The following items were taken from the financial statements of J. Pineda Company
| Long-term debt | $1,000 | Accumulated depreciation-equipment | $5,655 |
| Prepaid insurance | 880 | Accounts payable | 1,444 |
| Equipment | 11,500 | Notes Payable (due after 2020) | 400 |
| Stock investments (long-term) | 264 | Owner's capital | 12,955 |
| Debt investments (short-term) | 3,690 | Accounts receivable | 1,696 |
| Notes Payable (due in 2020) | 500 | Inventory | 1,256 |
| Cash | 2,668 |
Instructions
Prepare a classified balance sheet in good form as of December 31, 2019.
These financial statement items are for Basten Company at year-end, July 31, 2019.
| Salaries and Wages Payable | $2,080 | Notes Payable (long-term) | $1,800 |
| Salaries and Wages Expense | 48,700 | Cash | 14,200 |
| Utilities Expense | 22,600 | Accounts Receivable | 9,780 |
| Equipment | 34,400 | Accumulated depreciation-equipment | 6,000 |
| Accounts Payable | 4,100 | Owner's Drawings | 3,000 |
| Service Revenue | 63,000 | Depreciation Expense | 4,000 |
| Rent Revenue | 8,500 | Owner's capital (beginning of the year) | 51,200 |
Instructions
- Prepare an income statement and an owner's equity statement for the year. The owner did not make any new investments during the year.
- Prepare a classified balance sheet at July 31, 2019.
Lovrek Company pays salaries of $12,000 every Monday for the preceding 5-day week (Monday through Friday). Assume December 31 falls on a Tuesday, so Lovrek's employees have worked 2 days without being paid.
Instructions
- Assume the company does not use reversing entries. Prepare the December 31 adjusting entry and the entry on Monday, January 6, when Lovrek pays the payroll.
- Assume the company does use reversing entries. Prepare the December 31 adjusting entry, the January 1 reversing entry,a and the entry on Monday January 6, when Lovrek pays the payroll.
On December 31, the adjusted trial balance of Shihata Employment Agency shows the following selected data.
| Accounts Receivable | $24,500 | Service Revenue | $92,500 |
| Interest Expense | 7,700 | Interest Payable | 2,200 |
Analysis shows that adjusting entries were made to (1) accrue $5,000 of service revenue and (2) accrue $2,200 interest expense.
Instructions
- Prepare the closing entries for the temporary accounts shows above at December 31.
- Prepare the reversing entries on January 1.
- Post the entries in (a) and (b). Underline and balance the accounts. (Use T-Accounts)
- Prepare the entries to record (1) the collection of the accrued revenue on January 10 and (2) the payment of all interest due ($3,000) on January 15.
- Post the entries in (d) to the temporary accounts.
Worksheet data for Savaglia Company are present as follows
Savaglia Company
Worksheet (partial)
For the Month Ended April 30, 2020
Worksheet (partial)
For the Month Ended April 30, 2020
Instruction
- journalize the closing entries at Atril 30.
- Post the closing entries to become Summary and Owner's Capital. Use T-accounts.
- Prepare a post-closing trial balance at April 30.
Victoria Lee Company had the following adjusted trial balance
Victoria Lee Company
Adjusted Trial Balance
For the Month Ended June 30, 2019
Adjusted Trial Balance
For the Month Ended June 30, 2019
Instructions
- Prepare closing entries at June 30, 2019.
- Prepare a post-closing trial balance
The adjusted trial balance for Okabe Company is presented bellow
Okabe Company
Adjusted Trial Blance
July 31, 2020
Adjusted Trial Blance
July 31, 2020
Instructions
- Prepare an income statement and an owner's equity statement for the year. Okabe did not make any new investments during the year.
- Prepare a classified balance sheet at July 31, 2019.