award:

1 10outof • 10.00 · .......... · points ........................................................................................................................................................................................... ·

From the dropdown box beside each numbered balance sheet Item, select the letter of its balance sheet classification. If the item should not appear on the balance sheet, choose the letter Z from the selection choices.

A. Current assets B. Long-term investments C. Plant assets o. Intangible assets E. Current liabilities F. Long-term liabilities G. Equity

Account Title

1. Long-tem1 investment in stock

2 Depreciation expense-Building

Prepaid rent

Interest receivable

Taxes payable

6. Automobiles

7. Notes payable (due in 3 years)

8. Accounts payable

9. Prepaid insurance

10. OWner, Capital

Classification

B

z A

A

E

c F

E

A

G

.I 11.

.I 12.

.I 13.

.I 14.

.I 15.

.I 16.

.I 17.

.I 18.

.I 19.

.,1120.

Account Title

Unearned seivices revenue

Accumulated depreciation- Trucks

Cash

Buildings

Store supplies

Office equipment

E and (used in operations)

Repairs expense

Office supplies

I Current portion of long-term note payable

Classification

E ./ c ./

.A ./ c ./ A ./ c ./ c ./ z ./ A ./ E ./

···········Ailiii··1;·2513:·11;0·Nozoiiiicieaieii··a·r;;,:.i; ··fravei .. a9enci:·"Actveiifuietiavei·:rhefoiio\;iiiiilfraiisaciioiis···· occurred during the company's first month.

April 1 Nozomi invested $30,000 cash and computer equipment worth $20,000 in the company.

2 The company rented furnisl1ed office space by paying $1,800 cash for the first month's (April) rent

3 The company purchased 51 ,000 of office supplies for cash. 10 The company paid $2,400 cash for the premium on a 12-month insurance policy. Coverage

begins on April 11. 14 The company paid $1,600 cash for two weeks' salaries earned by employees. 24 The company collected S8,000 cash on commissions from airtines on tickets obtained for

customers. 28 The company paid $1,600 cash for two weeks' salaries earned by employees. 29 The company paid $350 cash for minor repairs to the company's computer. 30 The company paid $750 cash for this month's telephone bill. 30 Nozomi withdrew $1,500 cash from the company for personal use.

The company's chart of accounts follows:

101 Cash 106 Accounts Receivable 124 Office Supplies 128 Prepaid Insurance 167 Computer Equipment 168 Accumulated Depreciation-Computer Equip. 209 Salaries Payable 301 J.Nozomi, Capital 302 J.Nozomi, Withdrawals

Use the following information:

405 Commissions Earned 612 Depreciation Expense-Computer Equip. 622 Salaries Expense 637 Insurance Expense 640 Rent Expense 650 Office Supplies Expense 684 Repairs Expense 688 Telephone Expense 901 Income Summary

a. Two-thirds (or $133) of one month's insurance coverage has expired. b. At the end of the month, 5600 of office supplies are still available. c. This month's depreciation on the computer equipment is $500. d. Employees earned $420 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,750 of commissions that are not yet billed at month-end.

2. award: 10 out of 10.00

· · · · · · ··points ·· Required : 1. The general ledger and all the necessar1 accounts are provided in Part 6.2. Post all journal entries,

adjusting entries and closing entries to the general ledger given in Part 6.2

2. Prepare journal entries to record the transactions for Ap<il and post them to the ledger accounts in Part 6.2. The company records prepaid and unearned items in balance sheet accounts.

