EXCEL TEMPLATES - Chapter 3

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Northern Alberta Institute of Technology *

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ACCT1115

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Accounting

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Apr 3, 2024

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DO IT! 3-3 Transaction Analysis # Description Accounts Impacted Type of Account Increase or Decrease Debit/Credit Amount 1 ' Jan 1 Green Robin issued 1,000 common shares in exchange for $5,000 cash. 2 ' Jan 1 3 ' Jan 1 4 ' Jan 15 Green Robin sold $1,000 of services on account. 5 ' Jan 31 6 ' Jan 31 The company paid $400 in wages to employees. (Needed for pivot table) The company rented a retail location, paying $3,000 in rent for January, February and March. The company took out a bank loan for $6,000 and purchased new equipment. The equipment will be depreciated at 2% per month. The company received $500 from its customers as payments on their accounts that originated January 15.

DO IT! 3-3 Date Account Titles Debit Credit Required 1. For transactions (1) to (6), record the journal entry 2. For transactions (1) to (6), post the transactions to the appropriate T-Accounts 3. Bonus- Could you sum the accounts using a pivot table instead of manually posting to T-Accounts?

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Cash Accounts Receivable Prepaid Rent Equipment Bank Loan Wages Expense Service Revenue Common Shares

DO IT! 3-3 Transaction Analysis # Description Accounts Impacted Type of Account Increase or Decrease Debit/Credit Amount 1 ' Jan 1 Green Robin issued 1,000 common shares in exchange for $5,000 cash. Cash Asset Increase Debit 5,000 Common Shares Common Shares Increase Credit 5,000 2 ' Jan 1 Prepaid Rent Asset Increase Debit 3,000 Cash Asset Decrease Credit (3,000) 3 ' Jan 1 Equipment Asset Increase Debit 6,000 Bank Loan Liability Increase Credit 6,000 4 ' Jan 15 Green Robin sold $1,000 of services on account. Accounts Receivable Asset Increase Debit 1,000 Service Revenue Revenue Increase Credit 1,000 5 ' Jan 31 Cash Asset Increase Debit 500 Accounts Receivable Asset Decrease Credit (500) 6 ' Jan 31 The company paid $400 in wages to employees. Wages Expense Expense Increase Debit 400 Cash Asset Decrease Credit (400) (Needed for pivot table) The company rented a retail location, paying $3,000 in rent for January, February and March. The company took out a bank loan for $6,000 and purchased new equipment. The equipment will be depreciated at 2% per month. The company received $500 from its customers as payments on their accounts that originated January 15.

DO IT! 3-3 Date Account Titles Debit Credit Cash 5,000 Common Shares 5,000 Prepaid Rent 3,000 Cash 3,000 Equipment 6,000 Bank Loan 6,000 Accounts Receivable 1,000 Service Revenue 1,000 Cash 500 Accounts Receivable 500 Wages Expense 400 Cash 400 Required 1. For transactions (1) to (6), record the journal entry 2. For transactions (1) to (6), post the transactions to the appropriate T-Accounts 3. Bonus- Could you sum the accounts using a pivot table instead of manually posting to T-Accounts?

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Cash Accounts Receivable Prepaid Rent Equipment Bank Loan Wages Expense Service Revenue Common Shares

Accounts Impacted Sum of Amount Accounts Receivable 500 Bank Loan 6,000 Cash 2,100 Common Shares 5,000 Equipment 6,000 Prepaid Rent 3,000 Service Revenue 1,000 Wages Expense 400 Total Result 24,000

Transaction Ana January Description Accounts Impacted Type of Account 1 Issued common shares for $200,000 cash. 2 Purchased $475,000 of inventory on account. 3 4 Collected $580,000 from customers on account. 5 6 Bought a delivery truck for $36,000 cash. 7 Paid $26,000 for rent, including $2,000 related to the next year. 8 Incurred $20,000 of operating expenses, of which $18,000 was paid. 9 Recorded $2,000 of depreciation on the vehicle. 10 Declared and paid dividends of $6,000. 1-Jan 2-Jan 3-Jan 4-Jan 5-Jan 6-Jan 7-Jan Sold inventory on account for $640,000. The original cost of the inventory that was sold was $380,000. Paid $430,000 to suppliers for the inventory previously purchased on account. Required 1. For transactions (1) to (10), record the journal entry 2. For transactions (1) to (10), post the transactions to the appropriate T-Accounts 3. Bonus- Could you sum the accounts using a pivot table instead of manually posting to T-Accounts? To help create the pivot table, fill in the "amount" column above, ensuring that any decreases to accounts are entered as negative numbers.

