

800
           
 

30

Rent Expense ($1,400 ! $1,200)

  

200

  
   

Prepaid Rent

    

200
           
 

30

Depreciation Expense ($300 ! $0)

  

300

  
   

Accumulated Depreciation

    

300
           
 

30

Supplies Expense ($400 ! $0)

  

400

  
   

Supplies

    

400
           
   

Closing Entries

      

April

30

Service Revenue

  

19,100

  
   

Income Summary

    

19,100
           
 

30

Income Summary

  

6,700

  
   

Salary Expense

    

3,800
   

Rent Expense

    

1,400
   

Depreciation Expense

    

300
   

Supplies Expense

    

400
   

Utilities Expense

    

800
           
 

30

Income Summary ($19,100 ! $6,700)

  

12,400

  
   

H. B. Fuller, Capital

    

12,400
           
 

30

H. B. Fuller, Capital

  

1,000

  
   

H. B. Fuller, Withdrawals

    

1,000

(continued) E 4-9

Req. 2

The business had a net income of $12,400. Service revenues ($19,100) exceeded total expenses ($6,700).

 

Faculty Webserver - Disclaimer
Views expressed on this website are the views of the faculty member.