a)

GUNTER COMPANY
STATEMENT OF INCOME AND OWNER'S EQUITY
FOR THE YEAR ENDED DECEMBER 31, 2002
Service revenue

$59,000.00

Expenses

Utilities expense
Rent expense
Repair expense
Amortization expense
Salaries expense

$ 1,700.00
$12,200.00
$ 1,800.00
$ 2,600.00
$35,000.00

$53,300.00

Net income/(loss)

$ 5,700.00

Opening capital, N. Gunter

$34,000.00

Add net income

Less : Drawings

$ 5,700.00
$12,000.00

Closing capital, N. Gunter

$27,700.00

a)
GUNTER COMPANY
BALANCE SHEET
DECEMBER 31, 2002
Current assets
Cash
Prepaid rent
Accounts receivable

$
$
$
$

6,600.00
3,500.00
13,500.00
23,600.00

20,400.00

Total Assets

44,000.00

Liabilities and Owner's Equity

Accounts payable
Salaries payable

$
$

13,300.00
3,000.00

Total current liabilities

16,300.00

N. Gunter , Capital
Total liabilities & Owner's equity

$
$

27,700.00
44,000.00

Capital Assets
Equipment
Accumulated amortization

$26,000.00
$ 5,600.00

b)
GUNTER COMPANY
GENERAL JOURNAL
Date:
Account Titles and Explanation
Dec-31 Service revenue
N. Gunter, capital
Closing entry
31 N.Gunter, capital
Repair expense
Amortization expense
Salaries expense
Rent expense
Utilities expense
Closing entry
30-Jan N. Gunter, capital
N.Gunter, drawings
Closing entry

REF:
400
301

Debits
Credits
$59,000.00
$59,000.00

301
622
711
726
729
732

$53,300.00

301
306

$12,000.00

$ 1,800.00
$ 2,600.00
$35,000.00
$12,200.00
$ 1,700.00

$12,000.00

c)
GENERAL LEDGER
GUNTER COMPANY
Date:
Explanation:
December 1, 2002

Cash
REF:

Debits
Credits
$
6,600.00

Date:
Explanation:
December 1, 2002

Accounts Receivable
REF:
Debits
Credits
$
13,500.00

Date:
Explanation:
December 1, 2002

Prepaid rent
REF:
Debits
Credits
$
3,500.00

Date:
December 1,2002

Equipment
REF:
Debits
Credits
$
26,000.00

Explanation:

Date:
Explanation:
December 1, 2002

Date:
Explanation:
December 1, 2002

Date:
Explanation:
December 1, 2002

Date:
December 1, 2002
December 31, 2002
31
31

Explanation:
Closing entry
Closing entry
Closing entry

Date:
Explanation:
December 1, 2002
December 31, 2002

Date:
Explanation:
December 1, 2002

Accumulated amortization
REF:
Debits

Accounts payable
REF:
Debits

Salaries payable
REF:
Debits

N. Gunter, Capital
REF:
Debits

Credits
$
5,600.00

Credits
$
5,600.00

Credits
$
3,000.00

Credits
$ 34,000.00
$ 59,000.00

53,300.00
$

12,000.00

N. Gunter, Drawings
REF:
Debits
Credits
$
12,000.00
$ 12,000.00

Service revenue
REF:
Debits

Credits
$ 59,000.00

December 31,2002

59,000.00

Date:
Explanation:
December 1, 2002
December 31, 2002 Closing entry

Repair expense
REF:
Debits
Credits
$
1,800.00
$
1,800.00

Date:
Explanation:
December 1, 2002
December 31, 2002 Closing entry

Amortization expense
REF:
Debits
Credits
$
2,600.00
$
2,600.00

Date:
Explanation:
December 1, 2002
December 31, 2002 Closing entry

Salaries expense
REF:
Debits
Credits
$
35,000.00
$ 35,000.00

Date:
Explanation:
December 1, 2002
December 31, 2002 Closing entry

Rent expense
REF:
Debits
Credits
$
12,200.00
$ 12,200.00

Date:
Explanation:
December 1, 2002
December 31, 2002 Closing entry

Utilities expense
REF:
Debits
Credits
$
1,700.00
$
1,700.00

101
Balance
$
6,600.00

112
Balance
$
13,500.00
131
Balance
$
3,500.00
157
Balance
$
26,000.00
158
Balance
$
5,600.00

201
Balance
$
5,600.00

202
Balance
$
3,000.00

301

27,700.00
306

Balance

0
400
Balance

0
622
Balance

0
711
Balance

0
726
Balance

0
729
Balance

0
732
Balance

d)

GUNTER COMPANY
POST-CLOSING TRIAL BALANCE
DECEMBER 31, 2002

Cash
Accounts receivable
Prepaid rent
Equipment
Accumulated amortization
Accounts payable
Salaries payable
N. Gunter, Capital
N. Gunter, Drawings
Service revenue
Repair expense
Amortization expense
Salaries expense
Rent expense
Utilities expense

Debit
6,600
13,500
3,500
26,000

Credit

5,600
13,300
3,000
27,700
0
0
0
0
0
0
0

$ 49,600

$ 49,600