Date General Journal Debit Credit

April 01 Cash ./ 30.000./

Computer equipment ./ 20,000./

J. Nozomi, Caprtal ./ 50,000./

April 02 Rent expense 1,800./

Cash 1,800./

April 03 Office supplies ./ 1,000./

Gash 1,000./

April 10 Prepaid insurance ./ 2,400./

Cash ./ 2,400./

April 14 Salaries expense 1,600./

Cash 1,600./

April 24 Cash ./ 8,000./

Commissions earned ./ 8,000./

April 28 Salaries expense ./ 1,600./

Cash ./ 1,600./

April 29 Repairs expense ./ 350./

Cash ./ 350./

April 30 Telephone expense ./ 750./

Cash ./ 750./

April 30 J. Nozomi, Withdrawals ./ 1,500./

Cash ./ 1,500,.il

3. award: 10 out of 10.00

3. Using account balances from part 6.2, prepare an unadjuste<l trial balance as of April 30.

Account Title

101: Cash

106: Accounts receivable

124: Office supplies

128: Prepaid insurance

167: Computer equipment

ADVENTURE TRAVEL

Unadjusted Trial Balance

April 30, 2013

$

168: Accumulated depreciation- Computer equipment

209: Salaries payable

301: J. Nozomi, Capital

302: J. Nozomi, Witlldrawals

405: Commissions earned

612: Depreciation expense- Computer equipment

622: Salaries expense

637: Insurance expense

640: Rent expense

650: Office supplies expense

684: Repairs expense

688: Telephone expense

Total

Debit

27,000yl

o.; 1,000.;

2,400.I

20.000.;

1,500.I

o.; 3,200.I

o.; 1,800.I

o.; 350v'

750.I

58,000 ' $ I

Credit

o.; o.;

50,000yl

8,000./

58,000

SV.'3.td:

4 10out of . 10.00

............................ 'P<ll'OIS ..................................................................................................................... ..

4. Journalize the adjusting entries for the month and then post to section 6.2.

Transaction General Journal

- a. 'insurance expense

Prepaid insurance

b. Office supplies expense

c.

d .

Office supplies

Depreciation expense-Computer equip.

Accumulated depreciation-Computer equip.

Salaries expense

Salaries payable

Accounts receivable

Comn1issions earned

,/

,/

I ,/

,/

,/ ,/

,/

,/

,/

,/

Debit .. Credit

133,/

133,/

400,/

400,/

500,/

500,/

420,/

420,/

1,750,/

1,750,/

award:

5 10outof • 10.00

..................... pol'nts ............................................................................................... .

5.1 Prepare the income statement for the month of April 30, 2013.

ADVENTURE TRAVEL

Income Statement

For Month Ended April 30, 2013

Revenues: - - - - ~ Commissions earned .I $ -

,Expenses:

Depreciation expense-Computer equip. .I $ 500./

Salaries expense .I 3,620.I

Insurance expense .I 133./

Rent expense .I 1.800./

Office supplies expense .I 400./

Telephone expense .I 750./

Repairs expense .I 350./

0

0

Total expenses

Net income .I $

5.2 Prepare the statement of owner's equi~/ for the month of April 30, 2013.

ADVENTURE TRAVEL

Statement of OWner's Equity

For Month Ended April 30, 2013

J. Nozomi, Capital, April 1, 2013 1$

Add: Net income .I $ 2,197./

Add: Owner investments .I 50,000./

Less: Wrthdrawals .I J.Nozomi, Capttal, April 30, 2013 .I ' $

5.3 Prepare the balance sheet at April 30, 2013.

Assets

Cash

Accounts receivable

Office supplies

Prepaid insurance

Computer equipment

ADVENTURE TRAVEL

Balance Sheet

April 30, 2013

Accumulated depreciation-Computer equip

Total assets

Liabilities ---Salaries payable

Equity

J. Nozomi, Capital

Total liabilities and equity

0

52,197

1.500./1 50,697

I

20,000.I

500./

$

9,750./

7,553

2,197

27,000.I

1.750./

600.I

2,2fi7.I

19,500

51, 117

420.I

50,697./

51,111 I

award:

6 10out of . 10.00

........................... points ... 6.1 Prepare journal entries to close the temporary accounts and t11en post to section 6.2.

