Acc557 Financial Accounting: Week 3 Chapter 4 (E4-1, E4-5,E4-7,E4-13,P4-4A)

Acc557 Financial Accounting Week 3 Chapter 4 (E4-1, E4-5,E4-7,E4-13,P4-4A) Exercise 4-1 The trial balance columns of the worksheet for Cajon Company at June 30, 2014, are as follows: Adjustments Account Titles Debit Credit Cash 4,020 Accounts Receivables 2,440 Supplies 1,900 Accounts Payable 1,120 Unearned Service Revenue 240 Common Stock 5,000 Service Revenue 3,100 Salaries and Wages Expense 860 Miscellaneous Expense 240 $9,460 $9,460 Other Data: 1. A physical count reveals $500 of supplies on hand. 2. $100 of the unearned revenue is still unearned at month-end. 3. Accrued salaries are $250. Complete the worksheet. Exercise 4-5 The adjustments columns of the worksheet for Munoz Company are shown below Adjustments Account Titles Debit Credit Accounts Receivable 600 Prepaid Insurance 400 Accumulated Depreciation—Equipment 900 Salaries and Wages Payable 500 Service Revenue 600 Salaries and Wages Expense 500 Insurance Expense 400 Depreciation Expense 900 2,400 2,400 Instructions: (a) Prepare adjusting entries in order presented in the problem. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (b) Indicate with an "X" the financial statement column to which each balance should be extended Exercise 4-7 Lanza Company had the following adjusted trial balance. LANZA COMPANY Adjusted Trial Balance For the Month Ended June 30, 2014 Account Titles Debit Credit Cash 3,712 Accounts Receivable 3,904 Supplies 480 Accounts Payable 1,556 Unearned Service Revenue 160 Common Stock 4,000 Retained Earnings 1,760 Dividends 600 Service Revenue 4,300 Salaries and Wages Expense 1,344 Miscellaneous Expense 180 Supplies Expense 1,900 Salaries and Wages Payable 344 12,120 12,120 Instructions: a. Prepare closing entries at June 30, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) b. Prepare a post-closing trial balance. Exercise 4-13 Kogan Company has an inexperienced accountant. During the first 2 weeks on the job, the accountant made the following errors in journalizing transactions. All entries were posted as made. 1. A payment on account of $840 to a creditor was debited to Accounts Payable $480 and credited to Cash $480. 2. The purchase of supplies on account for $380 was debited to Equipment $38 and credited to Accounts Payable $38. 3. A $500 cash dividend was debited to Salaries and Wages Expense $500 and credited to Cash $500. Instructions: Prepare the correcting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Problem 4-4A Excelsior Amusement Parkhas a fiscal year ending on September 30. Selected data from the September 30 worksheet are presented below. Excelsior Amusement Park Worksheet For the Year Ended September 30, 2014 Trial Balance Adjusted Trial Balance Dr. Cr. Dr. Cr. Cash 34,400 34,400 Supplies 18,600 2,200 Prepaid Insurance 29,900 10,900 Land 80,000 80,000 Equipment 120,000 120,000 Accumulated Depreciation-Equip. 36,200 42,200 Accounts Payable 14,600 14,600 Unearned Ticket Revenue 3,900 1,000 Mortgage Payable 50,000 50,000 Common Stock 60,000 60,000 Retained Earnings 36,100 36,100 Dividends 14,000 14,000 Ticket Revenue 277,900 280,800 Salaries and Wages Expense 98,000 98,000 Maintenance and Repairs Expense 30,500 30,500 Advertising Expense 9,400 9,400 Utilities Expense 16,900 16,900 Property Tax Expense 21,000 24,000 Interest Expense 6,000 8,000 Totals 478,700 478,700 Insurance Expense 19,000 Supplies Expense 16,400 Interest Payable 2,000 Depreciation Expense 6,000 Property Taxes Payable 3,000 Totals 489,700 489,700 Instructions: (a) Prepare a complete worksheet (b) Prepare a classified balance sheet. (Note: $15,000 of the mortgage note payable is due for payment in the next fiscal year.) (List assets in order of liquidity and liabilities from largest to smallest eg 10, 5, 3, 2, with notes first.) (c) Journalize the adjusting entries using the worksheet as a basis. (d) Journalize the closing entries using the worksheet as a basis. (e) Prepare a post-closing trial balance.
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