practice set Textbooks [PDF]

PRACTICE SET

COMPLETING THE ACCOUNTING CYCLE

I. Instructions: and conplete

Sept. 30 Income

CLOSING JOURNAL ENTRIES

Student should the Post-Closing

make the Closing Entries, post to the General Trial Balance. Be sure to name the unlabeled DR. 97

Sunmary

Ledger T account.

CR.

Sept. 30 Laundry 15 6 50 20 5

Advertising Expense Salaries Expense Rent Expense Telephone Expense Ironin$ Supplies Expense Deprecation Expense, Ironing Equipment

Income

CR. 185

Surrrnazy

Sept.

30 Income Surnnary Capital

88

Sept.

30 Capital, Linda Smith Withdrawals, Linda Smith

30

I

1

DR. 185

Revenue

88

I

II. ~ 105 Accounts

Accounts I

20 Prepaid

I

Ironinq

5

Payable

Salaries

.

.

Capital.

Payable

Withdrawals, Linda Smith

30

5

I

Advertising

I

Ironing EqIlipment

Accumu

30

88

Sllmmat:y

185

I

Salaries

6

DE:preciation

~

1

50

III.

185

Ironing Su~lies

6

I

Revenue

Telel?hone 20 I 20 I I

15

I

I

I

I

I

Income 97

EXPENSES

Supplies

lated

Smith

150 ~ 238 ~

Bal. 208

15 60

I

6

Unearned Ironing Revenue

rt~s~9

Linda

30

15

I

I

Adve

45

GENERAL LEDGER

I

Receivable

30

5

5

I

Depreciation

50

I

1

1

I

POST-CLOSING TRIAL BALANCE Speedy Ironing Service Post-Closing Trial Balance September 30, 1991

Cash

$105

Accounts Receivable

20

Prepaid

Advertising

45

Ironing

Supplies

Ironing

Equipment

5 60

Accumulated Depreciation, Ironing Equipment

$

1

Accounts

Payable

15

Salaries

Payable

6

Unearned

Ironing

Capital,

Linda

5

Revenue Smith

A26

-~ ~

$235

I

185

Instructions

Part IV: Complete the Reversing Entry and pay Oct. 2nd payroll. V: VI:

Make the Correcting Fill in the missing

IV. Paying

Sept.

-

Salaries

Salaries

30

.

No Reversing

Oct.

2

Salaries Salaries Cash

Entry

CR.

DR.

6

Sept.

6 6

Expense Payable

Paying

6

Payable

Instructions

: Given the a co:rporation.

for

Salaries Payable Salaries Expense

Oct.

2

Salaries Cash

Linda

CR.

6 6 12

Expense

12

a $5 purchase of Ironing Ironing Equipment account.

5

5

9. 10. 11.

7. Income Statement 8. Balance Sheet

VS.

Closing Post to

Entries Ledger

Post-Closing Trial

Reversing Entries

13.

Closing Entries

EQUITY

STOCKHOLDERS I

make the for $1 per

STARTING A BUSINESS CR. Cash Corrmon Stock 150

Smith

12.

Balance

entries Linda Smith made as a sole proprietor, Assume shares of Corrmon Stock sold at Par

DR. 150

Cash Capital,

DR. 6

6

1

that to the

OWNER I S EQUITY

entries

Expense Payable

THE THIRTEEN ACCOUNTING STEPS

4. Adjusting Entries 5. Post to Ledger 6. Adjusted Trial Balance

VII.

Salaries Salaries

CORRECTING ENTRIES

8 Linda discovered had been posted

VI.

.

30

Entry

ReversiDg

Oct.

Ironing Supplies Ironing Equipment

1.Journal Entries 2.Post" to Ledger 3 Trial Balance

-

Salaries

12

v. On Oct. Supplies

steps.

REVERSING ENTRIES

Expense

Salaries

Entry. accounting

required share.

DR. 150

CR. 150

RECORDING EARNINGS

Income Summary Retained Earnings

88

Retained Earnings Dividend Payable

30

30

Dividend Cash

30

30

88

Income Sumnary Capital, Linda

88

Smith

DISTRIBUTING

Withdrawal, Cash Capital,

Linda Smith

Linda

Withdrawals,

Smith Linda

30

EQUJ:TY SECTION

Linda Smith Net Income Withdrawals

Capital,

Owner's Equity Capital, September 1, 1992

September

30

EARNINGS

30

Smith

88

30

Payable

30

OF BALANCE SBBET

Stockholders $150

$ 88 2.Q. ~

$208

A27

I

Equity

CO!!ITlOnStock, $1 par 150 shares authorized and outstanding Retained Earnings Total Stockholders' Equity

$150 ~ $208