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8-Jan

DO IT! 3-4 (Adapted from AP 3-7A) Sweet Dreams Chocolatiers Ltd. began operations on January 1, 2020. During its first year, the following transactions occurred: Transaction Analysis January Description Accounts Impacted Type of Account Amount 1 Issued common shares for $200,000 cash. Cash Asset Increase Debit 200,000 Common Shares Common Shares Increase Credit 200,000 2 Purchased $475,000 of inventory on account. Inventory Asset Increase Debit 475,000 Accounts Payable Liability Increase Credit 475,000 3 Accounts Receivable Asset Increase Debit 640,000 Sales Revenue Revenue Increase Credit 640,000 COGS Expense Increase Debit 380,000 Inventory Asset Decrease Credit (380,000) 4 Collected $580,000 from customers on account. Cash Asset Increase Debit 580,000 Accounts Receivable Asset Decrease Credit (580,000) 5 Accounts Payable Liability Decrease Debit (430,000) Cash Asset Decrease Credit (430,000) 6 Bought a delivery truck for $36,000 cash. Delivery Truck Asset Increase Debit 36,000 Cash Asset Decrease Credit (36,000) 7 Paid $26,000 for rent, including $2,000 related to the next year. Rent Expense Expense Increase Debit 24,000 Prepaid Rent Asset Increase Debit 2,000 Cash Asset Decrease Credit (26,000) 8 Incurred $20,000 of operating expenses, of which $18,000 was paid. Operating Expenses Expense Increase Debit 20,000 Cash Asset Decrease Credit (18,000) Accounts Payable Liability Increase Credit 2,000 9 Recorded $2,000 of depreciation on the vehicle. Depreciation Expense Expense Increase Debit 2,000 C-Asset Increase Credit 2,000 10 Declared and paid dividends of $6,000. Dividends Declared Dividend Increase Debit 6,000 Cash Asset Decrease Credit (6,000) Increase or Decrease Debit/ Credit Sold inventory on account for $640,000. The original cost of the inventory that was sold was $380,000. Paid $430,000 to suppliers for the inventory previously purchased on account. Accumulated Depreciation, Vehicles

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1-Jan Cash 200,000 Common Shares 200,000 2-Jan Inventory 475,000 Accounts Payable 475,000 3-Jan Accounts Receivable 640,000 Sales Revenue 640,000 Cost of Goods Sold 380,000 Inventory 380,000 4-Jan Cash 580,000 Accounts Receivable 580,000 5-Jan Accounts Payable 430,000 Cash 430,000 6-Jan Delivery Truck 36,000 Cash 36,000 7-Jan Rent Expense 24,000 Prepaid Rent 2,000 Cash 26,000 8-Jan Operating Expenses 20,000 Cash 18,000 Accounts Payable 2,000 Required 1. For transactions (1) to (10), record the journal entry 2. For transactions (1) to (10), post the transactions to the appropriate T-Accounts 3. Bonus- Could you sum the accounts using a pivot table instead of manually posting to T-Accounts?

9-Jan Depreciation Expense 2,000 Accumulated Depreciation 2,000 1/10//2019 Dividends Declared 6,000 Cash 6,000 Nikki: This was updated as it previously was depreciation expense.