Date General Journal Debit credit

Aprif 30

April 30

Commissions earned

Income summary

Income summary

Depreciation expense-Computer equip.

Salaries expense

Insurance expense

Rent expense

Office supplies expense

Repairs expense

Telephone expense

9.750./

April 30 Income summao1 ./ 2,197./

J. Nozomi, Capital -+-- ./

I April 30 J . Nozomi, Capital ./ 1,500./

J. Nozomi. Withdrawals ./

6.2 Post the journal entries to the ledger.

Date

April 1

April2

April 3

April 10

April 14

April24

.April28

April 29

April 30 Tel.

,April 30 WD

General Ledger accounts

Cash ==

Debit

30,000./

Credit Balance

30,000

8,000./

Office Supplies

1,800./t-

1.000./

2,400./

1.600./

1,600./

350./

750./

1,500./

28.200

27,200

24,800

23,200

31,200

29,600

29,250

28,500

27,000

Debit Credit Balance Date

April 3 !"'""-------;-------~

1,000./1

1,000

April 30 Adj. 400./ 600

•Red lCJ<.l im.1 ~~4tl:'> • o 1~:.1JV1+!.~ v.:1> e10.1tl:.tcd in ii i.tll v1 "(1.1rt111.1f..,.b.,!>ct.I tolo. ~iun h. ir1·;.1Y1cc.t ,,-:: S)Uiti!.":o <il:t.l--lE::J

Date

( pril 1

Computer Equipment

Debit Credit ---20.000./

Balance

20.000

I • !kiJ lest i11.Jil..dtb "u 'ei.1.11.11•~c 1.,<iS. CXJJt:tlt:iJ iri ., u:ll ur a (un11uld·b.ucl.I :. .. 1...u:,.1it111 i!> ui-:()- 1.:~.t '''° puir•b d~d:.d1....J

Salaries Payable

Date Debit Credit Balance

[Adj ~ 420./ 420

T •RcCI lcl<.l i11di.c.it..::. r:> se:.fJU•~:r.c w.i~ t:-'-p~:.lcCI i r1 <i Ct:ll ur <1 fu1u1i..l.3 ·1J4:r..:IJ c. .. 1w,4:iu11 if> 1n,.:.o.i1c<.t. tl<l j.1tii11~

<J::J .. "-Lt:tL

Date

April 30 WD ./

J. Nozomi, Withdrawals

Debit

1.500./•

Credit Balance

1.500

April 30 Close ./ 1,500./ 0

•Red teitl im.l ~~tt:'> •tr ;~:.IJVl•!.C v.<1> <:!XIJti:.lt!d iri O Ltdl IJ! ,;, (1.1rr11uf.., .b.,!.tet.I :.olu.: ~jl)I\ h. !r1·;.1Y1ec.t ,,-:: l)Uiti!.">­

.u:d~-le:j

Depreciation Expense--Computer Equipment = Date

April 30Adj. ./

( pril 30 Clos_e __ ./'""•

l

Debit Credit

500./

Balance

>--500y ..._

500

0

'Rtea h:,.,l iud.<;<ite :> ce!.1J011:.c 1~:1:. ~XfJe:.lted in o :.t:ll <11 o (1)1 ni.;l:1·1J4:.<:d Caolo,; •a:iuo i!. i•1-.:.:n!<."!. n~ l'Olrt:'!. ~.::J_.de:J.

Insurance Expense

Date Debit Credit ... ~~~~-~~-~~-Apr i I 30 Adj. ./ 133./

April 30 Close ./ 133./

I

Balance

133

0

•R.:U l cxl ind.wto:.:. u 41:!.!Jtm!.c W<1$ :x!Jc:.h::IJ In <1 u:!! u1 o (1.11111ul.:i·IJ0:.c!.I ~dku ,.;1u11 Ii. j,,t;1.>·1~.~ no !Julnb <J~du.tc~

Date

April 30 Adj.

