SOLUTION:

Lo
W

step 1 step 2
Unadjusted Trial Balance Adjustment
Debit Credit Debit Credit
Cash 200 16
Supplies 12 9
Prepaid Insurance Expense 24 6
Machine 240
Accumulated Depr 5 2
Accounts Payable 60
Notes Payable 48
Louie, Capital 321
Louie, Drawing 8
Service Fee 82
Utilities Expense 32
516 516
Supplies Exp 9
Insurance Exp 6
Unearned Fee 16
Depr Exp 2
Rent Expense 16
Rent Payable 16

49 49
Profit (step 5)
Totals

ADJUSTING ENTRIES
DR CR
Supplies expense 9
Supplies 9
Cash 16
Unearned fee 16

Rent expense 16
Rent payable 16

Depereciation
Accumulatedexpense
Depreciation- 2
Machine 2

Insurance expense 6
Prepaid insurance expense 6
 Louie Company
WORKSHEET
step 4
step 3 Profit or loss Statement of Financial Position
Adjusted Trial Balance Income Statement (Income & Exp) Balance Sheet Closing Entries
Debit Credit Debit Credit Debit Credit Debit
216 216
3 3
18 18
240 240
7 7
60 60
- 48 48
321 321
8 8 8
- 82 82
32 32 32

9 9 9
6 6 6
16 16
2 2 2
16 16 16
16 16

550 550 65 82 485 468 73

17 17 Profit + capital
82 82 485 485
 Louie Company
1 Profit or loss
For the period ended December 31, 2013
Closing Entries Post Closing Trial Balance
Credit Debit Credit Service Revenue 82
216 Total Income 82
3 Utilities Expens 32
18 Rent Expense 16
240 Supplies Expens 9
7 Depreciation Ex 2
60 Insurance Expe -
48 6
321 321
8 Total Expenses 65
82 Profit 17

Louie Company
2 Statement of Changes in Owner's Equity
For the period ended December 31, 2013
16
B Owner Capital, Dec 1 321
CHNGS Changes
16 Additional investment -
Profit or Loss (I-E) 17
Drawing (8)
Total Changes - Inc (Dec) 9
E Owner Capital, Ending 330

403 485 468

17
485 485 Louie Company
3 Statement of Financial Position
As of the period ended December 31, 2013

ASSETS
Cash 216
Supplies 3
Prepaid Insurance 18
Machine 240
Accumulated Depr (7)
Total Assets 470

LIABILITIES & OWNER'S EQUITY

Accounts Payable 60
Notes Payable 48
Unearned Fee 16
Rent Payable 16
Total Liabiltiies 140
Owner Capital, Ending 330
Total Liabiltiies & Owner's Equi 470
 Income & Expense Summary (P or L) or INCOME SUMMARY
Utilities expens 32 Service Revenu 82
Rent expense 16
Supplies expens 9
Depreciation Ex 2
Insurance Expe 6

correct exp 65 correct income 82

NI or P 17

General Journal
CLOSING JOURNAL ENTRIES
1. Close the rev
Service revenue 82
Income summary 82

2. Close the exp

Income summar 65
Utilities expense 32
Rent expense 16
Supplies expense 9
Depreciation Expense 2
Insurance Expense 6

