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Prepare an Adjusted Trial Balance at November 30, 2021. Journalize the Closing Entries. (Hint—Use your Adjusted Trial Balance for accounts and amounts--?) Post the Closing Entries to the General Ledger accounts and find the final ending balances. Prepare a Post-Closing Trial Balance on November 30, 2021. Original: Nov. 1   Issued 5,000 shares of Sweet Angels common stock for $13,000. Each share has a $1.75 par.        1 Borrowed $7,500 on a 2-year, 8% note payable.        1 Paid $9,000 to purchase used floor and window cleaning equipment from a company going out of business ($4,820 was for the floor equipment and $4,180 for the window equipment).        2 Paid $200 for November for internet and phone service.        2 Purchased cleaning supplies for $950 on account.        2 Hired 4 employees. Each will be paid $450 per 5-day work week (Monday-Friday). Employees will begin working on Monday, November 8th.     3 Discussions with the insurance agent indicated that providing outside window cleaning services would cost too much to insure. Sylvia sold the window cleaning equipment for $4,000 cash.        3 Negotiated insurance coverage at a rate of $9,840 per year. Sylvia paid $2,460 cash for the first quarter of coverage.       4 Returned $150 of the cleaning supplies.    5 Paid $2.70 per share to buy 300 shares of Sweet Angels, Inc common stock from a shareholder who disagreed with management goals. The shares will be held as treasury stock.    10 Paid $500 on amount owed on cleaning supplies.    15 Paid for employees’ wages for the week of November 8-12.      15  Billed customers $3,600 for cleaning services performed through November 12, 2021.      18 Received $900 from a customer for 4 weeks of cleaning services to begin on November 22, 2021.      19 Purchased additional cleaning supplies for $700.      22 Paid employees’ wages for the week of November 15-19.      22 Billed customers $3,900 for cleaning services performed through November 19th.      23 Collected $2,400 cash from customers billed on November 15.      25 Paid $200 for Internet and phone services for December.      26 Declared and paid a cash dividend of $0.11 per share.      29 Paid employees’ wages for the week of November 22-26.   29 Billed customers $4,300 for cleaning services performed through November 26th   30 Collected $4,200 from customers billed on November 15 & 22.      30 Received notice that a customer who was billed $150 for services performed November 10th has filed for bankruptcy. Sweet Angels, Inc does not expect to collect any portion of this outstanding receivable. (Sweet Angels will follow the GAAP Guidelines for uncollectible accounts.)   Adjustment Data: Services performed for customers through November 30, 2021, but unbilled and uncollected were $3,000. Sweet Angels used the allowance method to estimate bad debts. Sweet Angels estimates that 3% of its month-end receivables will not be collected. Record 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated life of 5 years, and $400 salvage value. Record 1 month of insurance expense. An inventory count shows $750 of supplies on hand on November 30th. Record services performed for the customer who paid in advance on November 18th. Accrue for wages owed through November 30, 2021. Accrue interest expense for one month.

