Exercise 4-2

Trial Balance Adjustments

Dr. Cr. Dr. Cr.
Prepaid Insurance 4,200 1,700
Service Revenue 59,900 1,200
Salaries and Wages Expenses 23,800 ###
Accounts Receivable ###
Salaries and Wages Payable 700
Insurance Expense ###

Exercise 4-4
Closing Entries:
Date Account Title Debit Credit
Dec-31 Service Revenue 52,000
Income Summary 52,000
(To close revenue accounts)

Dec-31 Income Summary 35,300

Salaries and Wages Expenses 28,500
Supplies Expenses 6,800
(To close expenses accounts)

Dec-31 Income Summary 16,700

Retained Earnings 16,700
(To close net income/loss)

Dec-31 Owner's Capital 1,200

Owner's Drawings 1,200
(To close drawings)

Exercise 4-5 Salaries and Wages Expenses

26,300

Supplies Expenses
6,200
 Service Revenue
1 51,000

Owner's Drawings
2,600

Income Summary
2 26,300 51,000
2 6,200
3 18,500
Owner's Capital
4 2,600 30,500
18,500
46,400

Exercise 4-1
Account Titles Adjustments Adj. Trial Balance
Dr. Cr. Dr.
Cash 2,200
Accounts Receivable 2,400
Supplies 1,600 300
Accounts Payable
Unearned Service Revenue 170
Owner's Capital
Service Revenue 170
Salaries and Wages Expenses 270 910
Miscellaneous Expenses 200

Supplies Expense 1,600 1,600

Salaries and Wages Payable 270
Totals 2040 2040 7610
Net Income

Exercise 4-5
Adjusting Entries:
Debit Credit
Accounts Receivable 1,430
Service Revenue 1,430
 (To record service revenue)

Insurance Expenses 310

Prepaid Insurance 310
(To record expired insurance)

Depreciation Expenses 1,000

Accumulated Depreciation- Equipment 1,000
(To record Depreciation)

Salaries and Wages Expenses 410

Salaries and Wages Payable 410
(To record accrued salaries)

Problem 4-3A
Here I am correcting only what was wrong in your worksheet.

Balance Sheet:
Assets:
Equipment 24,300
Less: Accumulated Depreciation -4,700 19,600
Total Assets 42,000

Closing Entries:
Dec-31 Income Summary 21,800
Owner's Capital 21,800

Owner's Capital
31-Dec 11,000 19,900
31-Dec 30,700 21,800
31-Dec 41,700 41,700

Owner's Drawing
31-Dec 11,000 11,000

Income Summary
31-Dec 37,900 59,700
31-Dec 21,800
59,700 59,700
 Service Revenue
31-Dec 59,700 59,700

Maintenance and Repairs Expense

31-Dec 1,400 1,400

Depreciation Expenses
31-Dec 3,000 3,000

Insurance Expense
31-Dec 1,800 1,800

Salaries and Wages Expense

31-Dec 30,300 30,300

Utilities Expense
31-Dec 1,400 1,400
Adjusted Trial Balance Income Statement Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr.
2,500 2,500
61,100 61,100
24,500 24,500
1,200 1,200
700 700
1,700 1,700

2
 4

Adj. Trial Balance

Cr.

1,100
200
2,170
3,870

270
7610
31-Dec
31-Dec
31-Dec

31-Dec

31-Dec
31-Dec
31-Dec

31-Dec

31-Dec

31-Dec

31-Dec

31-Dec