3. Close the income summary (clearing acct)

Income summar 17
Retained earnings 17

4. Close the W
Louie, Capital 8
Louie, Drawing 8

Landscape
Post-closing Trial Balance
As of the period ended December 31, 2013
Accounts Balances
Dr Cr
Cash 216
Supplies 3
Prepaid Insuran 18
Equipment 240
Accumulated Depr 7
Total liabilities 140
Owner Capital, End 330
Totals 477 477
SOLUTION: PREPARATION OF FS FROM WS GENERAL JOURNAL
BYRON COMPANY CLOSING JOURNAL ENTRIES
WORKSHEET Byron Company 1. Close the rev
1 Statement of Comprehensive Income Service Rev 700,000
Profit or loss Statement of Financial Position For the period ended May 31, 2013
May 1-31 Income Summary 700,000
Trial Balance Adjustment Adjusted Trial Balance Income Statement Balance Sheet Closing Entries Post Closing Trial Balance
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit 2. Close the exp
Cash
Accounts 150,000 150,000 150,000 150,000 Service Revenue 700,000 Income Summary 120,800
Receivable 90,000 90,000 90,000 90,000 Total Income 700,000 Insurance expense 2,000
Prepaid Insurance 12,000 2,000 10,000 10,000 10,000 ATB Supplies expense 3,800
Supplies 5,000 3,800 1,200 1,200 1,200 Insurance expen 2,000 Depreciation expense 25,000
Land 1,000,000 1,000,000 1,000,000 1,000,000 Supplies expens 3,800 Salaries expense 10,000
Building
Accumulated 2,500,000 2,500,000 2,500,000 2,500,000 Depreciation ex 25,000 Utiliies expense 20,000
Depreciation 250,000 25,000 275,000 275,000 275,000 Salaries expens 10,000 Interest expense 60,000
Accounts
UnearnedPayable
rent 40,000 40,000 40,000 40,000 Utiliies expense 20,000
income 400,000 100,000 300,000 300,000 300,000 Interest expens 60,000
10% Notes Payable 800,000 800,000 800,000 800,000
Byron Capital 1,737,000 1,737,000 1,737,000 2,266,200
Byron drawing 50,000 50,000 50,000
Rent income 600,000 100,000 700,000 700,000 700,000 Total Expenses 120,800 3. Close the income summary (clearing acct)
Utilities Expense 20,000 20,000 20,000 20,000 Profit 579,200 Income Summary (Profit) 579,200
3,827,000 3,827,000
Other Comprehensive Income - Capital 579,200
Insurance Expense 2,000 2,000 2,000 2,000 Total Comprehensive Income 579,200
Supplies Expense
Depreciation 3,800 3,800 3,800 3,800
BS Expense 25,000 25,000 25,000 25,000 4. Close the W
BS Salaries Expense 10,000 10,000 10,000 10,000 Capital 50,000
BS Salaries Payable 10,000 10,000 10,000 Byron Company Drawing 50,000
IS Interest Expense 60,000 60,000 60,000 60,000 Statement of Changes in Owner's Equity
IS Interest Payable 60,000 60,000 60,000 2 For the period ended May 31, 2013
May 1-31
Subtotals 200,800 200,800 3,922,000 3,922,000 120,800 700,000 3,801,200 3,222,000 Changes
Profit 579,200 579,200 Initial Contribution 1,737,000
Profit or Loss 579,200
Totals 200,800 200,800 3,922,000 3,922,000 700,000 700,000 3,801,200 3,801,200 Drawing/distribution 50,000
4800/24mos=200 Total Changes - Inc (Dec) 2,266,200
exp
employeex2 =400 24/24 E 1/24 past Owner Capital, Ending 2,266,200
x3 days=1200
in the Ledger, not Byron Company Byron Company
in the UTB 3 Statement of Financial Position/Balance Sheet Post-closing Trial Balance
As of the period ended May31, 2013
May 31 For the month ended May 31, 2013
OR - recorded
ADJUSTING ASSETS
ENTRIES Dr Cr Cash
Accounts 150,000 Accounts dr cr
Receivable
Prepaid 90,000 Cash 150,000
Insurance
Prepaidexpense 2,000 Insurance 10,000 AR
Insura 90,000
insurance 2,000 Supplies 1,200 nce
Suppli 10,000
Land 1,000,000 es 1,200
Supplies expense 3,800 Building 2,500,000 Land 1,000,000
Supplies 3,800 Accumulated depreciation (275,000) Building 2,500,000 -
Depreciation Total Assets 3,476,200 Accumulated depreciation 275,000
expense
Accumulated 25,000 AP 40,000
depreciation 25,000 unearned rent 300,000
Notes payable 800,000
Salaries Payable 10,000
Unearned rent Interest payable 60,000
income 100,000 Owner Capital, Ending 2,266,200
Rent income 100,000 Totals 3,751,200 3,751,200
LIABILITIES & OWNER'S EQUITY
Salaries expense 10,000 Accounts Payable 40,000
Salaries payable 10,000 Unearned Revenues 300,000
Travel Payable 800,000
Interest expense 60,000 Salaries Payable 10,000
Interest payable 60,000
Interest payable 60,000 Total Liabiltiies 1,210,000
Owner Capital, Ending 2,266,200
Total Liabiltiies & Owner's Equit 3,476,200
 Cash AR Supplies Laundry.Equip. AD =
1. JE =
1 1,500,000
2- 750,000 750,000
3 60,000
4 1,000,000
5 112,000
6
7 40,000
8- 60,000
9 80,000 - 80,000
10 340,000
11 - 25,000
UTB 2,085,000 72,000 60,000 750,000 - =
2. AJE =
a =
b 31,250 =
c - 58,000 =
d. int
ATB 2,085,000 72,000 2,000 750,000 31,250 =
3. CJE =
1 REV =
2 EXP =
3 PROFIT =
4W =
PCTB 2,085,000 72,000 2,000 750,000 31,250 =
Only permanent/balance sheet accounts remain in the PCTB
2,877,750 =
2,877,750 =
Total Assets =

MOMMY L
WORK

Trial Balance Adjustment Adjusted Trial Balance

Debit Credit Debit Credit Debit
Cash 2,085,000 2,085,000
 Accounts
Receivable 72,000 72,000
-
Supplies 60,000 58,000 2,000
Laundry
equipment
Accumulated 750,000 750,000
Depreciation
Accounts 31,250
Payable 55,000
10% Notes
Payable 1,000,000
Byron Capital 1,500,000