DO IT! 3-4 (Adapted from AP 3-7A) Bonus Pivot table, organized accounts by classification (CA, NCA, CL, NCL, SE, Rev, Exp) and formatted Accounts Impacted Sum of Amount (empty) Total Result

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DO IT! 3-4 (Adapted from Cash Accounts Receivable 1-Jan 200,000 3-Jan 640,000 4-Jan 580,000 580,000 4-Jan 430,000 5-Jan 36,000 6-Jan 26,000 7-Jan 18,000 8-Jan 60,000 6,000 15-Jan 264,000 Prepaid Rent Inventory 7-Jan 2,000 2-Jan 475,000 380,000 3-Jan 2,000 95,000 Vehicles Accumulated Depreciation, Vehicles 6-Jan 36,000 2,000 7-Jan 36,000 2,000 Accounts Payable Sales Revenue 475,000 2-Jan 640,000 3-Jan 5-Jan 430,000 2,000 8-Jan 47,000 640,000 Cost of Goods Sold Rent Expense

3-Jan 380,000 7-Jan 24,000 380,000 24,000 Operating Expenses Depreciation Expense 8-Jan 20,000 9-Jan 2,000 20,000 2,000 Common Shares 200,000 1-Jan 10-Jan 6,000 200,000 Declared

pted from AP 3-9A) e for Cozy Fireplaces Inc. for December 31, 2020, follows: Debit balances Credit balances Cash $ 89,000 Accounts receivable 38,000 Inventory 95,000 Supplies 5,000 Prepaid rent 46,000 Land 80,000 Building 150,000 Accumulated depreciation, building $ 19,500 Accounts payable 21,400 Wages payable 0 Interest payable 0 Income tax payable 0 Unearned revenue 12,400 Bank loan payable 40,000 Common shares 150,000 Retained earnings 16,700 Sales revenue 840,000 Cost of goods sold 482,000 Wages expense 95,000 Rent expense 0 Supplies expense 0 Depreciation expense 0 Interest expense 0 Miscellaneous expense 14,000 Income tax expense 0 Dividends declared 6,000 Totals $1,100,000 $1,100,000 from customers were for future deliveries. As at December 31, three-quarters of these goods had been delivered. 00 in wages owed at year end. n advance on the last day of each month. There is $4,000 in the account related to January 2021. e supplies at year end revealed that $500 of supplies were still on hand. is being depreciated over 20 years with a residual value of $20,000. n was taken out on April 1, 2020. The first interest payment is due on April 1, 2021. The interest rate is 9%. tion for adjusting entries: Account Titles Debit Credit

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justing entries are needed, and identify two key things that should be kept in mind when preparing them. erences between Accumulated Depreciation and Depreciation Expense.

pted from AP 3-9A) e for Cozy Fireplaces Inc. for December 31, 2020, follows: Debit balances Cash $ 89,000 Accounts receivable 38,000 Inventory 95,000 Supplies 5,000 Prepaid rent 46,000 Land 80,000 Building 150,000 Accumulated depreciation, building $ 19,500 Accounts payable 21,400 Wages payable 0 Interest payable 0 Income tax payable 0 Unearned revenue 12,400 Bank loan payable 40,000 Common shares 150,000 Retained earnings 16,700 Sales revenue 840,000 Cost of goods sold 482,000 Wages expense 95,000 Rent expense 0 Supplies expense 0 Depreciation expense 0 Interest expense 0 Miscellaneous expense 14,000 Income tax expense 0 Dividends declared 6,000 Totals $1,100,000 $1,100,000 from customers were for future deliveries. As at December 31, three-quarters of these goods had been delivered. 00 in wages owed at year end. n advance on the last day of each month. There is $4,000 in the account related to January 2021. e supplies at year end revealed that $500 of supplies were still on hand. is being depreciated over 20 years with a residual value of $20,000. n was taken out on April 1, 2020. The first interest payment is due on April 1, 2021. The interest rate is 9%. tion for adjusting entries: Account Titles Debit Credit Unearned Revenue 9,300 Sales Revenue 9,300 Wages Expense 2,000 Wages Payable 2,000 Rent Expense 42,000 Prepaid Rent 42,000 Supplies Expense 4,500 Supplies 4,500 Depreciation Expense 6,500 Accumulated Depreciation, Building 6,500 Interest Expense 2,700 Interest Payable 2,700 Credit balances

erences between Accumulated Depreciation and Depreciation Expense. pense is the allocation of part of the cost of long lived items such as equipment to each od as the asset is used and its economic benefits consumed. Each year’s allocation is recognized expense on the Statement of Income. Accumulated depreciation is a contra account to the non- d appears on the Statement of Financial Position. It represents the total of all the depreciation s been recognized for the specific asset up to the reporting date. justing entries are needed, and identify two key things that should be kept in mind when

