Connect Access Card For Fundamental Accounting Principles
Connect Access Card For Fundamental Accounting Principles
24th Edition
ISBN: 9781260158526
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 4, Problem 1APSA
To determine

Concept Introduction:

General Ledger:

The accounts use to organize all the transactions of a business organization are termed as general ledger accounts.

Requirement 1:

Apply balance column format to prepare each ledger account.

Expert Solution
Check Mark

Answer to Problem 1APSA

Format of balance column ledger account

    DateDescriptionDebitCreditBalance

Explanation of Solution

The balance column format of ledger account keeps track of balancing amount remaining in the account on each transaction.

To determine

Concept Introduction:

Journal Entries:

Journal entries are medium of recording the financial transactions which occurred during an accounting year.

Requirement 2:

Journalizing the transaction which occurred during April and posting them to the ledger accounts.

Expert Solution
Check Mark

Answer to Problem 1APSA

    AccountsBalance
    Cash$27,000
    Accounts Receivable$0
    Office Supplies$1,000
    Prepaid Insurance$2,400
    Computer Equipment$20,000
    Accumulated Depreciation − Computer Equipment$0
    Salaries Payable$0
    J. Nozomi, Capital$50,000
    J. Nozomi, Withdrawals$1,500
    Commission Earned$8,000
    Depreciation Expense − Computer Equipment$0
    Salaries Expense$3,200
    Insurance Expense$0
    Rent Expense$1,800
    Office Supplies Expense$0
    Repairs Expense$350
    Telephone Expense$750

Explanation of Solution

Journal Entries

    DateAccountsDebitCredit
    April
    1Cash$30,000
    Computer Equipment20,000
    J. Nozomi, Capital$50,000
    2Rent Expense1,800
    Cash1,800
    3Office Supplies1,000
    Cash1,000
    10Prepaid Insurance2,400
    Cash2,400
    14Salaries Expense1,600
    Cash1,600
    24Cash8,000
    Commission Earned8,000
    28Salaries Expense1,600
    Cash1,600
    29Repair Expense350
    Cash350
    30Telephone Expense750
    Cash750
    30J. Nozomi, Withdrawals1,500
    Cash1,500

Ledger AccountsCash Account No. 101

    DateDescriptionDebitCreditBalance
    April 1J. Nozomi, Capital$30,000$30,000
    2Rent Expense$1,80028,200
    3Office Supplies1,00027,200
    10Prepaid Insurance2,40024,800
    14Salaries Expense1,60023,200
    24Storage Fees Earned8,00031,200
    28Salaries Expense1,60029,600
    29Repair Expense35029,250
    30Telephone Expense75028,500
    30J. Nozomi, Withdrawals1,50027,000
    April 30Balance27,000

Accounts ReceivableAccount No. 106

    DateDescriptionDebitCreditBalance
    April 30Balance0

Office SuppliesAccount No. 124

    DateDescriptionDebitCreditBalance
    April 3Cash$1,000$1,000
    April 30Balance1,000

Prepaid InsuranceAccount No. 128

    DateDescriptionDebitCreditBalance
    April 10Cash$2,400$2,400
    April 30Balance2,400

Computer EquipmentAccount No. 167

    DateDescriptionDebitCreditBalance
    April 1J. Nozomi, Capital$20,000$20,000
    April 30Balance20,000

Accumulated Depreciation − Computer EquipmentAccount No. 168

    DateDescriptionDebitCreditBalance
    April 30Balance0

Salaries PayableAccount No. 209

    DateDescriptionDebitCreditBalance
    April 30Balance0

J. Nozomi, Capital Account No. 301

    DateDescriptionDebitCreditBalance
    April 1Cash$30,000$30,000
    Computer Equipment20,00050,000
    April 30Balance50,000

J. Nozomi, WithdrawalsAccount No. 302

    DateDescriptionDebitCreditBalance
    April 30Cash$1,500$1,500
    April 30Balance1,500

Commission Earned Account No. 405

    DateDescriptionDebitCreditBalance
    April 24Cash$8,000$8,000
    April 30Balance8,000

