COMPREHENSIVE PROBLEM 1

1. and 2.
Date
2006
April

JOURNAL
Description

1
2
4
5
6
10
12
12
14
17
18
20
24

Pages 1 and 2
Post.
Ref.

Debit

Cash....................................................................
Accounts Receivable.........................................
Supplies..............................................................
Office Equipment...............................................
Kelly Pitney, Capital.....................................

11
12
14
18
31

13,100
3,000
1,400
12,500

Prepaid Rent.......................................................
Cash..............................................................

15
11

4,800

Prepaid Insurance..............................................
Cash..............................................................

16
11

1,800

Cash....................................................................
Unearned Fees.............................................

11
23

5,000

Office Equipment...............................................
Accounts Payable........................................

18
21

2,000

Cash....................................................................
Accounts Receivable...................................

11
12

1,800

Miscellaneous Expense.....................................
Cash..............................................................

59
11

120

Accounts Payable..............................................
Cash..............................................................

21
11

1,200

Accounts Receivable.........................................
Fees Earned..................................................

12
41

4,200

Salary Expense...................................................
Cash..............................................................

51
11

750

Cash....................................................................
Fees Earned..................................................

11
41

6,250

Supplies..............................................................
Cash..............................................................

14
11

800

Accounts Receivable.........................................
Fees Earned..................................................

12
41

2,100

Cash....................................................................
Fees Earned..................................................

11
41

3,850

Credit

30,000
4,800
1,800
5,000
2,000
1,800
120
1,200
4,200
750
6,250
800
2,100
3,850

1. and 2.

JOURNALPages 1 and 2

Date

Post.
Ref.

Description

2006
April 26
27
29
30
30
30
30

Debit

Cash....................................................................
Accounts Receivable...................................

11
12

5,600

Salary Expense...................................................
Cash..............................................................

51
11

750

Miscellaneous Expense.....................................
Cash..............................................................

59
11

130

Miscellaneous Expense.....................................
Cash..............................................................

59
11

200

Cash....................................................................
Fees Earned..................................................

11
41

3,050

Accounts Receivable.........................................
Fees Earned..................................................

12
41

1,500

Kelly Pitney, Drawing.........................................

Cash..............................................................

32
11

6,000

Credit

5,600
750
130
200
3,050
1,500
6,000

2., 5., and 6.

Cash

11

Date
2006
April

1
1
2
4
6
10
12
14
17
18
24
26
27
29
30
30
30

Item
....................................
....................................
....................................
....................................
....................................
....................................
....................................
....................................
....................................
....................................
....................................
....................................
....................................
....................................
....................................
....................................
....................................

Post.
Ref.

Dr.

Cr.

Dr.

Balance
Cr.

1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
2
2

13,100
..............
..............
5,000
1,800
..............
..............
..............
6,250
..............
3,850
5,600
..............
..............
..............
3,050
..............

..............
4,800
1,800
..............
..............
120
1,200
750
..............
800
..............
..............
750
130
200
..............
6,000

13,100
8,300
6,500
11,500
13,300
13,180
11,980
11,230
17,480
16,680
20,530
26,130
25,380
25,250
25,050
28,100
22,100

..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............

Accounts Receivable
2006
April

1
6
12
20
26
30

....................................
....................................
....................................
....................................
....................................
....................................

12
1
1
1
2
2
2

3,000
..............
4,200
2,100
..............
1,500

..............
1,800
..............
..............
5,600
..............

3,000
1,200
5,400
7,500
1,900
3,400

..............
..............
..............
..............
..............
..............

Supplies
2006
April

1
18
30

14
....................................
....................................
Adjusting....................

1
2
3

1,400
800
..............

..............
..............
850

1,400
2,200
1,350

..............
..............
..............

Prepaid Rent
Date
2006
April

15
Item

1
30

....................................
Adjusting....................

Post.
Ref.

Dr.

Cr.

1
3

4,800
..............

..............
1,600

Dr.

Balance
Cr.

4,800
3,200

Prepaid Insurance
2006
April

2
30

....................................
Adjusting....................

16
1
3

1,800
..............

..............
300

1,800
1,500

Office Equipment
2006
April

1
5

....................................
....................................

Adjusting....................

1
1

12,500
2,000

..............
..............

12,500
14,500

5
12

....................................
....................................

..............

700

..............

Adjusting....................

700
21

1
1

..............
1,200

2,000
..............

..............
..............