April 30 Close

Office Suppl ies Expense

Debit Credit

400./

400./

Balance

400

0

•Rcd l<=X.I ii u.l...<11'=-'- u ·~:.µUn!.~ l'ld:. :,o;j):::Llted ill a u:ll ur o ft111111iLf·IJd!><!:l.I Loki.; otiuh b lr1u.>U ..:1..! JUU µui t•U. C<:dt.Xh .. '-0

April 30

April 30 Close

./

./

Telephone Expense

Debit Credit Balance

750./

750

0

•R.:U lcxl ind.wto:.:. u 41:!.!Jtm!.c W<1$ :x!Jc:.h::IJ In <1 u:!! u1 o (1.11111ul.:i·IJ0:.c!.I ~dku ,.;1u11 Ii. lr•t;1.>·1~.~ no !Julnb <.l~du.tc~

9.750./

500J

3,620./

133./

1,800./

400./1

350./

750./

2.197./

1.500./

Date

.April 30 Adj. ---~-

1--

Accounts Receivable

Debit Credit Balance

1.750./ 1.750

*Red lc;..l lnU1...,tb i;. 1:::!.jJUll~ l'M~ :.<pt!~lteiJ Ind u:I! ot d (u1m,,.1,.,i ·l.io~etJ :..iilw • .;;111JI\ •~ l"t:t.o!'t<:\. . OU f.IUll O;:d!_.,,.tt::l

Prepaid Insurance

Date Debit Credit II Balance .,----~-..... ~~-~--~

./ April 10

April 30Adj.

_,_ __ ./'

2,400./L I 2,400

133./J 2,267 ---~

_l 'lktJ lt:it! indr~:t.:. u •t!!>µVn:.e w<1 S ~xpc::led lr1 <1 cell ..;1 <1 h.11111ul:1·bihed :. .. lwI..aiuu i:. irtc:111ect oo µcil

oJ-::\.1 .. «lCl:I .

Accumulated Depreciation-Computer equipment

Date Debit Credit Balance

.April 30 Adj. ./ ----!- 5J 500

*ReiJ h:~l lnu1...,tb "1:::!>1JUH~ 1·M~ :.<pt!~lteiJ Ind u:I! ot .i ru1m,,.1,.,i ·l.io:.~tJ :..iilw • .;;!llJI\ ·~ l"t:t.o!'t<:•. nu µuu d.::ll -<.hi:t3 .

Date

April 30 Inc

April 30WD

Date

April 24

April 30Adj.

April 30 Close

Date

April 14

.April 28

April 30 Adj.

April 30 Close

./

./

./

./

J. Nozomi, Capital

Debit Credit

50,000./

1,500.I 2.197./r

Commissions earned

Debit

9,750./

Credit

8,000./

1,750./

Salartes Expense

Debit Credit

1.600./1

1,600./

420./

3.620./ -~~--

Rent Expense

Date Debit Credit

April 2 ./ 1.800./

April 30 Close ./ 1,800./

I

Balance

50,000

52~~ 50.697

Balance

8,000

9,750

0

Balance

1.600

3,200

3.620

0

Balance

1,800

0

• Rt:IJ l~:d 1111.l•W-tl:'!> t·:.>Jl=t>f,IVll:Ot: W<I\> t:Xj.IC:.~~ll 111 <I t.l:ll TJI d (011111Jl..:l•lJo'>l;!tJ ( 1:SiW .::1U11 I!> l lll,;\.O.'.f{!t;! tHJ µVii

d.::cl-dcd.

Repairs Expense

Date Debit Credit

April 29 ./ 350./

.April 30 Close ./

Balance

350./ --+---

__ .. 350

0

•Rtiu l<:xt ln1.!>;Ai.16 u ·~:.f.IO•u.lo! ~ .. s ':!.ltl't't.lt!U in a u.:11 u1., fu11111..tl<1·b•H.ciJ 1.4lt.1.. =!lun b l rX:IJ(1r.: ... : no IJQii d¢J1.K.lc!J.

