FUND ACCOUNTING PRINCIPLES BUNDLE
25th Edition
ISBN: 9781265380311
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 4, Problem 6E
Exercise 4-6
Completing the income statement columns and preparing closing entries
P1 P2
These partially completed Income Statement columns from a 10-column work sheet are for Brown’s Bike Rental Company. (1) Use the information to determine the amount that should be entered on the net income line of the work sheet. (2) Prepare the company’s closing entries.
The owner, H. Brown, did not make any withdrawals this period.
Check Net income. $25.600
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
4 Homework
Following are Income Statement columns from a 10-column work sheet for Brown's Bike Rental Company.
Account Title
Rental revenue
Salaries expense
Insurance expense
Supplies expense
Bike repair expense
Depreciation expense-Bikes
Debit
Saved
50,616
7,182
16,758
3,534
21,774
Required 1 Required 2
Exercise 4-6 (Algo) Completing the income statement columns and preparing closing entries LO
P1, P2
Credit
114,000
Complete this question by entering your answers in the tabs below.
Prev
Help
(1) Determine the amount that should be entered on the net income line of the work sheet.
(2) Prepare the company's closing entries. The owner, H. Brown, did not make any withdrawals this period.
Prepare the company's closing entries. The owner, H. Brown, did not make any withdrawals this period.
Save & Exit
3 of 10 www Next
Subm
Check my work
Journal Entries for Credit Losses At the beginning of the year, Whitney Company had the following accounts on its books:
Accounts Receivable
$130,000 Debit
Allowance for Doubtful Accounts
$8,000 Credit
During the year, credit sales were:
and collections on account were:
$1,173,000
$1,175,000
The following transactions, among others, occurred during the year:
Feb.17 Wrote off R. Lowell's account,
May.28 Wrote off G. Boyd's account,
Oct. 13
Received $600 from G. Boyd, who is in bankruptcy proceedings,
in final settlement of the account written off on May 28.
This amount is not included in the $1,175,000 collections.
Wrote off K. Marshall's account.
Dec. 15
Dec.31 In an adjusting entry, recorded the allowance for doubtful accounts at
of credit sales for the year.
$4,000
$2,400
$1,600
0.9%
a. Prepare journal entries to record the credit sales, the collections on account, and the preceding transactions and adjustment.
b. Show how Accounts Receivable and the Allowance for Doubtful Accounts…
Notes Receivable
Crowne Cleaning provides cleaning services for Amber Inc., a business with four buildings. Crowne assigned different cleaning charges for each building based on the amount of square feet to be cleaned. The charges for the four buildings are $87,600, $82,200, $102,000, and $62,400. Amber secured this amount by signing a note bearing 10% interest on June 1.
Required:
Question Content Area
1. Prepare the journal entry to record the sale on June 1. If an amount box does not require an entry, leave it blank.
blank
- Select -
- Select -
- Select -
- Select -
Question Content Area
2. Determine how much interest Crowne will receive if the note is repaid on December 1.$fill in the blank 59d6dd028fbe01b_1
Question Content Area
3. Prepare Crowne’s journal entry to record the cash received to pay off the note and interest on December 1. If an amount box does not require an entry, leave it blank.