Depreciation Expense - Computer EquipmentAccount No. 612

    DateDescriptionDebitCreditBalance
    April 30Balance0

Salaries ExpenseAccount No. 622

    DateDescriptionDebitCreditBalance
    April 14Cash$1,600$1,600
    28Cash1,6003,200
    April 30Balance3,200

Insurance Expense Account No. 637

    DateDescriptionDebitCreditBalance
    April 30Balance0

Rent Expense Account No. 640

    DateDescriptionDebitCreditBalance
    April 2Cash$1,800$1,800
    April 30Balance1,800

Office Supplies Expense Account No. 650

    DateDescriptionDebitCreditBalance
    April 30Balance0

Repairs Expense Account No. 684

    DateDescriptionDebitCreditBalance
    April 29Cash$350$350
    April 30Balance350

Telephone Expense Account No. 688

    DateDescriptionDebitCreditBalance
    April 30Cash$750$750
    April 30Balance750

Income Summary Account No. 901

    DateDescriptionDebitCreditBalance
    April 30Balance0
To determine

Concept Introduction:

Unadjusted Trial Balance:

An unadjusted trial balance shows the balances of all the accounts before considering the adjusting entries.

Requirement 3:

To Prepare:

Prepare the unadjusted trial balance as April 30.

Expert Solution
Check Mark

Answer to Problem 1APSA

The total balance of unadjusted trial balance is $58,000.

Explanation of Solution

    ADENTURE TRAVEL.Unadjusted Trial Balance

    April 30, 2018

    AccountsDebitCredit
    Cash$27,000
    Accounts Receivable0
    Office Supplies1,000
    Prepaid Insurance2,400
    Computer Equipment20,000
    Accumulated Depreciation − Computer Equipment0
    Salaries Payable0
    J. Nozomi, Capital$50,000
    J. Nozomi, Withdrawals1,500
    Commission Earned8,000
    Depreciation Expense − Computer Equipment0
    Salaries Expense3,200
    Insurance Expense0
    Rent Expense1,800
    Office Supplies Expense0
    Repairs Expense350
    Telephone Expense750
    Totals58,00058,000
To determine

Concept Introduction:

Adjusting Entries:

An adjusting entry is a journal entry which intends to record the expenses and revenue occurred during the accounting period.

Requirement 4:

Journalizing and posting of adjusting entries for the month.

Expert Solution
Check Mark

Answer to Problem 1APSA

    AccountsBalance
    Accounts Receivable$1,750
    Office Supplies$600
    Prepaid Insurance$2,267
    Accumulated Depreciation − Computer Equipment$500
    Salaries Payable$420
    Commission Earned$9,750
    Depreciation Expense - Computer Equipment$500
    Salaries Expense$3,620
    Insurance Expense$133
    Office Supplies Expense400

Explanation of Solution

    DateAccountsDebitCredit
    April 30
    a)Insurance Expense$133
    Prepaid Insurance$133
    b)Office Supplies Expense400
    Office Supplies400
    c)Depreciation Expense − Computer Equipment500
    Accumulated Depreciation − Computer Equipment500
    d)Salaries Expense420
    Salaries Payable420
    e)Accounts Receivable1,750
    Commission Earned1,750

Accounts ReceivableAccount No. 106

    DateDescriptionDebitCreditBalance
    April 30Balance$0
    4(e)Commission Earned$1,7501,750

Office SuppliesAccount No. 124

    DateDescriptionDebitCreditBalance
    April 30Balance$1,000
    4(b)Office Supplies Expense$400600

Prepaid InsuranceAccount No. 128

    DateDescriptionDebitCreditBalance
    April 30Balance$2,400
    4(a)Insurance Expense$1332,267

Accumulated Depreciation − Computer EquipmentAccount No. 168

    DateDescriptionDebitCreditBalance
    April 30Balance$0
    4(c)Depreciation Expense − Computer Equipment$500500

Salaries PayableAccount No. 209

    DateDescriptionDebitCreditBalance
    April 30Balance$0
    4(d)Salaries Expense$420420