Date

April 30 Rev .

.April 30 Exp.

April 30 Close

./

./

./

Income Summary

Debit Credit

7,553./

2,197./

9,750./

I 2,197

0

7. award: 10 out of 10.00 .... ... ... ... ... ... "poi'iits .............................................................................. ·· ..................................................................................................................... · ·

7. Prepare a post-closing trial balance. (Please prepare your tr ial balance in chan of accounts order given in the question.)

ADVENTURE TRAVEL

Post-Closing Trial Balance

April 30, 2013

Account TiUe Debit Credit

Cash

Accounts receivable

Office supplies

Prepaid insurance

./ $ 27.000./

./ 1,750./

./ 600./

./ 2,267./

Computer equipment ./

Accumulated depreciation-Computer equipment ./ 500./

Salaries payable ./ 420./

J.Nozomi, Capttal ./ 50,697./ .~~~~~~-'--~~~~~--;

Totals 1$ 51.617 $ 51,617 I ·~~~~~~-'--~~~~~-'

8. award: 10 out of 10.00

........................... ·poi·n1s ··· The adjusted trial balance for Tybalt Construction as of December 31 , 2013, follows.

TYBALT CONSTRUCTION Adjusted Trial Balance

December 31, 2013 No. Account Title Debit Crecfit 101 Cash s 5,000 104 Short-term investments 23,000 125 Supplies 8,100 128 Prepaid insurance 7,000 167 Equipment 40,000 158 Accumulated depreciation- Equipment s 20,000 173 Building 150,000 174 Accumulated depreciation- Building 50.000 183 Land 55,000 201 Accounts payable 15,500 203 Interest payable 2,500 208 Rent payable 3,500 210 Wages payable 2,500 213 Property taxes payable 900 233 unearned professional fees 7,500 251 Long-term notes payable 67,000 301 o . Tybalt, Capital 125,400 302 0. Tybalt, Withdrawals 13,000 401 Professional fees earned 97,000

406 Rent earned 14,000

407 Dividends earned 2,000

409 Interest earned 2.100 605 Depreciation expense-Building 11,000 612 Depreciation expense-Equipment 5,000 623 Wages expense 32,000 633 Interest expense 5,100 637 Insurance expense 10,000 640 Rent expense 13,400 652 Supplies expense 7,400 682 Postage expense 4,200 683 Property taxes expense 5,000 684 Repairs expense 8,900 688 Telephone expense 3,200 690 Utilities expense 4,600

Totals s 411,900 $ 411,900

0 . Tybalt invested $5,000 cash in the business during year 2013 (the December 31, 2012, credit balance of the o . Tybalt, Capital account was S121,400). Tybalt Construction is required to make a $7,000 payment on its long-term notes payable during 2014.

Required : 1.1 Prepare the income statement for the calendar year 2013.

Revenues

TYBALT CONSTRUCTION

Income Statement

For Year Ended December 31, 2013

Professional fees earned ./ $ 97,00o./

14.000./

2,000./

Rent earned ./ Dividends earned ./ Interest earned ./

$

$

Total revenues $ 115.100

Expenses

Depreciation expense-buildi~g

Depreciation expense-equipment

Wages expense

Interest expense

Insurance expense

Rent expense

Supplies expense

Postage expense

Property taxes expense

Repairs expense

Telephone expense

Utilrties expense

Total expenses

Net income

./

./

./

./

./

./

./

./

./

./

./

./

r 11.00o./

6.000./

32,000./

4.200./

5,000./

8.900./

3,200./

4.60~./1

$

1.2 Prepare the statement of owner's equity for the calendar year 2013.

TYBALT CONSTRUCTION

Statement of OWner's Equity

For Year Ended December 31, 2013

O. TYbalt, Capital, Dec. 31, 2012

Add: Investments by owner

Add: Net income

Less: Withdrawals by owner

o. Tybalt, Capital, Dec. 31, 2013

./ :$ 5,000./

4,300./

110,800

4,300./

121,400.,.I

1.3 Prepare the classified balance sheet at December 31 , 2013 ..

2.