Rent income
Utilities 492,000
Expense 20,000 20,000

Supplies
Expense
Depreciation 58,000 58,000
BS Expense
Salaries 31,250 31,250
BS Expense
Salaries 60,000 20,000 80,000
BS Payable
Interest 20,000
IS Expense
Interest 25,000 25,000
IS Payable 25,000
Subtotals
Profit

Totals 134,250 134,250 3,123,250

 AP NP Sal.Pay. Int.Payable Owner,Capital Owner,WithdraIncome Summar

1,500,000

60,000
###

20,000

- 25,000
55,000 1,000,000 - 1,500,000 - -

20,000

25,000
55,000 1,000,000 20,000 25,000 1,500,000 - -

492,000
214,250
1,777,750 - 706,250
- -
55,000 1,000,000 20,000 25,000 1,777,750 - -
ccounts remain in the PCTB All temporary
2,877,750

Total Liabilities and Owner's Equity

MOMMY LABANDERA
WORKSHEET

Profit or loss Statement of Financial Position

Adjusted Trial Balance Income Statement Balance Sheet Closing Entries
Credit Debit Credit Debit Credit Debit Credit
 72,000
-
2,000
-
750,000
31,250 31,250
55,000 55,000
-
1,000,000 1,000,000
1,500,000

492,000 492,000 492,000

20,000 20,000

- -
58,000 58,000
31,250 31,250
80,000 80,000
20,000 10,000
25,000 25,000
25,000 60,000
214,250 492,000 824,000 1,156,250
277,950

3,123,250 492,200 492,000 824,000 1,156,250

Revenue Sal. Exp Sup.Exp. Int Exp. Depr.Exp. Utilities exp
Dr
Cash
Laundry Equipm
Supplies
112,000 Cash
Accounts Recei
40,000 20,000 Utilities Expens
60,000 Accounts Rec
Salaries Expens
340,000 Cash
Cash
Accounts Payab
492,000 60,000 - - - 20,000
Salaries Expens
20,000 Depreciation Ex
31,250 Supplies Expen
58,000 Interest Expen
25,000
492,000 80,000 58,000 25,000 31,250 20,000
Revenue
- 492,000 Income Summa
- 80,000 - 58,000 - 25,000 - 31,250 - 20,000

- - - - -
All temporary accounts are zero balances Income Summa

Statement of Comprehensive Income

Service Revenue

Total Income
Post Closing Trial Balance Insurance Expense
Debit Credit
- Supplies Expense 58,000
 72,000 Depreciation Expense 31,250
- Salaries Expense 80,000
2,000 Utilities Expense 20,000
- Interest Expense 25,000
750,000
31,250
55,000 Total Expenses
- Profit
1,000,000
Other Comprehensive Income
Total Comprehensive Income

Statement of Changes in Owner's Equity

Statement of Changes in Owner's Equity

2 For the period ended 2030

Initial Capital
Profit or Loss
Drawing/distribution
Total Changes - Inc (Dec)
Owner Capital, Ending
 General Journal
Dr Cr
1,500,000 Owner's Capital
750,000 Cash
60,000 Accounts payab;e
1,000,000 Notes Payable
112,000 Service Revenue
20,000 Accounts Payable
40,000 Service Revenue
60,000 Cash
80,000 Accounts Receivable
340,000 Service Revenue
25,000 Cash
ADJUSTING ENTRIES
20,000 Salaries Payable
31,250 Accumulated Depreciation-equiment
58,000 Supplies
25,000 Interest Payable

CLOSING ENTRIES
492,000 Income Summary
214,250 Sal Exp
Sup Exp
Int Exp
Depre. Exo
Utilities Exp
277,750 Owner's capital

3 Statement of Financial Position/Balance Sheet

As of the period ended 2030

492,000
ASSETS
Cash
Accounts Receivable
 Prepaid Insurance
Supplies
Equipments
Building
(Accumulated Depreciation)
Total Assets
214,250
277,750

- LIABILITIES & OWNER'S EQUITY

277,750 Accounts Payable

Notes Payable
Salaries Payable
Interest Payable
Total Liabilities
Owner Capital, Ending
1,500,000 Total Liabilites & Owner's Equity
277,750

1,777,750
1,777,750
1,500,000.00
750,000.00
60,000.00
1,000,000.00
112,000.00
20,000.00
40,000.00
60,000.00
80,000.00
340,000.00
25,000.00

20,000.00
31,250.00
58,000.00
25,000.00

492,000.00
80,000.00
58,000
25,000
31,250
20,000
277,750

May 31

2,085,000
72,000
 -
2,000

750,000
31,250
2,877,750

55,000

-
1,000,000
20,000
25,000
1,100,000
1,777,750
2,877,750