Commission Earned Account No. 405

    DateDescriptionDebitCreditBalance
    April 30Balance$8,000
    4(e)Accounts Receivable$1,7509,750

Depreciation Expense - Computer EquipmentAccount No. 612

    DateDescriptionDebitCreditBalance
    April 30Balance$0
    4(c)Accumulated Depreciation - Computer Equipment$500500

Salaries ExpenseAccount No. 622

    DateDescriptionDebitCreditBalance
    April 30Balance$3,200
    4(d)Salaries Payable$4203,620

Insurance Expense Account No. 637

    DateDescriptionDebitCreditBalance
    April 30Balance$0
    4(a)Prepaid Insurance$133133

Office Supplies Expense Account No. 650

    DateDescriptionDebitCreditBalance
    April 30Balance$0
    4(b)Office Supplies$400400
To determine

Concept Introduction:

Adjusted Trial Balance:

Considering all the expenses and revenue occurred irrespective of whether cash is outstanding or received in advance during an accounting period, the adjusted trial balance shows the accurate balances of all the accounts.

Requirement 5

To Prepare:

Prepare adjusted trial balance, income statement, statement of owner's equity and balance sheet at April 30.

Expert Solution
Check Mark

Answer to Problem 1APSA

    ParticularsAnswers
    Total balance of adjusted trial balance$60,670
    Net income2,197
    Owner's equity balance for the April month50,697
    Total balance of assets and liabilities and owner's equity51,117

Explanation of Solution

    ADENTURE TRAVEL. Adjusted Trial Balance

    April 30, 2018

    AccountsDebitCredit
    Cash$27,000
    Accounts Receivable1,750
    Office Supplies600
    Prepaid Insurance2,267
    Computer Equipment20,000
    Accumulated Depreciation - Computer Equipment$500
    Salaries Payable420
    J. Nozomi, Capital50,000
    J. Nozomi, Withdrawals1,500
    Commission Earned9,750
    Depreciation Expense - Computer Equipment500
    Salaries Expense3,620
    Insurance Expense133
    Rent Expense1,800
    Office Supplies Expense400
    Repairs Expense350
    Telephone Expense750
    Totals60,67060,670
    ADENTURE TRAVELIncome Statement

    April 30, 2018

    Revenue:
    Commission Earned$9,750
    Expenses:
    Depreciation Expense - Computer Equipment500
    Salaries Expense3,620
    Insurance Expense133
    Rent Expense1,800
    Office Supplies Expense400
    Repairs Expense350
    Telephone Expense750
    Total Expense7,553
    Net Income$2,197
    ADENTURE TRAVELStatement of Owner's Equity

    April 30, 2018

    J. Nozomi, Capital; March 31, 2018$0
    Add: Owner Investment during the month50,000
    Net Income2,197
    Subtotal52,197
    Less: J. Nozomi, Withdrawals1,500
    J. Nozomi, Capital; April 30, 2018$50,697
    ADENTURE TRAVELBalance Sheet

    April 30, 2018

    Assets
    Current Assets:
    Cash$27,000
    Accounts Receivable1,750
    Office Supplies600
    Prepaid Insurance2,267
    Total Current Assets$31,617
    Property, Plant and Equipment
    Computer Equipment20,000
    Less: Accumulated Depreciation50019,500
    Total Assets$51,117
    Liabilities and Owner's Equity
    Liabilities
    Current Liabilities:
    Salaries Payable420
    Total Current Liabilities420
    Owner's Equity
    J. Nozomi, Capital; April 30, 2018$50,697
    Total Liabilities and Owner's Equity$51,117
To determine

Concept Introduction:

Closing Entries:

Closing entries intends to close all the temporary accounts and transfer its balances to "income summary account" and then to the owner's capital account. The accounts which are closed at the end of every accounting period are called temporary accounts. Examples: revenue accounts and expenses accounts like salaries, rent, depreciation, insurance, commission expenses, etc.