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Do It! 3-7 (Adapted from AP 3-6A) Chapati Company started business on January 1, 2020. Some of the events that occurred in its first year of operations follow: # Description Accounts Impacted Type of Account Increase or Decrease 1 2 During the year, inventory costing $140,000 was purchased, all on account. 3 4 Payments to suppliers for inventory that had been purchased earlier totalled $110,000. 5 Collections from customers on account during the year totalled $140,000. 6 Customers paid $25,000 in advance payments for goods that will be delivered later. 7 8 Wages totalling $44,000 were paid to employees during the year. 9 The board of directors declared dividends of $12,000 in December 2020, to be paid in January 2021. Adjusting items for the year ended December 31, 2020: 10 Recorded the insurance expense for the year. 11 12 Recorded the interest expense on the note payable for the year. 13 14 An insurance policy was purchased on February 28 for $1,800. The insurance policy was for one year of coverage that began on March 1, 2020. Sales to customers totalled $200,000. Of these, $40,000 were cash sales. Cost of inventory was 120,000. Equipment that cost $140,000 was purchased on October 1 for $40,000 cash plus a two-year, 10% note with a principal amount of $100,000. The equipment that was purchased (in item 7) on October 1, 2020, is to be depreciated using the straight-line method, with an estimated useful life of 10 years and an estimated residual value of $20,000. It was determined that 80% of the goods that were paid for in advance (in item 6) had been delivered to the customers by the end of the year. The inventory delivered cost $10,000. In addition to the wages that were paid during the year, wages of $4,000 remained unpaid at the end of the year.

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Transaction Account Titles Debit Credit #1 #2 #2a Sale #2b Using Inventory #4 #5 #6 #7 #8 Required 1. Record the journal entries for the above transactions and adjusting items. 2. Bonus create a pivot table to determine the adjusted trial balances for each of the accounts.

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Do It! 3-7 (Adapted from AP 3-6A) Chapati Company started business on January 1, 2020. Some of the events that occurred in its first year of operations follow: # Description Accounts Impacted Type of Account Increase or Decrease 1 Prepaid Insurance Asset Increase Cash Asset Decrease 2 During the year, inventory costing $140,000 was purchased, all on account. Inventory Asset Increase Accounts Payable Liability Increase 3 Cash Asset Increase Accounts Receivable Asset Increase Sales Revenue Revenue Increase Cost of goods sold Expense Increase Inventory Asset Decrease 4 Payments to suppliers for inventory that had been purchased earlier totalled $110,000. Accounts Payable Liability Decrease Cash Asset Decrease 5 Collections from customers on account during the year totalled $140,000. Cash Asset Increase Accounts Receivable Asset Decrease 6 Customers paid $25,000 in advance payments for goods that will be delivered later. Cash Asset Increase Unearned Revenue Liability Increase 7 Equipment Asset Increase Notes Payable Liability Increase Cash Asset Decrease 8 Wages totalling $44,000 were paid to employees during the year. Wages Expense Expense Increase Cash Asset Decrease 9 The board of directors declared dividends of $12,000 in December 2020, to be paid in January 2021. Dividends Declared Dividends Declared Increase Dividends Payable Liability Increase Adjusting items for the year ended December 31, 2020: 10 Recorded the insurance expense for the year. Insurance Expense Expense Increase Prepaid Insurance Asset Decrease 11 Depreciation Expense Expense Increase C-Asset Increase 12 Recorded the interest expense on the note payable for the year. Interest Expense Expense Increase Interest Payable Liability Increase 13 Unearned Revenue Liability Decrease Sales Revenue Revenue Increase Cost of goods sold Expense Increase Inventory Asset Decrease 14 Wages Expense Expense Increase Wages Payable Liability Increase An insurance policy was purchased on February 28 for $1,800. The insurance policy was for one year of coverage that began on March 1, 2020. Sales to customers totalled $200,000. Of these, $40,000 were cash sales. Cost of inventory was 120,000. Equipment that cost $140,000 was purchased on October 1 for $40,000 cash plus a two-year, 10% note with a principal amount of $100,000. The equipment that was purchased (in item 7) on October 1, 2020, is to be depreciated using the straight-line method, with an estimated useful life of 10 years and an estimated residual value of $20,000. Accumulated Depreciation It was determined that 80% of the goods that were paid for in advance (in item 6) had been delivered to the customers by the end of the year. The inventory delivered cost $10,000. In addition to the wages that were paid during the year, wages of $4,000 remained unpaid at the end of the year.