Salaries Payable
2006
April 30

..............
..............
19

Accounts Payable
2006
April

..............
..............
18

Accumulated Depreciation
2006
April 30

..............
..............

2,000
800
22

..............

120

..............

120
3

Unearned Fees
2006
April

4
30

23

....................................
Adjusting....................

1
3

..............
2,500

5,000
..............

..............
..............

5,000
2,500

Kelly Pitney, Capital

Date
2006
April

1
30
30

Item
....................................
Closing.......................
Closing.......................

31
Post.
Ref.

Dr.

Cr.

Dr.

Balance
Cr.

1
4
4

..............
..............
6,000

30,000
17,930
..............

..............
..............
..............

Kelly Pitney, Drawing

2006
April 30
30

....................................
Closing.......................

32
2
4

6,000
..............

..............
6,000

6,000

Income Summary
2006
April 30
30
30

Closing.......................
Closing.......................
Closing.......................

....................................
....................................
....................................
....................................
....................................
....................................
Adjusting....................
Closing.......................

4
4
4

..............
5,520
17,930

23,450
..............
..............

..............
..............

....................................
....................................
Adjusting....................
Closing.......................

23,450
17,930

41

1
2
2
2
2
2
3
4

..............
..............
..............
..............
..............
..............
..............
23,450

4,200
6,250
2,100
3,850
3,050
1,500
2,500
..............

..............
..............
..............
..............
..............
..............
..............

Salary Expense
2006
April 14
27
30
30

..............

33

Fees Earned
2006
April 12
17
20
24
30
30
30
30

30,000
47,930
41,930

4,200
10,450
12,550
16,400
19,450
20,950
23,450

51

1
2
3
4

750
750
120
..............

..............
..............
..............
1,620

750
1,500
1,620

..............
..............
..............

Comp. Prob. 1 Continued

Rent Expense
Date
2006
April 30
30

52
Item

Adjusting....................
Closing.......................

Post.
Ref.

Dr.

Cr.

3
4

1,600
..............

..............
1,600

Dr.

Balance
Cr.

1,600

Supplies Expense
2006
April 30
30

Adjusting....................
Closing.......................

53
3
4

850
..............

..............
850

850

Depreciation Expense
2006
April 30
30

Adjusting....................
Closing.......................

Adjusting....................
Closing.......................

3
4

700
..............

..............
700

700

....................................
....................................
....................................
Closing.......................

..............

55

3
4

300
..............

..............
300

300

Miscellaneous Expense
2006
April 10
29
30
30

..............

54

Insurance Expense
2006
April 30
30

..............

..............

59

1
2
2
4

120
130
200
..............

..............
..............
..............
450

120
250
450

..............
..............
..............

Comp. Prob. 1 Continued

3.

Account Title
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

HIPPOCRATES CONSULTING
Work Sheet
For the Month Ended April 30, 2006
Adjusted
Trial Balance
Adjustments
Trial Balance
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.

Cash.............................. 22,100
Accounts Receivable...
3,400
Supplies........................
2,200
Prepaid Rent.................
4,800
Prepaid Insurance........
1,800
Office Equipment......... 14,500
Accum. Depreciation. . . ..............
Accounts Payable........ ..............
Salaries Payable........... ..............
Unearned Fees............. ..............
Kelly Pitney, Capital..... ..............
Kelly Pitney, Drawing...
6,000
Fees Earned.................. ..............
Salary Expense............
1,500
Rent Expense............... ..............
Supplies Expense........ ..............
Depreciation Expense.. ..............
Insurance Expense...... ..............
Miscellaneous Expense
450
56,750
Net income....................

..............
..............
..............
..............
..............
..............
..............
800
..............
5,000
30,000
..............
20,950
..............
..............
..............
..............
..............
..............
56,750

..............
..............
..............
..............
..............
..............
..............
..............
..............
(f) 2,500
..............
..............
..............
(d) 120
(e) 1,600
(b) 850
(c) 700
(a) 300
..............
6,070

..............
..............
(b) 850
(e) 1,600
(a) 300
..............
(c) 700
..............
(d) 120
..............
..............
..............
(f) 2,500
..............
..............
..............
..............
..............
..............
6,070

22,100
3,400
1,350
3,200
1,500
14,500
..............
..............
..............
..............
..............
6,000
..............
1,620
1,600
850
700
300
450
57,570

..............
..............
..............
..............
..............
..............
700
800
120
2,500
30,000
..............
23,450
..............
..............
..............
..............
..............
..............
57,570

