Blossom Company ended its fiscal year on July 31, 2020. The company’s adjusted trial balance as of the end of its fiscal year is as follows. Blossom Company Adjusted Trial Balance July 31, 2020 No. Account Titles Debit Credit 101 Cash $10,600 112 Accounts Receivable 9,400 157 Equipment 16,400 158 Accumulated Depreciation—Equip. $7,700 201 Accounts Payable 4,200 208 Unearned Rent Revenue 2,400 301 Owner’s Capital 47,200 306 Owner’s Drawings 15,700 400 Service Revenue 64,400 429 Rent Revenue 6,700 711 Depreciation Expense 8,700 726 Salaries and Wages Expense 56,400 732 Utilities Expense 15,400 $132,600 $132,600 (a) Correct answer icon Your answer is correct. Prepare the closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 31 enter an account title to close revenue accountsenter an account title to close revenue accounts enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to close revenue accountsenter an account title to close revenue accounts enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to close revenue accountsenter an account title to close revenue accounts enter a debit amountenter a debit amount enter a credit amountenter a credit amount (To close revenue accounts) July 31 enter an account title to close expense accountsenter an account title to close expense accounts enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to close expense accountsenter an account title to close expense accounts enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to close expense accountsenter an account title to close expense accounts enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to close expense accountsenter an account title to close expense accounts enter a debit amountenter a debit amount enter a credit amountenter a credit amount (To close expense accounts) July 31 enter an account title to close net income / (loss)enter an account title to close net income / (loss) enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to close net income / (loss)enter an account title to close net income / (loss) enter a debit amountenter a debit amount enter a credit amountenter a credit amount (To close net income / (loss)) July 31 enter an account title to close drawingsenter an account title to close drawings enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to close drawingsenter an account title to close drawings enter a debit amountenter a debit amount enter a credit amountenter a credit amount (To close drawings) eTextbook and Media List of Accounts Attempts: 1 of 3 used (b) Your Answer Correct Answer Partially correct answer icon Your answer is partially correct. Post to Owner’s Capital and Income Summary accounts. (Post entries in the order of journal entries presented in the previous part. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Owner’s Capital No. 301 Date Explanation Debit Credit Balance July 31 select an explanationselect an explanation enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter a balance amountenter a balance amount July 31 select an explanationselect an explanation enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter a balance amountenter a balance amount July 31 select an explanationselect an explanation enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter a balance amountenter a balance amount
Blossom Company ended its fiscal year on July 31, 2020. The company’s adjusted trial balance as of the end of its fiscal year is as follows. Blossom Company Adjusted Trial Balance July 31, 2020 No. Account Titles Debit Credit 101 Cash $10,600 112 Accounts Receivable 9,400 157 Equipment 16,400 158 Accumulated Depreciation—Equip. $7,700 201 Accounts Payable 4,200 208 Unearned Rent Revenue 2,400 301 Owner’s Capital 47,200 306 Owner’s Drawings 15,700 400 Service Revenue 64,400 429 Rent Revenue 6,700 711 Depreciation Expense 8,700 726 Salaries and Wages Expense 56,400 732 Utilities Expense 15,400 $132,600 $132,600 (a) Correct answer icon Your answer is correct. Prepare the closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 31 enter an account title to close revenue accountsenter an account title to close revenue accounts enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to close revenue accountsenter an account title to close revenue accounts enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to close revenue accountsenter an account title to close revenue accounts enter a debit amountenter a debit amount enter a credit amountenter a credit amount (To close revenue accounts) July 31 enter an account title to close expense accountsenter an account title to close expense accounts enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to close expense accountsenter an account title to close expense accounts enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to close expense accountsenter an account title to close expense accounts enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to close expense accountsenter an account title to close expense accounts enter a debit amountenter a debit amount enter a credit amountenter a credit amount (To close expense accounts) July 31 enter an account title to close net income / (loss)enter an account title to close net income / (loss) enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to close net income / (loss)enter an account title to close net income / (loss) enter a debit amountenter a debit amount enter a credit amountenter a credit amount (To close net income / (loss)) July 31 enter an account title to close drawingsenter an account title to close drawings enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to close drawingsenter an account title to close drawings enter a debit amountenter a debit amount enter a credit amountenter a credit amount (To close drawings) eTextbook and Media List of Accounts Attempts: 1 of 3 used (b) Your Answer Correct Answer Partially correct answer icon Your answer is partially correct. Post to Owner’s Capital and Income Summary accounts. (Post entries in the order of journal entries presented in the previous part. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Owner’s Capital No. 301 Date Explanation Debit Credit Balance July 31 select an explanationselect an explanation enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter a balance amountenter a balance amount July 31 select an explanationselect an explanation enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter a balance amountenter a balance amount July 31 select an explanationselect an explanation enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter a balance amountenter a balance amount
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter1: Accounting And The Financial Statements
Section: Chapter Questions
Problem 38E: Exercise 1-38 Identifying Current Assets and Liabilities Dunn Sporting Goods sells athletic clothing...