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Transaction Account Titles Debit Credit #1 Prepaid Insurance 1,800 Cash 1,800 #2 Inventory 140,000 Accounts Payable 140,000 #2a Cash 40,000 Sale Accounts Receivable 160,000 Sales Revenue 200,000 #2b Cost of Goods Sold 120,000 Using Inventory Inventory 120,000 #4 Accounts Payable 110,000 Cash 110,000 #5 Cash 140,000 Accounts Receivable 140,000 #6 Cash 25,000 Unearned Revenue 25,000 #7 Equipment 140,000 Notes Payable 40,000 Cash 100,000 #8 Wages Expense 44,000 Cash 44,000 Required 1. Record the journal entries for the above transactions and adjusting items. 2. Bonus create a pivot table to determine the adjusted trial balances for each of the accounts.

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Accounts Impacted Sum of Amount Cash 9,200 SORTED IN ACCOUNT ORDER (ASSETS, LIABILITIES, EQU Accounts Receivable 20,000 Prepaid Insurance 300 Inventory 30,000 Equipment 140,000 Accumulated Depreciation (3,000) Accounts Payable 30,000 Dividends Payable 12,000 Unearned Revenue 45,000 Wages Payable 4,000 Interest Payable 2,500 Notes Payable 100,000 Sales Revenue 220,000 Cost of goods sold 130,000 Insurance Expense 1,500 Interest Expense 2,500 Wages Expense 48,000 Depreciation Expense 3,000 Dividends Declared 12,000 Total Result 807,000

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UITY, REVENUES, EXPENSES)

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Do It! 3-8 (Adapted from AP 3-8A) Date Description Accounts Impacted Type of Account Increase or Decrease 1-Sep 1-Sep OL paid $2,400 for an insurance policy on the new truck for the period September 1, 2020, to August 31, 2021. 5-Sep The company purchased inventory on credit at a cost of $13,000. 12-Sep 18-Sep 30-Sep OLDeclared a $15,000 dividend Adjusting items: 30-Sep 30-Sep OL made the necessary month-end adjusting entry related to the interest on the note payable. 30-Sep OL made the necessary month-end adjusting entry related to the insurance policy. Date Account Titles Debit Credit Offcopy Ltd. (OL) is an office supply company that also sells and services commercial office copiers. OL was founded in 2016 and has seen significant growth since then. OL's bookkeeper retired in August and her replacement has asked for your assistance in recording the following transactions from the month of September 2020. OL purchased a new delivery truck for $80,000, paying $30,000 cash and financing the balance using a note payable at 9% per annum. The note payable is due in 12 months, and interest on the note must be paid on the first day of every month, beginning on October 1, 2020. OL's management has determined that the truck will have a useful life of six years and a residual value of $8,000. Pinamalas University, one of OL's largest customers, signed a photocopy service contract with OL. The contract runs from October 1, 2020, to September 30, 2021, and will mean that OL services all of the university's photocopiers. In accordance with the contact terms, Pinamalas paid OL $7,500, representing the first month's service revenue under the contract. OL sold $16,000 of inventory, of which one-quarter was on account and the balance was cash. The cost to OL of the products sold was $10,500. OL made the necessary month-end adjusting entry related to the depreciation of the new delivery truck. Required 1. Record the journal entries for the above transactions and adjusting items.