TYBALT CONSTRUCTION

Balance Sheet

Decernber31,2013

Assets

Current assets ./ Cash ./ $

Short-term investments ./ Supplies ./ Prepaid insurance ./

Total current assets ./ Plant assets ./

Equipment ./ Accumulated depreciabo~qu1pment ./ Building ./ Accumulated depreciafion-building ./ Land ./

Total plant assets ./ Total assets ./

Liabilities

Current liabilities ./ Accounts payable ./ Interest payable ./ Rent payable ./ Wages payable ./ Property taxes payable ./ Unearned professional fees ./ Current portion o! long-term note payable ./

Total current liabilities ./ Long-term liabilities .JI

Long-term notes payable ./ Total liabilities ./

Equity

o. Tybalt, Capital ./

• • Prepare the necessary closing entries at December 31, 2013.

Closing entries (all dated December 31. 201 3):

Date General Journal

Dec 31 Professional fees earned

Rent earned Dividends earned

Interest earned

Income summary

Dec 31 Income summary

Depreciation expense-building

Depreciation expense-equipment

Wages expense

Interest expense

Insurance expense

Rent expense

Supplies expense

Postage expense

Property taxes expense

Repairs expense

Telephone expense

Utilities expense

Dec 31 Income summar~

o. Tybalt, Capital

Dec 31 o. Tybalt, Capital

o. Tybalt, Wrthdrawals

5,000./

23,000./

8,100./

1.000.11

$ 43,100

40.000./

20.000.11 20.000

150.ooo,/l

50,000./ 100,000

55,000./

175.000 __ , 1$ 218,100

./

16.500./

2,500./

3,500./

2,500./

900./

7,500./

7,000./

f 40,400

60,000./

100.400

./ 117,700./ •

~

Debit Credit

./ 97.000./

./ 14.000./

./ 2,000./

./ 2.100./

./ 115.100./

./ 110,800./

./ 11.000./

./ 6 ,000./

./ 32.000./

./ 5,100./

./ 10,000./

./ 13,400./

./ 7,400./

./ 4,200./

./ 5.000./1

./ 8,900./

./ 3,200./

./ 4,600./

./ 4.300./

./ 4,300./1

./ 13,000./

./ 13.000./

3. Use the information in the financial statements to compute Ille following ratios:

1aJ Return on assets (total assets at December 31, 2012. was $200,000)

Numerator: I Denominator.

Net income ./ Average total assets ./ =

$ 4,300./ $ 209.050./ = ~~ ... ~~ ..... ~-

b) Debi ratio

Return on total assets

Return on total assets

2.06 %

Numerator: Denominator. Debt ratio

Tota!liabilities ./ Total assets ./ = + Debt ratio

$ 100.400./ $ 21 8,100./ = d4t>; j ~,......~~ ...... ~ ~...i.~~~ ..... iiiiiiii--~.-;;--..... iiiiiiiiiiiiiiiiiiiiiiii.....m/

c) Profit margin ratio (use total revenues as the denominator)

Numerator: Denominator: Profit margin

Net income ./ Total revenues ./ ~t margin $ 4,300./ $ 115,100./ = '.H G %

d) Current ratio

Numerator: Denominator: Current ratio

Current assets ./ Current liabilities ./ = Current ratio

$ 43.100./ $ 40,400./ = { 07 : 1

award:

9 9.76 out of • 10.00

···························points··· Refer to the following Hawkeye Ranges.

a. As of December 31 , 2013. employees had earned $1,200 of unpaid and unrecorded salaries. The next payday is January 4, at which time $1 ,500 of salaries will be paid.