Prepare an Adjusted Trial Balance at November 30, 2021. Journalize the Closing Entries. (Hint—Use your Adjusted Trial Balance for accounts and amounts--?) Post the Closing Entries to the General Ledger accounts and find the final ending balances. Prepare a Post-Closing Trial Balance on November 30, 2021. Original: Nov. 1   Issued 5,000 shares of Sweet Angels common stock for $13,000. Each share has a $1.75 par.        1 Borrowed $7,500 on a 2-year, 8% note payable.        1 Paid $9,000 to purchase used floor and window cleaning equipment from a company going out of business ($4,820 was for the floor equipment and $4,180 for the window equipment).        2 Paid $200 for November for internet and phone service.        2 Purchased cleaning supplies for $950 on account.        2 Hired 4 employees. Each will be paid $450 per 5-day work week (Monday-Friday). Employees will begin working on Monday, November 8th.     3 Discussions with the insurance agent indicated that providing outside window cleaning services would cost too much to insure. Sylvia sold the window cleaning equipment for $4,000 cash.        3 Negotiated insurance coverage at a rate of $9,840 per year. Sylvia paid $2,460 cash for the first quarter of coverage.       4 Returned $150 of the cleaning supplies.    5 Paid $2.70 per share to buy 300 shares of Sweet Angels, Inc common stock from a shareholder who disagreed with management goals. The shares will be held as treasury stock.    10 Paid $500 on amount owed on cleaning supplies.    15 Paid for employees’ wages for the week of November 8-12.      15  Billed customers $3,600 for cleaning services performed through November 12, 2021.      18 Received $900 from a customer for 4 weeks of cleaning services to begin on November 22, 2021.      19 Purchased additional cleaning supplies for $700.      22 Paid employees’ wages for the week of November 15-19.      22 Billed customers $3,900 for cleaning services performed through November 19th.      23 Collected $2,400 cash from customers billed on November 15.      25 Paid $200 for Internet and phone services for December.      26 Declared and paid a cash dividend of $0.11 per share.      29 Paid employees’ wages for the week of November 22-26.   29 Billed customers $4,300 for cleaning services performed through November 26th   30 Collected $4,200 from customers billed on November 15 & 22.      30 Received notice that a customer who was billed $150 for services performed November 10th has filed for bankruptcy. Sweet Angels, Inc does not expect to collect any portion of this outstanding receivable. (Sweet Angels will follow the GAAP Guidelines for uncollectible accounts.)   Adjustment Data: Services performed for customers through November 30, 2021, but unbilled and uncollected were $3,000. Sweet Angels used the allowance method to estimate bad debts. Sweet Angels estimates that 3% of its month-end receivables will not be collected. Record 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated life of 5 years, and $400 salvage value. Record 1 month of insurance expense. An inventory count shows $750 of supplies on hand on November 30th. Record services performed for the customer who paid in advance on November 18th. Accrue for wages owed through November 30, 2021. Accrue interest expense for one month.

Quickbooks Online Accounting
Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter4: Operating Activities: Sales And Cash Receipts
Section: Chapter Questions
Problem 2.4C
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Question
  1. Prepare an Adjusted Trial Balance at November 30, 2021.
  2. Journalize the Closing Entries. (Hint—Use your Adjusted Trial Balance for accounts and amounts--?)
  3. Post the Closing Entries to the General Ledger accounts and find the final ending balances.
  4. Prepare a Post-Closing Trial Balance on November 30, 2021.

Original:

Nov. 1

 

Issued 5,000 shares of Sweet Angels common stock for $13,000. Each share has a $1.75 par.

       1

Borrowed $7,500 on a 2-year, 8% note payable.

       1

Paid $9,000 to purchase used floor and window cleaning equipment from a company going out of business ($4,820 was for the floor equipment and $4,180 for the window equipment).

       2

Paid $200 for November for internet and phone service.

       2

Purchased cleaning supplies for $950 on account.

       2

Hired 4 employees. Each will be paid $450 per 5-day work week (Monday-Friday). Employees will begin working on Monday, November 8th.

    3

Discussions with the insurance agent indicated that providing outside window cleaning services would cost too much to insure. Sylvia sold the window cleaning equipment for $4,000 cash.

       3

Negotiated insurance coverage at a rate of $9,840 per year. Sylvia paid $2,460 cash for the first quarter of coverage.

      4

Returned $150 of the cleaning supplies.

   5

Paid $2.70 per share to buy 300 shares of Sweet Angels, Inc common stock from a shareholder who disagreed with management goals. The shares will be held as treasury stock.

   10

Paid $500 on amount owed on cleaning supplies.

   15

Paid for employees’ wages for the week of November 8-12.

     15 

Billed customers $3,600 for cleaning services performed through November 12, 2021.

     18

Received $900 from a customer for 4 weeks of cleaning services to begin on November 22, 2021.

     19

Purchased additional cleaning supplies for $700.

     22

Paid employees’ wages for the week of November 15-19.

     22

Billed customers $3,900 for cleaning services performed through November 19th.

     23

Collected $2,400 cash from customers billed on November 15.

     25

Paid $200 for Internet and phone services for December.

     26

Declared and paid a cash dividend of $0.11 per share.

     29

Paid employees’ wages for the week of November 22-26.

  29

Billed customers $4,300 for cleaning services performed through November 26th

  30

Collected $4,200 from customers billed on November 15 & 22.

     30

Received notice that a customer who was billed $150 for services performed November 10th has filed for bankruptcy. Sweet Angels, Inc does not expect to collect any portion of this outstanding receivable. (Sweet Angels will follow the GAAP Guidelines for uncollectible accounts.)

