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Accounting Process

1. The document reviews accounting processes including determining beginning and ending owner's equity and assets based on various financial transactions and account balances. 2. It provides examples of calculating equity and asset amounts given withdrawals, revenues, expenses and account balances. It also includes instructions to prepare closing entries from income statement account balances. 3. The last few problems require journalizing closing entries, preparing a post-closing trial balance, and answering questions about account balances from provided financial information.

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34 views3 pages

Accounting Process

1. The document reviews accounting processes including determining beginning and ending owner's equity and assets based on various financial transactions and account balances. 2. It provides examples of calculating equity and asset amounts given withdrawals, revenues, expenses and account balances. It also includes instructions to prepare closing entries from income statement account balances. 3. The last few problems require journalizing closing entries, preparing a post-closing trial balance, and answering questions about account balances from provided financial information.

Uploaded by

abernardino.forschool
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Review of the Accounting Process

1) Determine the ending owner's equity of a business having a beginning owner's equity of $3,200,
withdrawals of $2,000, and after closing the revenues and expenses Income Summary has a credit balance
of $5,250.

2) Determine the beginning owner's equity of a business having an ending owner's equity of $6,000,
withdrawals of $1,250, and after closing the revenues and expenses, the Income Summary account has a
debit balance of $2,100.

3) Determine the beginning assets of a business having ending liabilities of $4,000, the liabilities decreased
by $1,500 during the year, an ending owner's equity of $10,700, additional investments of $2,000,
withdrawals of $15,600, and after closing the revenues and expenses the Income Summary account has a
credit balance of $6,800.

4) From the following items in the income statement columns of the worksheet of Brandy's Tutoring at
December 31, prepare the closing entries without explanation, assuming that a $2,000 withdrawal was
made during the period.

Income Statement
Account Debit Credit
Tutoring Fees Earned 4,450
Wages Expense 700
Rent Expense 600
Supplies Expense 450
Insurance Expense 250 _____
2,000 4,450
Net Income 2,450 _____
$4,450 $4,450

5) From the following items in the income statement columns of the worksheet of Monaghan Company at
December 31, prepare the closing entries without explanation, assuming that a $500 withdrawal was
made during the period.

Income Statement
Account Debit Credit
Service Revenue Earned 900
Wages Expense 550
Rent Expense 250
Supplies Expense 100
Insurance Expense 50 ____
950 900
Net Loss ____ 50
$950 $950
6) A summary of selected ledger accounts appears below for S. Ball for the current calendar year.
Answer the following questions.
1. What was the total amount of withdrawals for the year?
2. What was the net income?
3. What was the total revenue?
4. What were the total expenses?

7) On the basis of the following data taken from the adjusted trial balance columns of the worksheet for
the year ended December 31 for Painting the Perfect Picture, journalize the four closing entries in the
proper order.

Account Debit Credit


Cash 20,000
Accounts Receivable 67,000
Supplies 7,000
Equipment 200,000
Accumulated Depreciation 70,000
Accounts Payable 30,000
Capital 200,250
Withdrawals 25,000
Fees Earned 100,000
Salary Expense 27,000
Rent Expense 17,500
Depreciation Expense 20,000
Supplies Expense 12,500
Miscellaneous Expense __4,250 ______
Total 400,250 400,250

8) From the following accounts, prepare in proper form a post-closing trial balance for Jones' Pet Sitting
on December 31. (Note: These balances are before closing).

Jones, Capital $7,500


Cash 3,750
Accumulated Depreciation 1,500
Equipment 5,000
Accounts Payable 1,900
Jones, Withdrawals 1,000
Wages Expense 1,250
Supplies Expense 1,775
Accounts Receivable 3,125
Personal Trainer Fees 5,000
9) From the following accounts, prepare in proper form a post-closing trial balance for Matison Company
on December 31.

Accounts Receivable $4,600


Accounts Payable 1,290
Cash 6,450
Salaries Payable 1,660
Supplies 500
Prepaid Insurance 1,200
Matison, Capital 9,800

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