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Concept explainers
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Question
HOMEWORK 2 OF 5
Blossom Company ended its fiscal year on July 31, 2020. The company’s adjusted trial balance as of the end of its fiscal year is as follows.
|
Blossom Company
Adjusted Trial Balance July 31, 2020 |
||||||
|---|---|---|---|---|---|---|
|
No.
|
Account Titles
|
Debit
|
Credit
|
|||
| 101 | Cash |
$10,600
|
|
|||
| 112 | Accounts Receivable |
9,400
|
|
|||
| 157 | Equipment |
16,400
|
|
|||
| 158 |
|
$7,700
|
||||
| 201 | Accounts Payable |
|
4,200
|
|||
| 208 | Unearned Rent Revenue |
|
2,400
|
|||
| 301 | Owner’s Capital |
|
47,200
|
|||
| 306 | Owner’s Drawings |
15,700
|
|
|||
| 400 | Service Revenue |
|
64,400
|
|||
| 429 | Rent Revenue |
|
6,700
|
|||
| 711 | Depreciation Expense |
8,700
|
|
|||
| 726 | Salaries and Wages Expense |
56,400
|
|
|||
| 732 | Utilities Expense |
15,400
|
|
|||
|
$132,600
|
$132,600
|
(a)
Correct answer icon
Your answer is correct.
Prepare the closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
|
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
|---|---|---|---|
| July 31 |
enter an account title to close revenue accountsenter an account title to close revenue accounts
|
enter a debit amountenter a debit amount
|
enter a credit amountenter a credit amount
|
|
enter an account title to close revenue accountsenter an account title to close revenue accounts
|
enter a debit amountenter a debit amount
|
enter a credit amountenter a credit amount
|
|
|
enter an account title to close revenue accountsenter an account title to close revenue accounts
|
enter a debit amountenter a debit amount
|
enter a credit amountenter a credit amount
|
|
|
(To close revenue accounts)
|
|||
| July 31 |
enter an account title to close expense accountsenter an account title to close expense accounts
|
enter a debit amountenter a debit amount
|
enter a credit amountenter a credit amount
|
|
enter an account title to close expense accountsenter an account title to close expense accounts
|
enter a debit amountenter a debit amount
|
enter a credit amountenter a credit amount
|
|
|
enter an account title to close expense accountsenter an account title to close expense accounts
|
enter a debit amountenter a debit amount
|
enter a credit amountenter a credit amount
|
|
|
enter an account title to close expense accountsenter an account title to close expense accounts
|
enter a debit amountenter a debit amount
|
enter a credit amountenter a credit amount
|
|
|
(To close expense accounts)
|
|||
| July 31 |
enter an account title to close net income / (loss)enter an account title to close net income / (loss)
|
enter a debit amountenter a debit amount
|
enter a credit amountenter a credit amount
|
|
enter an account title to close net income / (loss)enter an account title to close net income / (loss)
|
enter a debit amountenter a debit amount
|
enter a credit amountenter a credit amount
|
|
|
(To close net income / (loss))
|
|||
| July 31 |
enter an account title to close drawingsenter an account title to close drawings
|
enter a debit amountenter a debit amount
|
enter a credit amountenter a credit amount
|
|
enter an account title to close drawingsenter an account title to close drawings
|
enter a debit amountenter a debit amount
|
enter a credit amountenter a credit amount
|
|
|
(To close drawings)
|
eTextbook and Media
List of Accounts
Attempts: 1 of 3 used
(b)
- Your Answer
- Correct Answer
Partially correct answer icon
Your answer is partially correct.
Post to Owner’s Capital and Income Summary accounts. (Post entries in the order of journal entries presented in the previous part. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
|
Owner’s Capital
|
No. 301
|
|||
|---|---|---|---|---|
|
Date
|
Explanation
|
Debit
|
Credit
|
Balance
|
|
July 31
|
select an explanationselect an explanation
|
|
|
enter a debit amountenter a debit amount
|
enter a credit amountenter a credit amount
|
enter a balance amountenter a balance amount
|
|
July 31
|
select an explanationselect an explanation
|
|---|
|
|
enter a debit amountenter a debit amount
|
enter a credit amountenter a credit amount
|
enter a balance amountenter a balance amount
|
|
July 31
|
select an explanationselect an explanation
|
|---|
|
|
enter a debit amountenter a debit amount
|
enter a credit amountenter a credit amount
|
enter a balance amountenter a balance amount
|
|
|
Income Summary
|
No. 350
|
|||
|---|---|---|---|---|
|
Date
|
Explanation
|
Debit
|
Credit
|
Balance
|
|
July 31
|
select an explanationselect an explanation
|
|
|
|||
|
July 31
|
select an explanationselect an explanation
|
|---|
|
|
enter a debit amountenter a debit amount
|
enter a credit amountenter a credit amount
|
enter a balance amountenter a balance amount
|
|
July 31
|
select an explanationselect an explanation
|
|---|
|
|
|
|
eTextbook and Media
List of Accounts
Attempts: 3 of 3 used
(c)
Prepare a post-closing trial balance at July 31.
|
BLOSSOM COMPANY
Post-Closing Trial Balance choose the accounting periodchoose the accounting period |
|---|
|
|
|||
|---|---|---|---|
|
Debit
|
Credit
|
||
|
enter an account titleenter an account title
|
|||
|
enter an account titleenter an account title
|
|||
|
enter an account titleenter an account title
|
|||
|
enter an account titleenter an account title
|
|||
|
enter an account titleenter an account title
|
|||
|
enter an account titleenter an account title
|
|||
|
enter an account titleenter an account title
|
|||
| Totals |
eTextbook and Media
List of Accounts
Attempts: 0 of 3 used
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