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Do It! 3-8 (Adapted from AP 3-8A) Date Description Accounts Impacted Type of Account Increase or Decrease Delivery Truck Asset Increase 1-Sep Notes Payable Liability Increase Cash Asset Decrease 1-Sep OL paid $2,400 for an insurance policy on the new truck for the period September 1, 2020, to August 31, 2021. Prepaid Insurance Asset Increase Cash Asset Decrease 5-Sep The company purchased inventory on credit at a cost of $13,000. Inventory Asset Increase Accounts Payable Liability Increase 12-Sep Cash Asset Increase Unearned Revenue Liability Increase 18-Sep Cash Asset Increase Accounts Receivable Asset Increase Sales Revenue Revenue Increase Inventory Asset Decrease Cost of goods sold Expense Increase 30-Sep OLDeclared a $15,000 dividend Dividends Declared Dividends Declared Decrease Dividends Payable Liability Increase Adjusting items: 30-Sep Depreciation Expense Expense Increase C-Asset Increase 30-Sep OL made the necessary month-end adjusting entry related to the interest on the note payable. Interest Expense Expense Increase Interest Payable Liability Increase 30-Sep OL made the necessary month-end adjusting entry related to the insurance policy. Insurance Expense Expense Increase Prepaid Insurance Asset Decrease Date Account Titles Debit Credit 9/1/2019 Delivery Truck 80,000 Notes Payable 50,000 Cash 30,000 Offcopy Ltd. (OL) is an office supply company that also sells and services commercial office copiers. OL was founded in 2016 and has seen significant growth since then. OL's bookkeeper retired in August and her replacement has asked for your assistance in recording the following transactions from the month of September 2020. OL purchased a new delivery truck for $80,000, paying $30,000 cash and financing the balance using a note payable at 9% per annum. The note payable is due in 12 months, and interest on the note must be paid on the first day of every month, beginning on October 1, 2020. OL's management has determined that the truck will have a useful life of six years and a residual value of $8,000. Pinamalas University, one of OL's largest customers, signed a photocopy service contract with OL. The contract runs from October 1, 2020, to September 30, 2021, and will mean that OL services all of the university's photocopiers. In accordance with the contact terms, Pinamalas paid OL $7,500, representing the first month's service revenue under the contract. OL sold $16,000 of inventory, of which one-quarter was on account and the balance was cash. The cost to OL of the products sold was $10,500. OL made the necessary month-end adjusting entry related to the depreciation of the new delivery truck. Accumulated Depreciation Required 1. Record the journal entries for the above transactions and adjusting items.

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9/1/2019 Prepaid Insurance 2,400 Cash 2,400 9/5/2019 Inventory 13,000 Accounts Payable 13,000 9/12/2019 Cash 7,500 Unearned Revenue 7,500 9/18/2019 Cash 12,000 Sale Accounts Receivable 4,000 Revenue 16,000 9/18/2019 Cost of Goods Sold 10,500 Using Inventory Inventory 10,500 9/30/2019 Dividends Declared 15,000 Dividends Payable 15,000 9/30/2019 Depreciation expense 1,000

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DO IT! 3-9 (a) Net Income Retained Earnings Date Account Titles Debit Credit 31-Dec 31-Dec 31-Dec 31-Dec The adjusted trial balance for Nguyen Corporation shows the following selected account balances at December 31: Dividends Declared $700; Common Shares $30,000; Retained Earnings $12,000; Service Revenue $18,000; Rent Expense $1,500; Supplies Expense $500; Salaries Expense $8,000; Income Tax Expense $1,000. Required (a) Calculate net income and ending retained earnings. (b) Prepare the closing entries. Discussion: Explain why closing entries are made. What are the two objectives that are accomplished by making closing entries?

