EBK HORNGREN'S ACCOUNTING
12th Edition
ISBN: 9780134487212
Author: MILLER-NOBLES
Publisher: PEARSON CO
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 4, Problem E4.25E
Preparing closing entries from an adjusted
Mark’s Bowling Alley’s adjusted trial balances as of December 31, 2018 is presented below.
Requirements
- Prepare the closing entries for Mark's Bowling Alley.
- Prepare a post-closing trial balance.
- 2. Compute the current ratio for Mark's Bowling Alley.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
S3-5. (Learning Objective 2: Apply the revenue and expense recognition principles)Identify the accounting concept or principle that gives the most direction on how to account foreach of the following situations:a. A utility bill is received on December 27 and will be paid next year. When should thecompany record utility expense?b. A physician performs a surgical operation and bills the patient’s insurance company. Itmay take three months to collect from the insurance company. Should the physicianrecord revenue now or wait until cash is collected?c. March has been a particularly slow month, and the business will have a net loss for thesecond quarter of the year. Management is considering not following its customarypractice of reporting quarterly earnings to the public.d. Salary expense of $48,000 is accrued at the end of the period to measure incomeproperly.e. A construction company is building a highway system, which will take four years.When should the company record the revenue it…
Preparing closing entries from an adjusted trial balance; preparing a post-closing trial balance; and calculating the current ratio
Mark’s Bowling Alley’s adjusted trial balance as of December 31, 2018, is presented below:
Requirements
Prepare the closing entries for Mark’s Bowling Alley.
Prepare a post-closing trial balance.
Compute the current ratio for Mark’s Bowling Alley.
Preparing operating activities using the direct method
Amy’s Learning Center has assembled the following data for the year ended June 30, 2018:
Prepare the operating activities section of the business’s statement year ended June 30,2018, using the direct method.
Chapter 4 Solutions
EBK HORNGREN'S ACCOUNTING
Ch. 4 - Assets are listed on the balance sheet in the...Ch. 4 - Which of the following accounts would be included...Ch. 4 - Which situation indicates a net loss within the...Ch. 4 - Which of the following accounts is not closed?...Ch. 4 - What do closing entries accomplish? Learning...Ch. 4 - Which of the following is not a closing entry?...Ch. 4 - Which of the following accounts may appear on a...Ch. 4 - 8. Which of the following steps of the accounting...Ch. 4 - Clean Water Softener Systems has Cash of $600,...Ch. 4 - Which of the following statements concerning...
Ch. 4 - What document are financial statements prepared...Ch. 4 - What does the income statement report?Ch. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - Why are financial statements prepared in a...Ch. 4 - Prob. 6RQCh. 4 - Prob. 7RQCh. 4 - Prob. 8RQCh. 4 - Prob. 9RQCh. 4 - How could a worksheet help in preparing financial...Ch. 4 - If a business had a net loss for the year, where...Ch. 4 - Prob. 12RQCh. 4 - What are temporary accounts? Are temporary...Ch. 4 - What are permanent accounts? Are permanent...Ch. 4 - How is the Income Summary account used? Is it a...Ch. 4 - Prob. 16RQCh. 4 - If a business had a net loss for the year, what...Ch. 4 - What types of accounts are listed on the...Ch. 4 - Prob. 19RQCh. 4 - What is the current ratio, and how is it...Ch. 4 - Prob. 21ARQCh. 4 - Preparing an income statement Learning Objective 1Ch. 4 - Preparing a statement of owner’s equity. Learning...Ch. 4 - Preparing a balance sheet (unclassified, account...Ch. 4 - Preparing a balance sheet (classified, report...Ch. 4 - Classifying balance sheet accounts Learning...Ch. 4 - Prob. S4.6SECh. 4 - Prob. S4.7SECh. 4 - Determine net loss using a worksheet Learning...Ch. 4 - Identifying temporary and permanent accounts...Ch. 4 - Prob. S4.10SECh. 4 - Posting closing entries directly to Taccounts...Ch. 4 - S412 Identifying accounts included on a...Ch. 4 - Identifying steps in the accounting cycle Learning...Ch. 4 - Calculating the current ratio Learning Objective 6...Ch. 4 - Journalizing reversing entries Learning Objective...Ch. 4 - E416 Preparing the financial statements The...Ch. 4 - Classifying balance sheet accounts Learning...Ch. 4 - Preparing a classified balance sheet and...Ch. 4 - Preparing a worksheet Learning Objective 2: Title...Ch. 4 - Preparing financial statements from the completed...Ch. 4 - Preparing closing entries from an adjusted trial...Ch. 4 - Preparing closing entries from T-accounts Learning...Ch. 4 - Determining the effects of closing entries on the...Ch. 4 - Preparing a worksheet and closing entries Learning...Ch. 4 - Preparing closing entries from an adjusted trial...Ch. 4 - Preparing a worksheet, closing entries, and a...Ch. 4 - Journalizing reversing entries. Learning Objective...Ch. 4 - Journalizing reversing entries Leaning Objectives...Ch. 4 - Preparing financial statements including a...Ch. 4 - Preparing financial statements including a...Ch. 4 - Preparing a worksheet, financial statements, and...Ch. 4 - Completing the accounting cycle from adjusting...Ch. 4 - Completing the accounting cycle from journal...Ch. 4 - Preparing adjusting entries and reversing entries...Ch. 4 - Preparing financial statements including a...Ch. 4 - Preparing financial statements including a...Ch. 4 - Preparing a worksheet financial statements, and...Ch. 4 - Completing the accounting cycle from adjusting...Ch. 4 - Completing the accounting cycle from journal...Ch. 4 - Preparing adjusting entries and reversing entries...Ch. 4 - Using Excel to prepare financial statements,...Ch. 4 - Completing the accounting cycle from adjusted...Ch. 4 - Completing the accounting cycle from adjusted...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - COMPREHENSIVE PROBLEMS Comprehensive Problem 1 for...Ch. 4 - Comprehensive Problem 2 for Chapters 1 —4 This...Ch. 4 - Comprehensive Problem 2 for Chapters 1 —4 This...Ch. 4 - Comprehensive Problem 2 for Chapters 1 4 This...Ch. 4 - Comprehensive Problem 2 for Chapters 1 4 This...Ch. 4 - Comprehensive Problem 2 for Chapters 1 4 This...Ch. 4 - Comprehensive Problem 2 for Chapters 1 4 This...Ch. 4 - Comprehensive Problem 2 for Chapters 1 4 This...Ch. 4 - Comprehensive Problem 2 for Chapters 1 4 This...Ch. 4 - Prob. 4.1TIATCCh. 4 - Prob. 4.1EICh. 4 - Prob. 4.1FSC
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
- Prepare the Post-Closing Trial Balance for Smart Touch Learning for December. Check your spelling carefully and do not abbreviate. Enter the account names exactly as provided in the account chart. Enter accounts in the order Assets, Liabilities, Equity, Revenues, and Expenses. ACCOUNT BALANCE Accounts Receivable 1,700 Accumulated Depreciation - Furniture 200 Cash 35,270 Common Stock 36,800 Furniture 13,400 Office Supplies 290 Prepaid Insurance 1,350 Retained Earnings 7,010 Salaries Payable 4,600 Unearned Revenue 3,400 Adjusted Trial BalanceDecember 31, 2016Month ended December 31, 2016Post-Closing Trial BalanceSmart Books LearningSmart Touch LearningUnadjusted Trial Balance Adjusted Trial BalanceDecember 31, 2016Month ended December 31, 2016Post-Closing Trial BalanceSmart Books LearningSmart Touch LearningUnadjusted Trial Balance Adjusted Trial BalanceDecember 31, 2016Month ended December 31, 2016Post-Closing Trial BalanceSmart Books…arrow_forwardPrepare the Adjusted Trial Balance for Smart Touch Learning for December. Check your spelling carefully and do not abbreviate. Enter account names exactly as provided in the account chart. Enter accounts in the order Assets, Liabilities, Equity, Revenues, and Expenses. ACCOUNT VALUE Accounts Receivable 1,700 Accumulated Depreciation - Furniture 200 Cash 35,270 Common Stock 36,800 Depreciation Expense - Furniture 200 Dividends 4,200 Furniture 13,400 Insurance Expense 450 Office Supplies 290 Prepaid Insurance 1,350 Rent Expense 2,000 Salaries Expense 6,600 Salaries Payable 4,600 Service Revenue 20,800 Supplies Expense 110 Unearned Revenue 3,400 Utilities Expense 230 Adjusted Trial BalanceDecember 31, 2016Month ended December 31, 2016Smart Books LearningSmart Touch LearningUnadjusted Trial Balance Adjusted Trial BalanceDecember 31, 2016Month ended December 31, 2016Smart Books LearningSmart Touch LearningUnadjusted Trial Balance…arrow_forwardP3-59A. (Learning Objective 3: Adjust the accounts) Journalize the adjusting entry neededon December 31, the end of the current accounting period, for each of the following independent cases affecting Castaway Corporation. Include an explanation for each entry.a. The details of Prepaid Insurance are as follows:Prepaid Insurance2,9004,000JanMar 311 BalCastaway prepays insurance on March 31 each year. At December 31, $1,700 is still prepaid.b. Castaway pays employees each Friday. The amount of the weekly payroll is $6,100 fora five-day work week. The current accounting period ends on a Wednesday.c. Castaway has a note receivable. During the current year, Castaway has earned accruedinterest revenue of $700 that it will collect next year.d. The beginning balance of supplies was $3,000. During the year, Castaway purchasedsupplies costing $6,200, and at December 31 supplies on hand total $2,200.e. Castaway is providing services for Blue Whale Investments, and the owner of BlueWhale paid…arrow_forward
- E3-21 Journalizing adjusting entries Learning Objective 3 Consider the following situations: Business receives $3,200 on January 1 for 10-month service contract for the period January 1 through October 31. Total salaries for all employees is $3,600 per month. Employees are paid on the 1st and 15th of the month. Work performed but not yet billed to customers for the month is $1,600. The company pays interest on its $16,000, 4% note payable of $53 on the first day of each month. Assume the company records adjusting entries monthly. Journalize the adjusting entries needed as of January 31.arrow_forward. (Learning Objective 5: Make closing entries and calculate net income) The adjustedtrial balance of Amana Corporation at December 31 shows that sales revenue for the year was$513,000 and other revenue was $37,000. Cost of goods sold for that same period was $256,000,while other expenses totaled $185,000. The corporation declared and paid dividends of $12,000during the year. The balance of retained earnings before closing entries was $457,000.1. Prepare the closing entries for revenues, expenses, and dividends for the year.2. What was net income for the year?3. What is the ending balance of retained earnings after the closing entries are posted?arrow_forwardPrepare the financial statements for Smart Touch Learning for the month of December. Remember that the business started operations this month so all beginning balances were zero. For the Statement of Retained Earnings and the Balance Sheet, enter any decreases with a minus sign or parentheses. Check your spelling carefully and do not abbreviate. Enter account names exactly as provided in the adjusted trial balance. SMART TOUCH LEARNING Adjusted Trial Balance December 31, 2016 Balance Account Title Debit Credit Cash 35,270 Accounts Receivable 1,700 Office Supplies 290 Prepaid Insurance 1,350 Furniture 13,400 Accumulated Depreciation - Furniture 200 Salaries Payable 4,600 Unearned Revenue 3,400 Common Stock 36,800 Dividends 4,200 Service Revenue 20,800 Salaries Expense 6,600 Depreciation Expense - Furniture 200 Insurance Expense 450 Utilities Expense 230 Rent Expense 2,000 Supplies Expense 110 Total…arrow_forward
- The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts. Note: You must complete parts 1, 2 and 3 before completing parts 4 and 6. Please note that part 5 is optional. Part 4: At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). a. Insurance expired during May is $275.b. Supplies on hand on May 31 are $715.c. Depreciation of office equipment for May is $330.d. Accrued receptionist salary on May 31 is $325.e. Rent expired during May is $1,600.f. Unearned fees on May 31 are $3,210. Part 6: Journalize the adjusting entries. Then, post the entries to the attached spreadsheet from part 2.arrow_forwardE3-33B. (Learning Objectives 3, 4: Adjust the accounts for prepaid expenses; construct thefinancial statements) Fairmount Co. prepaid three years’ rent ($31,500) on January 1, 2018. AtDecember 31, 2018, Fairmount prepared a trial balance and then made the necessary adjustingentry at the end of the year. Fairmount adjusts its accounts once each year—on December 31.What amount appears for Prepaid Rent ona. Fairmount’s unadjusted trial balance at December 31, 2018?b. Fairmount’s adjusted trial balance at December 31, 2018?What amount appears for Rent Expense onc. Fairmount’s unadjusted trial balance at December 31, 2018?d. Fairmount’s adjusted trial balance at December 31, 2018?arrow_forwardJournalize Smart Touch Learning's closing entries for December 31 in RED order. Record debits first, then credits. Check your spelling carefully and do not abbreviate. Enter account names exactly as provided in the adjusted trial balance. Select the dates from the dropdown provided. SMART TOUCH LEARNING Adjusted Trial Balance December 31, 2016 Balance Account Title Debit Credit Cash 35,270 Accounts Receivable 1,700 Office Supplies 290 Prepaid Insurance 1,350 Furniture 13,400 Accumulated Depreciation - Furniture 200 Salaries Payable 4,600 Unearned Revenue 3,400 Common Stock 36,800 Retained Earnings 0 Dividends 4,200 Service Revenue 20,800 Salaries Expense 6,600 Depreciation Expense - Furniture 200 Insurance Expense 450 Utilities Expense 230 Rent Expense 2,000 Supplies Expense 110 Total 65,800 65,800 Date Accounts Debit Credit Nov. 15Nov. 30Dec. 15Dec. 31…arrow_forward
- (Learning Objective 3: Adjust the accounts) Answer the following questions aboutprepaid expenses:a. On March 1, Meadow Tree Service prepaid $7,200 for six months’ rent. Give theadjusting entry to record rent expense at March 31. Include the date of the entry and anexplanation. Then post all amounts to the two accounts involved, and show their balancesat March 31. Meadow adjusts the accounts only at March 31, the end of its fiscal year.b. On March 1, Meadow Tree Service paid $1,050 for supplies. At March 31, Meadow has$400 of supplies on hand. Make the required journal entry at March 31. Then post allamounts to the accounts and show their balances at March 31. Assume no beginningbalance in suppliesarrow_forwardE3-25A. (Learning Objective 5: Close the books) Prepare the closing entries from thefollowing selected accounts from the records of North Pole Enterprises at December 31, 2018:Cost of services sold............ $14,800Accumulated depreciation... 41,100Selling, general, andadministrative expenses.... 6,200Retained earnings,December 31, 2017......... 2,000Service revenue....................... $32,200Depreciation expense ............. 4,100Other revenue ........................ 1,000Dividends declared................. 500Income tax expense ................ 900Income tax payable ................ 600How much net income did North Pole Enterprises earn during 2018? Prepare a T-account forRetained Earnings to show the December 31, 2018, balance of Retained Earningsarrow_forwardE3-22A. (Learning Objectives 3, 4: Adjust the accounts for prepaid expenses; construct thefinancial statements) Dizzy Toys prepaid three years’ rent ($36,000) on January 1, 2018. AtDecember 31, 2018, Dizzy prepared a trial balance and then made the necessary adjusting entryat the end of the year. Dizzy adjusts its accounts once each year—on December 31.What amount appears for Prepaid Rent ona. Dizzy’s unadjusted trial balance at December 31, 2018?b. Dizzy’s adjusted trial balance at December 31, 2018?What amount appears for Rent Expense onc. Dizzy’s unadjusted trial balance at December 31, 2018?d. Dizzy’s adjusted trial balance at December 31, 2018?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
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