 

Adjustment Data:

  1. Services performed for customers through November 30, 2021, but unbilled and uncollected were $3,000.
  2. Sweet Angels used the allowance method to estimate bad debts. Sweet Angels estimates that 3% of its month-end receivables will not be collected.
  3. Record 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated life of 5 years, and $400 salvage value.
  4. Record 1 month of insurance expense.
  5. An inventory count shows $750 of supplies on hand on November 30th.
  6. Record services performed for the customer who paid in advance on November 18th.
  7. Accrue for wages owed through November 30, 2021.
  8. Accrue interest expense for one month.

Here's what I have done:

 

Supplies Expense +Journal Entries Nov 29 Wages Expense 1800.00 11/30 750 Date Account Title Post Debit ($) Credit ($) Cash 1800.00 Bal 750 Ref. Nov 26 Dividends 517.00 Nov 1 Cash 13000.00 Cash 517.00 Nov 30 Cash 4200.00 Salaries & Wages Payable Common Stock 8750.00 Paid In Capital in Excess of Par - Common Stock 4250.00 Accounts Receivable 4200.00 11/30 720 Nov 1 Cash 7500.00 Nov 29 Accounts Receivable 4300.00 Bal 720 Notes Payable 7500.00 Service Revenue 4300.00 Floor Equipment Window Equipment Nov 1 4820.00 11/30 Allowance for Doubtful Accounts 150 Interest Expense 4180.00 Accounts Receivable 150 11/30 50 Cash 9000.00 Adjusting Entries Bal 50 Nov 2 Internet Expense 200.00 11/30 Accounts Receivable 3000 Cash 200.00 Service Revenue 3000 Bad Debt Expense Cleaning Supplies Accounts Payable No Journal Entry Interest Payable Nov 2 950.00 11/30 150 11/30 50 950.00 Allowance for Doubtful Accounts |150 Bal 50 Nov 2 (5050+3000)X.03=241.50 & 242 + 150 Cash 4000.00 Depreciation Expense Accumulated Depreciation Nov 3 11/30 74 Loss on Sale of Window Equipment Window Equipment Dividends 180.00 74 4180.00 [(4820-400)/5]/12 = 73.67 Insurance Expense 11/26 517 Bal 517 Nov 3 Prepaid Insurance 2460.00 11/30 820 Cash 2460.00 Prepaid Insurance (2460/3) Supplies Expense 820 11/4 Accounts Payable Cleaning Supplies Treasury Stock 150 Prepaid Internet 11/25 200 150 11/30 750 Nov 5 810.00 Supplies (1500-7500 Bal 200 750 Cash 810.00 Nov 10 Accounts Payable 500.00 11/30 Unearned Service Revenue 315 Cash 500.00 Service Revenue 315 Nov 15 Wages Expense 1800.00 (900/4)/5 = 45 per day & 7 Days Worked (11/22- 26) & (11/29-30) Cash 1800.00 Nov 15 Accounts Receivable 3600.00 11/30 Salaries & Wages Expense 720 Service Revenue 3600.00 Salaries & Wages Payable 720 Nov 18 Cash 900.00 (1800/5)= 360 per day & 2 days worked (11/29-30) Unearned Service Revenue 900.00 11/30 Interest Expense 50 Nov 22 Wages Expense 1800.00 Interest Payable 50 Cash 1800.00 (7500x.08)/12 Nov 19 Cleaning Supplies 700.00 Cash 700.00 Nov 22 Accounts Receivable 3900.00 Service Revenue 3900.00 Nov 23 Cash 2400.00 Accounts Receivable 2400.00 Nov 25 Prepaid Internet 200.00 Cash 200.00
Transcribed Image Text:Supplies Expense +Journal Entries Nov 29 Wages Expense 1800.00 11/30 750 Date Account Title Post Debit ($) Credit ($) Cash 1800.00 Bal 750 Ref. Nov 26 Dividends 517.00 Nov 1 Cash 13000.00 Cash 517.00 Nov 30 Cash 4200.00 Salaries & Wages Payable Common Stock 8750.00 Paid In Capital in Excess of Par - Common Stock 4250.00 Accounts Receivable 4200.00 11/30 720 Nov 1 Cash 7500.00 Nov 29 Accounts Receivable 4300.00 Bal 720 Notes Payable 7500.00 Service Revenue 4300.00 Floor Equipment Window Equipment Nov 1 4820.00 11/30 Allowance for Doubtful Accounts 150 Interest Expense 4180.00 Accounts Receivable 150 11/30 50 Cash 9000.00 Adjusting Entries Bal 50 Nov 2 Internet Expense 200.00 11/30 Accounts Receivable 3000 Cash 200.00 Service Revenue 3000 Bad Debt Expense Cleaning Supplies Accounts Payable No Journal Entry Interest Payable Nov 2 950.00 11/30 150 11/30 50 950.00 Allowance for Doubtful Accounts |150 Bal 50 Nov 2 (5050+3000)X.03=241.50 & 242 + 150 Cash 4000.00 Depreciation Expense Accumulated Depreciation Nov 3 11/30 74 Loss on Sale of Window Equipment Window Equipment Dividends 180.00 74 4180.00 [(4820-400)/5]/12 = 73.67 Insurance Expense 11/26 517 Bal 517 Nov 3 Prepaid Insurance 2460.00 11/30 820 Cash 2460.00 Prepaid Insurance (2460/3) Supplies Expense 820 11/4 Accounts Payable Cleaning Supplies Treasury Stock 150 Prepaid Internet 11/25 200 150 11/30 750 Nov 5 810.00 Supplies (1500-7500 Bal 200 750 Cash 810.00 Nov 10 Accounts Payable 500.00 11/30 Unearned Service Revenue 315 Cash 500.00 Service Revenue 315 Nov 15 Wages Expense 1800.00 (900/4)/5 = 45 per day & 7 Days Worked (11/22- 26) & (11/29-30) Cash 1800.00 Nov 15 Accounts Receivable 3600.00 11/30 Salaries & Wages Expense 720 Service Revenue 3600.00 Salaries & Wages Payable 720 Nov 18 Cash 900.00 (1800/5)= 360 per day & 2 days worked (11/29-30) Unearned Service Revenue 900.00 11/30 Interest Expense 50 Nov 22 Wages Expense 1800.00 Interest Payable 50 Cash 1800.00 (7500x.08)/12 Nov 19 Cleaning Supplies 700.00 Cash 700.00 Nov 22 Accounts Receivable 3900.00 Service Revenue 3900.00 Nov 23 Cash 2400.00 Accounts Receivable 2400.00 Nov 25 Prepaid Internet 200.00 Cash 200.00
11/29 11/29 11/30 Ledger Accounts: Date Debit ($) Credit ($) Balance ($) 4300 Cash Nov 2 200 $200 4200 Debit ($) 13,000 Credit ($) Balance ($) 13,000 20,500 Date Nov 1 Nov 1 5050 Cleaning Supplies Debit ($) 150 Balance ($) $950 7,500 Date Credit ($) 11/30 3000 8050 11,500 11,300 Nov 1 9,000 Nov 3 950 Nov 2 Nov 3 Nov 3 200 11/4 150 4,000 15,300 Nov 21 700 $1500 Service Revenue 2,460 12,840 11/30 750 750 Date Debit ($) Credit ($) Balance ($) 810 12,030 Nov 15 Nov 22 $3,600 $7,500 Nov 5 3,600 Nov 10 500 11,530 3,900 Nov 15 Nov 18 Loss on Sale of Window Equipment Debit ($) 1,800 9,730 Balance ($) 11/29 11/30 11/30 Date Credit ($) 4300 11800 900 10,630 Nov 3 180 $180 3000 14800 Nov 19 1,800 8,830 315 15115 8,130 10,530 Nov 22 700 Prepaid Insurance Debit ($) Nov 23 2,400 Credit ($) Balance ($) $2,460 Date Unearned Service Revenue Nov 25 200 Nov 6 2,460 Date Debit ($) Credit ($) Balance ($) 11/26 11/29 11/30 517 11/30 820 1640 Nov 17 900 $900 1800 11/30 315 585 4200 12213 Treasury Stock Debit ($) Credit ($) Balance ($) $810 Date Common Stock Nov 8 810 Allowance