Requirement 6

To Prepare:

Prepare closing entries to close all the temporary accounts and post them into their concern ledger.

Expert Solution
Check Mark

Answer to Problem 1APSA

    AccountsBalance
    Cash$27,000
    Accounts Receivable$1,750
    Office Supplies$600
    Prepaid Insurance$2,267
    Buildings$20,000
    Accumulated Depreciation − Computer Equipment$500
    Salaries Payable$420
    J. Nozomi, Capital$50,697
    J. Nozomi, Withdrawals$0
    Commission Earned$0
    Depreciation Expense − Computer Equipment$0
    Salaries Expense$0
    Insurance Expense$0
    Rent Expense$0
    Office Supplies Expense$0
    Repairs Expense$0
    Telephone Expense$0
    Income Summary$0

Explanation of Solution

    DateAccountsDebitCredit
    April 30
    a)Commission Earned$9,750
    Income Summary$9,750
    b)Income Summary7,553
    Depreciation Expense − Computer Equipment500
    Salaries Expense3,620
    Insurance Expense133
    Rent Expense1,800
    Office Supplies Expense400
    Repairs Expense350
    Telephone Expense750
    c)Income Summary2,197
    J. Nozomi, Capital2,197
    d)J. Nozomi, Capital1,500
    J. Nozomi, Withdrawals1,500

Commission EarnedAccount No. 405

    DateDescriptionDebitCreditBalance
    April 30Balance$9,750
    6(a)Income Summary$9,7500

Depreciation Expense − Computer Equipment Account No. 612

    DateDescriptionDebitCreditBalance
    April 30Balance$500
    6(b)Income Summary$5000

Salaries ExpenseAccount No. 622

    DateDescriptionDebitCreditBalance
    April 30Balance$3,620
    6(b)Income Summary$3,6200

Insurance Expense Account No. 637

    DateDescriptionDebitCreditBalance
    April 30Balance$133
    6(b)Income Summary$1330

Rent Expense Account No. 640

    DateDescriptionDebitCreditBalance
    April 30Balance$1,800
    6(b)Income Summary$1,8000

Office Supplies Expense Account No. 650

    DateDescriptionDebitCreditBalance
    April 30Balance$400
    6(b)Income Summary$4000

Repairs Expense Account No. 684

    DateDescriptionDebitCreditBalance
    April 30Balance$350
    6(b)Income Summary$3500

Telephone Expense Account No. 688

    DateDescriptionDebitCreditBalance
    April 30Balance$750
    6(b)Income Summary$7500

Income Summary Account No. 901

    DateDescriptionDebitCreditBalance
    April 30Balance$0
    6(a)Commission Earned$9,7509,750
    6(b)Depreciation Expense − Computer Equipment$5009,250
    Salaries Expense3,6205,630
    Insurance Expense1335,497
    Rent Expense1,8003,697
    Office Supplies Expense4003,297
    Repairs Expense3502,947
    Telephone Expense7502,197
    6(c)J. Nozomi, Capital2,1970

J. Nozomi, Capital Account No. 301

    DateDescriptionDebitCreditBalance
    April 30Balance$50,000
    6(c)Income Summary$2,19752,197
    6(d)J. Nozomi, Withdrawals$1,50050,697

J. Nozomi, WithdrawalsAccount No. 302

    DateDescriptionDebitCreditBalance
    April 30Balance$1,500
    6(d)J. Nozomi, Capital$1,5000
To determine

Concept Introduction:

The trial balance which is prepare after closing all the temporary accounts are termed as post-closing trial balance.

Requirement 7

To Prepare:

Prepare the post-closing trial balance?

Expert Solution
Check Mark

Answer to Problem 1APSA

The total balance of post-closing trial balance is $51,617.