blank
- Select -
- Select…
Chapter 4 Solutions
FUND ACCOUNTING PRINCIPLES BUNDLE
Ch. 4 - Prob. 1QSCh. 4 - Prob. 2QSCh. 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 - Prob. 7QSCh. 4 - Prob. 8QSCh. 4 - Prob. 9QSCh. 4 - Prob. 10QS
Ch. 4 - Prob. 11QSCh. 4 - Prob. 12QSCh. 4 - Prob. 13QSCh. 4 - Prob. 14QSCh. 4 - Prob. 15QSCh. 4 - Prob. 16QSCh. 4 - Prob. 17QSCh. 4 - Prob. 18QSCh. 4 - Prob. 19QSCh. 4 - Prob. 20QSCh. 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. 2PSBCh. 4 - Problem 4-3B Determining balance sheet...Ch. 4 - Prob. 4PSBCh. 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. 1DQCh. 4 - That accounts are affected by closing entries?...Ch. 4 - Prob. 3DQCh. 4 - What is the purpose of the Income Summary account?Ch. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - Why are the debit and credit entries in the...Ch. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - How is unearned revenue classified on the balance...Ch. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 1BTNCh. 4 - Prob. 2BTNCh. 4 - Prob. 3BTNCh. 4 - The unadjusted trial balance and information for...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Question 1 Assets Name It is the first day of the month. Record the impact of the following transactions in a journal using the equation method: A customer pays $1,000 for work that you completed last month and you reduce the balance of their account. You purchase furniture worth $6,100 by signing a note payable with a 12% annual interest rate; Even though you had not received a bill, last month you accrued a utilities expense of $1,800, when the bill arrives today you realize that your estimate was correct. When this is complete, also record all adjusting entries that would be needed at the end of the month in order to report financial statements. The furniture has a useful life of 5 years and no salvage value. At some point during the month you paid the utility bill. You estimate that you used $1,100 of utilities this month. Amount = Liabilities Name Amount + Equity Contributed Name Amount Earned Name Amountarrow_forwardCycle Project 6b. Post the journal entries to the ledger. 7. Prepare a post-closing trial balance. Complete this question by entering your answers in the tabs below. Req 1 and 2 Revenues: Expenses: Total expenses Reg 3 Prepare the income statement for the month of April 30. to search Reg 4 Adj Entries Req 4 Adj Trial Bal ADVENTURE TRAVEL Income Statement For Month Ended April 30 Req 5A 1 of 1 Reg 6A 4 Req 6B GL Next > Req 7arrow_forwardSection 9.4 Exercises I. Shown below is the completed work sheet for Dr. E. Santala of Cornwall. Ontario. In your Workbook, journalize the adjusting and closing entries for Dr. Santala. Dr. E. Santala, Dentist Work Sheet Year Ended Dec. 31, 20-4 TRIAL BALANCE ADJUSTMENTS INCOME STATEMENT BALANCE SHEET ACCOUNTS DR CR DR CR DR CR DR CR 1306010 37490- 13060 10 37490- 10350 5906 Bank Accounts Receivable 07250 24050 Supplies Prepaid Insurance Equipment Investment- Bonds Accounts Payable GST Payable 3100 1856 6443417 100000- 6443417 100000 3315 1050 3315- 1050- 690 2043 1577 GST Recoverable 690- 2043 1577 E. Santala, Capital E. Santala, Drawings Fees Earned Interest Earned 80000 - 80000- 180374- 7500 02500 180374- 10000 170 Bank Charges Expense Miscellaneous Expense Rent Expense Telephone Expense Utilities Expense Wages & Salaries Expense 170 143650 143650 30 000 30 000 2759 - 2759 2957 - 2957 47 302 47 302- 396 55477 39655477 07250 24050 7250- Supplies Expense Insurance Expense 4050 2500…arrow_forward
- How do I record the current entry? (The second picture is for reference)arrow_forwardProblem 8: From the following receipt and payment account of Edhi Centre, prepare an income and expenditure account for the year ended 31-12-2023 and a Balance sheet as on that date. Particulars Balance b/d Entrance fee Subscription 2022 2023 2024 Locker rent Miscellaneous Adjustments: Receipt and payment account For the year ended 31-12-2023 Dr.(AED) Particulars Cr. (AED) 130 Rates 2,500 210 Stationery 340 General expenses 3,610 70 Building (Purchased on 1- 2,500 7-2023) 10,520 Repairs 300 420 Mortgage interest 1,600 300 Balance c/d 2,460 1,660 13,310 13,310 1. Locker rent AED 20 referred to the previous year and AED 30 is still owing. 2. Rates AED 20 referred to the previous year and AED 500 is still owing. 3. Subscription unpaid for the current year AED 200. 4. Depreciate building by 5% p.a. ||arrow_forwardHomework Question 6arrow_forward
- Thank you for your helparrow_forwardWindow Help A education.wi am 1 WP NWP Assessment Player UI Application Question 28 of 42 View Policies Current Attempt in Progress In a service-type business, revenue is considered recognized when the service is performed. at the end of the year. at the end of the month. when cash is received. Save for Laterarrow_forwardMultiple Select Question Select all that apply On Jan. 2, Callie Company purchased $300 worth of supplies. She paid $100 immediately and put the rest on credit. The journal entry to record this transaction in Callie Company's books would include which of the following? (Check all that apply.) Credit the Cash account for $100. Debit the Supplies account for $100. Credit Accounts payable for $200. Debit the Cash account for $100. Debit the Accounts payable account for $200. Debit the Supplies account for $300. Rate your confidence to submit your answer High Medium .Low Readingarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY