2.
Journalize the
2.
Explanation of Solution
Journalizing: Journalizing is a process of recording the financial transactions of a business in a chronological order. Based on the recorded entries, the accounts are posted to the relevant ledger accounts.
Record office supplies used:
General Journal | Page 3 | |||
Date | Account Title and Explanation | Post Ref. |
Debit ($) |
Credit ($) |
December 31, 2019 | Supplies expense | 3,000 | ||
Supplies | 3,000 | |||
(To record supplies used) |
Table (1)
- Since supplies expense is an expense, expenses are increased. Hence, supplies expense is debited.
- Since supplies are asset, assets are decreased. Hence, supplies account is credited.
Record expire advertising expense:
General Journal | Page 3 | |||
Date | Account Title and Explanation | Post Ref. |
Debit ($) |
Credit ($) |
December 31, 2019 | Advertising expense | 1,200 | ||
Prepaid advertising | 1,200 | |||
(To record expired advertising expense) |
Table (2)
- Advertising expense is an expense and expenses are increased. Hence, advertising expense is debited.
- Prepaid advertising is an asset and assets are decreased. Hence, prepaid advertising is credited.
Record
General Journal | Page 3 | |||
Date | Account Title and Explanation | Post Ref. |
Debit ($) |
Credit ($) |
December 31, 2019 | Depreciation expense | 1,500 | ||
Accumulated depreciation | 1,500 | |||
(To record depreciation expense) |
Table (3)
- Depreciation expense is an expense and expenses are increased. Hence, depreciation expense is debited.
- Accumulated depreciation-equipment is a contra-asset and it is increased. Hence, Accumulated depreciation-equipment is credited.
3.
Journalize the closing entries.
3.
Explanation of Solution
General Journal | Page 4 | |||
Date | Account Title and Explanation | Post Ref. |
Debit ($) |
Credit ($) |
December 31, 2019 | Fees income | 46,800 | ||
Income summary | 46,800 | |||
(To close fees income) |
Table (4)
- Fees income is revenue account and it is closed at the end of the year. Hence, fees income account is debited.
- Since the amount of fees income transferred to income summary, the account of income summary increases. Hence, income summary account is credited.
General Journal | Page 4 | |||
Date | Account Title and Explanation | Post Ref. |
Debit ($) |
Credit ($) |
December 31, 2019 | Income summary | 21,900 | ||
Depreciation expense | 1,500 | |||
Salaries expense | 14,400 | |||
Supplies expense | 3,000 | |||
Utilities expense | 1,800 | |||
Advertising expense | 1,200 | |||
(To close expenses account) |
Table (5)
- The expenses account balances are transferred to the income summary account, to bring the expenses account balances to zero. Thus, income summary is debited.
- Depreciation expense is an expense and expenses are decreased. Hence, depreciation expense is credited.
- Salaries expense is an expense and expenses are decreased. Hence, salaries expense is credited.
- Supplies expense is an expense and expenses are decreased. Hence, supplies expense is credited.
- Utilities expense is an expense and expenses are decreased. Hence, utilities expense is credited.
- Advertising expense is an expense and expenses are decreased. Hence, advertising expense is credited.
General Journal | Page 4 | |||
Date | Account Title and Explanation | Post Ref. |
Debit ($) |
Credit ($) |
December 31, 2019 | Income summary | 24,900 | ||
SJ Capital | 24,900 | |||
(To close the amount of income summary) |
Table (6)
- The amount of income summary is decreased. Hence, the income summary account is debited.
- The capital account increases. Hence, the SJ capital gets credited.
General Journal | Page 4 | |||
Date | Account Title and Explanation | Post Ref. |
Debit ($) |
Credit ($) |
December 31, 2019 | SJ Capital | 8,400 | ||
SJ Drawings | 8,400 | |||
(To close the amount of drawing account) |
Table (7)
- The amount of drawings adjusted from the capital account, the amount of capital account decreases. Hence the account of SJ Capital debited.
- The account of drawings increases. Hence, the SJ Drawings gets credited.
1, 2 and 3.
Record the balance as of December 31, 2019 in the ledger accounts and
1, 2 and 3.
Explanation of Solution
Record the balance as of December 31, 2019 in the ledger accounts and post the adjusting entries and closing entries.
Supplies Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Balance | 6,000 (debit) | ||
Adjusting | 3,000 | 3,000 (Debit) |
Table (8)
Prepaid Advertising Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Balance | 9,000 (debit) | ||
Adjusting | 1,200 | 7,800 (debit) |
Table (9)
Accumulated Depreciation Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Adjusting | 1,500 | 1,500 (credit) | |
Table (10)
SJ Capital Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Balance | 82,200 (credit) | ||
Closing | 24,900 | 107,100 (credit) | ||
Closing | 8,400 | 98,700 (credit) |
Table (11)
SJ Drawings Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Balance | 8,400 (debit) | ||
Closing | 8,400 | - |
Table (12)
Income Summary Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Closing | 46,800 | 46,800 (credit) | |
Closing | 21,900 | 24,900 (credit) | ||
Closing | 24,900 | - |
Table (13)
Fees Income Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Balance | 46,800 (credit) | ||
Closing | 46,800 | - |
Table (14)
Salaries Expense Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Balance | 14,400 (debit) | ||
Closing | 14,400 | - |
Table (15)
Utilities Expense Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Balance | 1,800 (debit) | ||
Closing | 1,800 | - |
Table (16)
Supplies Expense Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Balance | 3,000 | 3,000 (debit) | |
Closing | 3,000 | - |
Table (17)
Depreciation Expense Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Balance | 1,500 | 1,500 (debit) | |
Closing | 1,500 | - |
Table (18)
Advertising Expense Account | ||||
Date | Particular |
Debit ($) |
Credit ($) |
Balance ($) |
December 31, 2019 | Adjusting | 1,200 | 1,200 (debit) | |
Closing | 1,200 | - |
Table (19)
4.
Prepare a post-closing
4.
Explanation of Solution
Trial balance of Company CV is given below:
Company CV Post-closing Trial Balance December 31, 2019 | ||
Account Title |
Debit ($) |
Credit ($) |
Cash | 32,400 | |
6,000 | ||
Supplies | 3,000 | |
Prepaid Advertising | 7,800 | |
Equipment | 60,000 | |
Accumulated Depreciation | 1,500 | |
Accounts Payable | 9,000 | |
SJ, Capital | 98,700 | |
Total | 109,200 | 109,200 |
Table (20)
Want to see more full solutions like this?
Chapter 6 Solutions
COLLEGE ACCOUNTING
- WORKING BACKWARD FROM THE INCOME STATEMENT AND BALANCE SHEET COLUMNS OF THE WORK SHEET TO DETERMINE ADJUSTED TRIAL BALANCE AND ADJUSTING ENTRIES The partial work sheet shown on page 561 is taken from the books of Diamond Music Store, a business owned by Ned Diamond, for the year ended December 31, 20--. REQUIRED 1. Analyze the work sheet and determine the adjusted trial balance and the adjusting entries by working backward from the Income Statement and Balance Sheet columns. 2. Journalize the adjusting entries in a general journal. 3. Prepare the cost of goods sold section of the income statement for Diamond Music Store.arrow_forwardADJUSTING, CLOSING, AND REVERSING ENTRIES A partial work sheet for Baldwin Company is shown on the next page. Data for adjusting the accounts are as follows: REQUIRED 1. Prepare the December 31 adjusting journal entries for Baldwin Company. 2. Prepare the December 31 closing journal entries for Baldwin Company. 3. Prepare the reversing journal entries as of January 1, 20-2, for Baldwin Company.arrow_forwardADJUSTING. CLOSING. AND REVERSING ENTRIES A 6-column spreadsheet for Baldwin Company is shown on the next page. Data for adjusting the accounts are as follows: REQUIRED 1. Prepare the December 31 adjusting journal entries for Baldwin Company. 2. Prepare the December 31 closing journal entries for Baldwin Company. 3. Prepare the reversing journal entries as of January 1,20-2, for Baldwin Company. PROBLEM 27-8Aarrow_forward
- The partial work sheet for Emil Consulting for June is as follows: Required If you are using Working Papers, complete the following: 1. a.Write the owners name on the Capital and Drawing T accounts. b.Record the account balances in the T accounts for owners equity, revenue, and expenses. 2. Journalize the closing entries using the four steps in correct order. Number the closing entries 1 through 4. 3. Post the closing entries to the T accounts immediately after you journalize each one to see the effect of the closing entries. Number closing entries 1 through 4. Check Figure Debit to Income Summary, second entry, 4,930arrow_forwardHello,I need help witht he Journal entry and the Post Closing Trial Balance entry. 4. Based upon the end-of-period spreadsheet, journalize the closing entries. Refer to the Chart of Accounts for exact wording of account titles. Beacons Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Beacons Company prepared the following end-of-period spreadsheet at December 31, 20Y5, the end of the fiscal year: Beacons Company End-of-Period Spreadsheet For the Year Ended December 31, 20Y5 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 10,500 10,500 Accounts Receivable 39,500 (a) 9,100 48,600 Prepaid Insurance 4,200 (b) 3,350 850 Supplies 2,790 (c) 2,180 610 Land 98,000 98,000 Building 416,000 416,000 Accumulated Depreciation-Building 205,300 (d) 14,000 219,300 Equipment 107,000 107,000 Accumulated…arrow_forwardPrepare a worksheet for Brown’s Plumbing and Heating. Write the heading for the worksheet for the fiscal period ending December 31, 20xx. Record the trial balance using the accounts and their balances from the Ledger tab. Some are done for you. Calculate and record the Supplies adjustment. There is $5,600.00 in supplies on hand at the end of the fiscal year. Calculate and record the Insurance adjustment. There is $900.00 of insurance coverage left at the end of the fiscal year. Prove the Adjustments columns. Extend all balance sheet account balances. Extend all income statement account balances. Calculate and record the net income or loss. Total and rule the Income Statement and Balance Sheet columns.arrow_forward
- On June 30 of the current year, Rosemount Copy Center has completed the Trial Balance columns of the work sheet. Analyze the adjustment information given here into debit and credit parts. Record the adjustments on the work sheet. Total the Adjustments columns. Adjustment Information June 30 Supplies on hand $188.00 Value of prepaid insurance 540.00 WORK SHEET For Month Ended June 30, 20-- ACCOUNT TITLE TRIAL BALANCE ADJUSTMENTS INCOME STATEMENT BALANCE SHEET DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT 1 Cash 8,715.00 1 2 Petty Cash 75.00 2 3 Accounts Receivable-Raymond O’Neil 642.00 3 4 Supplies 518.00 4 5 Prepaid Insurance 675.00 5 6 Accounts Payable-Western Supply 268.00 6 7 Akbar…arrow_forwardClosing Entries From the work sheet shown below, prepare the following: 1. Prepare closing entries for Gimbel's Gifts and Gadgets in a general journal. If an amount box does not require an entry, leave it blank. 2. Prepare a post-closing trial balance. Gimbel's Gifts and GadgetsWork SheetFor Year Ended December 31, 20-1 TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BALANCE INCOME STATEMENT BALANCE SHEET ACCOUNT TITLE DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT Cash 8,217 8,217 8,217 Accounts Receivable 6,714 6,714 6,714 Merchandise Inventory 14,222 (b) 16,520 (a) 14,222 16,520 16,520 Supplies 661 (c) 376 285 285 Prepaid Insurance 760 (d) 190 570 570 Building 81,500 81,500 81,500 Accum. Depr.—Building 13,855 (e) 4,075 17,930 17,930 Accounts Payable 5,256 5,256 5,256 Wages Payable (f) 293 293 293 Sales Tax Payable 318…arrow_forward
- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:CengageCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
- College Accounting (Book Only): A Career ApproachAccountingISBN:9781305084087Author:Cathy J. ScottPublisher:Cengage LearningCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,College Accounting, Chapters 1-27 (New in Account...AccountingISBN:9781305666160Author:James A. Heintz, Robert W. ParryPublisher:Cengage Learning