for Doubtful Accounts Debit ($) Credit ($) Balance ($) $8,750 Date Debit ($) Credit ($) Balance ($) Date Nov 1 8,750 11/30 150 150 Accounts Payable Debit ($) 11/30 392 242 Balance ($) $950 Date Credit ($) Paid in Capital- Common Stock Debit ($) Nov 3 950 Balance ($) $4,250 Date Credit ($) 11/4 Bad Debt Exp 150 Nov 1 4,250 Nov 9 500 $300 11/30 392 Bal 392 Notes Payable Debit ($) Credit ($) Balance ($) $7,500 Date Depreciation Exp Wages Expense Debit ($) Nov 1 7,500 Credit ($) 11/30 74 Balance ($) $1,800 Date Nov 13 Nov 20 1,800 Bal 74 Floor Equipment 1,800 $3,600 Debit ($) Credit ($) Balance ($) $4,820 Date 11/29 1800 5400 Accumulated Nov 1 4,820 Depreciation 11/30 720 6120 11/30 74 Window Equipment Bal 74 Date Debit ($) Credit ($) Balance ($) Accounts Receivable Nov 1 Nov 6 4,180 $4,180 Debit ($) Credit ($) Balance ($) $3,600 $7,500 $5,100 Date Insurance Expense 4,180 Nov 15 3,600 11/30 820 Nov 22 3,900 Bal 820 Internet Expense 2,400 Nov 23 +
Transcribed Image Text:11/29 11/29 11/30 Ledger Accounts: Date Debit ($) Credit ($) Balance ($) 4300 Cash Nov 2 200 $200 4200 Debit ($) 13,000 Credit ($) Balance ($) 13,000 20,500 Date Nov 1 Nov 1 5050 Cleaning Supplies Debit ($) 150 Balance ($) $950 7,500 Date Credit ($) 11/30 3000 8050 11,500 11,300 Nov 1 9,000 Nov 3 950 Nov 2 Nov 3 Nov 3 200 11/4 150 4,000 15,300 Nov 21 700 $1500 Service Revenue 2,460 12,840 11/30 750 750 Date Debit ($) Credit ($) Balance ($) 810 12,030 Nov 15 Nov 22 $3,600 $7,500 Nov 5 3,600 Nov 10 500 11,530 3,900 Nov 15 Nov 18 Loss on Sale of Window Equipment Debit ($) 1,800 9,730 Balance ($) 11/29 11/30 11/30 Date Credit ($) 4300 11800 900 10,630 Nov 3 180 $180 3000 14800 Nov 19 1,800 8,830 315 15115 8,130 10,530 Nov 22 700 Prepaid Insurance Debit ($) Nov 23 2,400 Credit ($) Balance ($) $2,460 Date Unearned Service Revenue Nov 25 200 Nov 6 2,460 Date Debit ($) Credit ($) Balance ($) 11/26 11/29 11/30 517 11/30 820 1640 Nov 17 900 $900 1800 11/30 315 585 4200 12213 Treasury Stock Debit ($) Credit ($) Balance ($) $810 Date Common Stock Nov 8 810 Allowance for Doubtful Accounts Debit ($) Credit ($) Balance ($) $8,750 Date Debit ($) Credit ($) Balance ($) Date Nov 1 8,750 11/30 150 150 Accounts Payable Debit ($) 11/30 392 242 Balance ($) $950 Date Credit ($) Paid in Capital- Common Stock Debit ($) Nov 3 950 Balance ($) $4,250 Date Credit ($) 11/4 Bad Debt Exp 150 Nov 1 4,250 Nov 9 500 $300 11/30 392 Bal 392 Notes Payable Debit ($) Credit ($) Balance ($) $7,500 Date Depreciation Exp Wages Expense Debit ($) Nov 1 7,500 Credit ($) 11/30 74 Balance ($) $1,800 Date Nov 13 Nov 20 1,800 Bal 74 Floor Equipment 1,800 $3,600 Debit ($) Credit ($) Balance ($) $4,820 Date 11/29 1800 5400 Accumulated Nov 1 4,820 Depreciation 11/30 720 6120 11/30 74 Window Equipment Bal 74 Date Debit ($) Credit ($) Balance ($) Accounts Receivable Nov 1 Nov 6 4,180 $4,180 Debit ($) Credit ($) Balance ($) $3,600 $7,500 $5,100 Date Insurance Expense 4,180 Nov 15 3,600 11/30 820 Nov 22 3,900 Bal 820 Internet Expense 2,400 Nov 23 +
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