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DO IT! 3-9 (a) Net Income Service Revenue 18,000 Rent Expense 1,500 Supplies Expense 500 Salaries Expense 8,000 Income Tax Expense 1,000 Net Income 7,000 Retained Earnings Retained Earnings, Jan 1 12,000 Add Net Income 7,000 Less Dividends Declared 700 Retained Earnings, Dec 31 18,300 Date Account Titles Debit Credit 31-Dec Service Revenue 18,000 Income Summary 18,000 31-Dec Income Summary 11,000 Rent Expense 1,500 Supplies Expense 500 Salaries Expense 8,000 Income Tax Expense 1,000 31-Dec Income Summary 7,000 Retained Earnings 7,000 31-Dec Retained Earnings 700 Dividends Declared 700 The adjusted trial balance for Nguyen Corporation shows the following selected account balances at December 31: Dividends Declared $700; Common Shares $30,000; Retained Earnings $12,000; Service Revenue $18,000; Rent Expense $1,500; Supplies Expense $500; Salaries Expense $8,000; Income Tax Expense $1,000. Required (a) Calculate net income and ending retained earnings. (b) Prepare the closing entries. Discussion: Explain why closing entries are made. What are the two objectives that are accomplished by making closing entries? Closing entries transfer the net result of all temporary account balances to retained earnings and bring the temporary account balances to $0. They are made so that (1) retained earnings is brought up to the reporting date correct balance for the statement of financial position (2) the temporary accounts can begin the next accounting fiscal year with zero balances.

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Do It! 3-10 (Adapted from AP 3-10A) Presented below are the balances from Elsie's Electronics Ltd.'s general ledger as at September 30, 2020: DR CR Cash 28,000 Accounts receivable 35,000 Inventory 65,000 Equipment 331,000 150,000 Accounts payable 120,000 Bank loan payable 70,000 Unearned revenue 22,000 Common shares 10,000 Retained earnings 70,000 Dividends declared 18,000 Sales revenue 488,000 Interest revenue 2,000 Cost of goods sold 316,000 Wages expense 70,000 Rent expense 26,000 Depreciation expense 43,000 Required Prepare the necessary closing entries for Elsie's Electronics at September 30 Date Account Titles Debit Credit 30-Sep 30-Sep 30-Sep 31-Dec Accumulated depreciation, equipment

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Do It! 3-10 (Adapted from AP 3-10A) Presented below are the balances from Elsie's Electronics Ltd.'s general ledger as at September 30, 2020: DR CR Cash 28,000 Accounts receivable 35,000 Inventory 65,000 Equipment 331,000 150,000 Accounts payable 120,000 Bank loan payable 70,000 Unearned revenue 22,000 Common shares 10,000 Retained earnings 70,000 Dividends declared 18,000 Sales revenue 488,000 Interest revenue 2,000 Cost of goods sold 316,000 Wages expense 70,000 Rent expense 26,000 Depreciation expense 43,000 Required Prepare the necessary closing entries for Elsie's Electronics at September 30 Date Account Titles Debit Credit 30-Sep Sales revenue 488,000 Interest revenue 2,000 Income Summary 490,000 30-Sep Income Summary 455,000 Cost of goods sold 316,000 Wages expense 70,000 Rent expense 26,000 Depreciation expense 43,000 30-Sep Income Summary 35,000 Retained Earnings 35,000 31-Dec Retained Earnings 18,000 Dividends Declared 18,000 Accumulated depreciation, equipment

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Account List Type Increase Decrease Accounts Payable Asset Increase Accounts Receivable Liability Decrease Accumulated Depreciation Common Shares Bank Loan Revenue Common Shares Expense Cash Dividends Declared Cost of Goods Sold Retained Earnings Delivery Truck C-Asset Depreciation Expense Dividends Declared Dividends Payable Equipment Income Summary Income Tax Expense Insurance Expense Interest Expense Interest Payable Interest Revenue Inventory Inventory Expense Loans Payable Notes Payable Operating Expenses Prepaid Insurance Prepaid Rent Rent Expense Retained Earnings Sales Revenue Service Revenue Supplies Supplies Expense Unearned Revenue Utilities Expense Wages Expense Wages Payable Salaries Expense

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Debit Credit Debit Credit

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EXCEL TEMPLATES - Chapter 3

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