b. The cost of supplies still available at December 31 , 2013. is $3,000. c. The notes payable requires an interest payment to be made every three months. The amount of

unrecorded accrued interest at December 31, 2013, is $1,875. The next interest payment. at an amount of $2,250, is due on January 15, 2014.

d. Analysis of the unearned member lees account shows $5,800 remaining unearned at December 31 , 2013.

e. tn addition to the member fees Included in the revenue account balance, the company has earned another S9,300 in unrecorded fees that will be collected on January 31, 2014. The company is also expected to collect $10,000 on that same day for new fees earned in January 2014.

f. Depreciation expense for the year is S 15.000.

Required : 1. Complete the six-column table by entering adjustments that reftect the above information. (Enter

member fees earned amount in the same order as they appear above.)

HAWKEYE RANGES

WOf1< Sheet

December 31, 2013

Unadjusted

T~Balance Adjustments

Account TiUe Dr. Cr. Dr.

·Cash 1$ 14,000

I Accounts receivable x Supplies 6,500

Equipment 135,000

Accumulated depreciation-Equipment $ 30,000

Interest payable

I Salaries payable Unearned member fees 15,000 9,200.,I

t Notes payable 75.000

P. Hawkeye, Capital 50,250

, P. Hawkeye, Withdrawals 21,125

I Member iees earned 42.000

I Depreciation expense-Equipment 15,000.,/

1

Salaries expense 30,000 1.200.,/

t expense 5.625 1,875./ 1- --Supplies expense 3,500.,/'

1 Totals 1$ 212,250 1$ 212,250 ,$ . 30.775

2. Prepare journal entries for the adjustments entered in the six-column table for part 1.

Date General Journal

dee. 31, 2013 Salaries expense

salaries payaf)le

dee. 31, 2013 Supplies expense

Supplies

dee. 31, 2013 Interest expense

Interest payable

dee. 31, 2013 Unearned member fees

Member fees earned

dee. 31. 2013 Accounts receivable

Member fees earned

dee. 31, 2013 Depreciation expense-Equipment

Accumulated depreciation-Equipment ---~

Debit Credit

.I 1.200.,/

.I 1,200.,I

.I 3.500.,I +---=--!

.I 3,500./

.I 1,875./

.I 1,875.,I

9.200.,I

9,200.,/

9,300.,I

9,300.,I

15,000.,I

15,000.,/

3. Prepare journal entries to reverse the effects of the adjusting entries that involve accruals. {If no reversing entry is required, select "No reversing entry required.")

Date

jan. 1. 2014

jan. 1, 2014

jan. 1. 2014

General Journal

Salaries payable

Salaries expense

No reversing entry required

Interest payable

!merest expense

jan. 1. 2014 Member fees earned

Accounts receivable

jan. 1, 2014 No reversing ento; required

jan. 1, 2014 'No reversing entry required

Debit Credit

.I 1.200.,I

./ 1,200.,/1

1,875.,I

9,300.,/

+ _j

1,875.,I

9 ,300.,I

4. Prepare journal entries to record the cash payments and cash collections described for January. (Assume reversing entries were prepared.)

Date

jan. 4, 2014 Salaries expense

Cash

jan. 15, 2014 Interest expense

Cash

jan. 31, 2014 .Cash

General Journal

Member fees earned

Debit Credit

.I 1.500.,I

.I l ,500.,I

.I

.I' 2.250.,/

19,300.,I

----

2 ,250.,I

19,300.,/

$

Adjusted

Trial Balance

Cr. Dr. Cr.

$ 14,00o.,.I

x 3,500.,I 3,000.,I

135,000.,I

15.000.,I 45,000.,/

1,875.,I 1,875.,I

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

5,800.,I

75,000.,/

50,250.,I

21,125.,I

9.200.,/ 60,500.,/

9 ,300.,I

15,000.,I

31,20o.,.I

7,500./

3.500.,/

40.075 s 230.325 $ 239,625