Income
Statement
Dr.
Cr.
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
1,620
1,600
850
700
300
450
5,520
17,930
23,450

..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
23,450
..............
..............
..............
..............
..............
..............
23,450
..............
23,450

Balance
Sheet
Dr.
Cr.
22,100
3,400
1,350
3,200
1,500
14,500
..............
..............
..............
..............
..............
6,000
..............
..............
..............
..............
..............
..............
..............
52,050
..............
52,050

.............
.............
.............
.............
.............
.............
700
800
120
2,500
30,000
.............
.............
.............
.............
.............
.............
.............
.............
34,120
17,930
52,050

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

Comp. Prob. 1 Continued

4.
HIPPOCRATES CONSULTING
Income Statement
For the Month Ended April 30, 2006
Fees earned................................................................................
Operating expenses:
Salary expense....................................................................
Rent expense......................................................................
Supplies expense...............................................................
Depreciation expense.........................................................
Insurance expense..............................................................
Miscellaneous expense......................................................
Total operating expenses...............................................
Net income..................................................................................

$ 23,450
$1,620
1,600
850
700
300
450
5,520
$ 17,930

HIPPOCRATES CONSULTING
Statement of Owners Equity
For the Month Ended April 30, 2006
Kelly Pitney, capital, April 1, 2006.............................................
Additional investments during the month................................
Total.............................................................................................
Net income for the month..........................................................
Less withdrawals........................................................................
Increase in owners equity.........................................................
Kelly Pitney, capital, April 30, 2006...........................................

0
30,000
$30,000

$17,930
6,000
11,930
$ 41,930

Comp. Prob. 1 Continued

HIPPOCRATES CONSULTING
Balance Sheet
April 30, 2006
Assets
Current assets:
Cash............................... $22,100
Accounts receivable......
3,400
Supplies.........................
1,350
Prepaid rent...................
3,200
Prepaid insurance.........
1,500
Total current assets....
$31,550
Property, plant, and
equipment:.....................
Office equipment........... $14,500
Less accum. depr.......
700
13,800
Total assets.......................
$ 45,350
5.

Liabilities
Current liabilities:
Accounts payable....... $ 800
Salaries payable.........
120
Unearned fees............. 2,500
Total liabilities..........
$
Owners Equity
Kelly Pitney,
capital..........................
Total liabilities and
owners equity............

JOURNAL

41,930
$ 45,350
Page 3

Post.
Ref.

Date

3,420

Debit

Credit

Adjusting Entries
2006
April 30
30
30
30
30
30

Insurance Expense............................................
Prepaid Insurance........................................

55
16

300

Supplies Expense..............................................
Supplies........................................................

53
14

850

Depreciation Expense........................................
Accumulated Depreciation..........................

54
19

700

Salary Expense...................................................
Salaries Payable...........................................

51
22

120

Rent Expense.....................................................
Prepaid Rent.................................................

52
15

1,600

Unearned Fees...................................................
Fees Earned..................................................

23
41

2,500

300
850
700
120
1,600
2,500

Comp. Prob. 1 Concluded

6.

JOURNAL

Page 4
Post.
Ref.

Date

Debit

Credit

Closing Entries
2006
April 30
30

30
30

Fees Earned........................................................
Income Summary.........................................

41
33

23,450

Income Summary...............................................
Salary Expense............................................
Rent Expense...............................................
Supplies Expense........................................
Depreciation Expense..................................
Insurance Expense......................................
Miscellaneous Expense...............................

33
51
52
53
54
55
59

5,520

Income Summary...............................................
Kelly Pitney, Capital.....................................

33
31

17,930

Kelly Pitney, Capital...........................................

Kelly Pitney, Drawing...................................

31
32

6,000

23,450
1,620
1,600
850
700
300
450
17,930
6,000

7.
HIPPOCRATES CONSULTING
Post-Closing Trial Balance
April 30, 2006
Cash............................................................................................
Accounts Receivable.................................................................
Supplies ............................................................................1,350
Prepaid Rent...............................................................................
Prepaid Insurance......................................................................
Office Equipment........................................................................
Accumulated Depreciation........................................................
Accounts Payable.......................................................................
Salaries Payable.........................................................................
Unearned Fees............................................................................
Kelly Pitney, Capital...................................................................
Totals...................................................................................

22,100
3,400
3,200
1,500
14,500

46,050

700
800
120
2,500
41,930
46,050