Explanation of Solution

    ADENTURE TRAVELPost-Closing Trial Balance

    April 30, 2018

    AccountsDebitCredit
    Cash$27,000
    Accounts Receivable1,750
    Office Supplies600
    Prepaid Insurance2,267
    Buildings20,000
    Accumulated Depreciation − Computer Equipment$500
    Salaries Payable420
    J. Nozomi, Capital50,697
    J. Nozomi, Withdrawals0
    Commission Earned0
    Depreciation Expense − Computer Equipment0
    Salaries Expense0
    Insurance Expense0
    Rent Expense0
    Office Supplies Expense0
    Repairs Expense0
    Telephone Expense0
    Income Summary0
    Totals51,61751,617

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Chapter 4 Solutions

Connect Access Card For Fundamental Accounting Principles

Ch. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 16DQCh. 4 - Prob. 17DQCh. 4 - Prob. 1QSCh. 4 - Preparing a work sheet P1 In the blank space...Ch. 4 - Computing ending capital balance using work sheet...Ch. 4 - Preparing a partial work sheet P1 The ledger of...Ch. 4 - Explaining temporary and permanent accounts Choose...Ch. 4 - Preparing closing entries from the ledger P2 The...Ch. 4 - Identifying post-closing accounts P3 Identify...Ch. 4 - Identifying the accounting cycle C2 List the...Ch. 4 - Classifying balance sheet items C3 The following...Ch. 4 - Preparing financial statements C2 Use the...Ch. 4 - Preparing a classified balance sheet C3 Use the...Ch. 4 - Identifying current accounts and computing the...Ch. 4 - Prob. 13QSCh. 4 - Exercise 4-1 Extending adjusted account balances...Ch. 4 - Exercise 4-2 Extending accounts in a work sheet Pl...Ch. 4 - Exercise 4-3 Preparing adjusting entries from a...Ch. 4 - Exercise 4-4 Preparing unadjusted and adjusted...Ch. 4 - Exercise 4-5 Determining effects of closing...Ch. 4 - Exercise 4-6 Completing the income statement...Ch. 4 - Exercise 4-7 Preparing a work sheet and recording...Ch. 4 - Exercise 4-8 Preparing and posting closing...Ch. 4 - Exercise 4-9 Preparing closing entries and a...Ch. 4 - Exercise 4-10 Preparing closing entries and a...Ch. 4 - Prob. 11ECh. 4 - Exercise 4-12 Preparing a classified balance sheet...Ch. 4 - Exercise 4-13 Computing the current ratio A1 Use...Ch. 4 - Exercise 4-14 Preparing closing entries P2...Ch. 4 - Exercise 4-15 Computing and analysing the current...Ch. 4 - Exercise 4.16A Preparing reversing entries P4 Hawk...Ch. 4 - Exercise 4-17APreparing reversing entries P4 The...Ch. 4 - Problem 4-1A Applying the accounting cycle C2 P2...Ch. 4 - Problem 4-2A Preparing a work sheet, adjusting and...Ch. 4 - Problem 4-3A Determining balance sheet...Ch. 4 - Problem 4-4A Preparing closing entries, financial...Ch. 4 - Problem 4-5A Preparing trial balances, closing...Ch. 4 - Problem 4-6AA Preparing adjusting, reversing, and...Ch. 4 - Problem 4-1B Applying the accounting cycle C2 P2...Ch. 4 - Prob. 2BPSBCh. 4 - Problem 4-3B Determining balance sheet...Ch. 4 - Prob. 4BPSBCh. 4 - Problem 4-5B Preparing trial balances, closing...Ch. 4 - Problem 4-6BAPreparing adjusting, reversing, and...Ch. 4 - The December 31. 2019= adjusted trial balance of...Ch. 4 - Transactions from the Fast Forward illustration in...Ch. 4 - Prob. 2GLPCh. 4 - Prob. 3GLPCh. 4 - Based on Problem 4-6ACh. 4 - Prob. 5GLPCh. 4 - Refer to Apple' s financial statements in Appendix...Ch. 4 - Prob. 2AACh. 4 - Prob. 3AACh. 4 - Prob. 1BTNCh. 4 - Prob. 2BTNCh. 4 - Prob. 3BTNCh. 4 - The unadjusted trial balance and information for...Ch. 4 - Prob. 5BTNCh. 4 - Prob. 6BTN
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