financialaccountin draft

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Penn Foster College *

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061472

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Accounting

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Apr 3, 2024

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------------------------------------------------------------------ Date | Account | Debit | Credit | Post Ref. ------------------------------------------------------------------ Jan 9, 2018 | Advertising Expense | $850 | | J3 General Ledger - Office Supplies Expense ------------------------------------------------------------------ Date | Account | Debit | Credit | Post Ref. ------------------------------------------------------------------ Jan 10, 2018| Office Supplies Expense | $75 | | J4 General Ledger - Telephone Expense ------------------------------------------------------------------ Date | Account | Debit | Credit | Post Ref. ------------------------------------------------------------------ Jan 20, 2018| Telephone Expense | $660 | | J6 General Ledger - Utility Expense ------------------------------------------------------------------ Date | Account | Debit | Credit | Post Ref. ------------------------------------------------------------------ Jan 20, 2018| Utility Expense | $2,925 | | J7 | Accounts Payable | | $2,925 | J7 #4 Calculated balances in the general ledger accounts General Ledger - Prepaid Rent Prepaid Rent: $12,000 General Ledger - Accounts Receivable Accounts Receivable: $7,375 General Ledger - Cash Cash: $5,885 General Ledger - Advertising Expense Advertising Expense: $850 General Ledger - Office Supplies Expense Office Supplies Expense: $420 General Ledger - Service Revenue Service Revenue: $8,375 #5

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Unadjusted Trial Balance ----------------------------------------------------------- Account | Debit | Credit ----------------------------------------------------------- Prepaid Rent | $12,000 | Accounts Receivable | $7,375 | Cash | $5,885 | Advertising Expense | $850 | Office Supplies Expense | $420 | Service Revenue | | $8,375 ----------------------------------------------------------- Total | $26,530 | $8,375 #6 a. Adjustment for Prepaid Rent: -------------------------------------------------------------- Date | Account | Debit | Credit | Post Ref. -------------------------------------------------------------- MM/DD/YYYY | Rent Expense | $X | | | Prepaid Rent | | $X | -------------------------------------------------------------- b. Adjusting Entry for Depreciation of Vehicles: -------------------------------------------------------------- Date | Account | Debit | Credit | Post Ref. -------------------------------------------------------------- MM/DD/YYYY | Depreciation Expense | $1,000 | | | Accumulated Depreciation | | $1,000| -------------------------------------------------------------- c. Adjusting Entry for Depreciation of Equipment: -------------------------------------------------------------- Date | Account | Debit | Credit | Post Ref. -------------------------------------------------------------- MM/DD/YYYY | Depreciation Expense | $100 | | | Accumulated Depreciation | | $100 | -------------------------------------------------------------- Please note that the dates (MM/DD/YYYY) should be replaced with the actual date of the adjusting entries. Also, the amounts in the debit and credit columns may vary depending on the specific details provided. #7

Capital | $X | Drawings | $X | Revenue | $X | ---------------------------------------------- Total Debit: $XXX Total Credit: $XXX Total Credit: $XXX This adjusted trial balance shows the updated balances after considering the adjusting journal entries. Remember to replace the values ($X) with the actual balances from your general ledger accounts. #9 J & L Accounting, Inc. Income Statement For the Year Ended [Date] Sales $X Cost of Goods Sold $X ---------------------------------------------- Gross Profit $X Operating Expenses: Utilities Expense $X Supplies Expense $X Insurance Expense $X Interest Expense $X Income Tax Expense $X ---------------------------------------------- Total Operating Expenses $X Net Income $X ============================================== In the income statement, we start with the sales amount and subtract the cost of goods sold to calculate the gross profit. Then, we list out the operating expenses, including utilities expense, supplies expense, insurance expense, interest expense, and income tax expense. The total operating expenses are then deducted from the gross profit to arrive at the net income.Please note that these amounts are placeholders and you'll need to replace them with the actual values from the adjusted trial balance.

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#10 To close the revenue, expense, and dividend accounts to the retained earnings account, we need to make closing journal entries in the general journal. Here are the entries: Closing Journal Entries Date: [closing date] 1. Close Revenue Accounts: Debit: Revenue Accounts (list individual accounts) $X Credit: Retained Earnings Account $X 2. Close Expense Accounts: Debit: Retained Earnings Account $X Credit: Expense Accounts (list individual accounts) $X 3. Close Dividend Account: Debit: Retained Earnings Account $X Credit: Dividend Account $X Please note that you should replace the placeholders (e.g., $X) with the actual amounts from the revenue, expense, and dividend accounts. Additionally, make sure to list individual revenue and expense accounts separately in the entries. #11 Certainly! To post the closing journal entries to the respective general ledger accounts, we'll need to update the balances in the appropriate accounts. Here's how you can do it: Assuming you have the following accounts in your general ledger: 1. Retained Earnings Account 2. Revenue Accounts (multiple accounts) 3. Expense Accounts (multiple accounts) 4. Dividend Account Let's use the closing journal entries from the previous response to update the accounts: Closing Journal Entries: 1. Close Revenue Accounts: Debit: Revenue Accounts $X Credit: Retained Earnings Account $X To post this entry, debit the total amount of revenue to the Retained Earnings Account and credit each individual revenue account for their respective amounts.

2. Close Expense Accounts: Debit: Retained Earnings Account $X Credit: Expense Accounts $X Post this entry by debiting the Retained Earnings Account for the total amount of expenses and crediting each individual expense account for their respective amounts. 3. Close Dividend Account: Debit: Retained Earnings Account $X Credit: Dividend Account $X Post this entry by debiting the Retained Earnings Account for the total amount of dividends and crediting the Dividend Account. Remember to update the account balances accordingly after posting each of these journal entries. #12 To calculate the balances in the general ledger accounts, you would need to consider the opening balances, transactions recorded during the accounting period, and the closing entries. It's important to have specific information about the transactions and their amounts in order to accurately calculate the balances. Here's a general process to calculate the balances in the general ledger accounts: 1. Start with the opening balances: Note down the initial balances of each account from the beginning of the accounting period. 2. Record transactions: Review the journal entries and record the transaction details in the respective general ledger accounts. Make sure to include the debit and credit amounts for each transaction. 3. Calculate the net balance: Sum up the debits and credits for each account separately. The net balance is calculated by subtracting the total credits from the total debits (debit - credit). 4. Apply closing entries: Apply the closing entries to appropriate accounts. For example, revenue accounts are closed by transferring the balances to the Retained Earnings Account, while expenses and dividends are closed by transferring their balances to the Retained Earnings Account as well. 5. Verify the balances: After applying the closing entries, verify that the sum of all debit balances equals the sum of all credit balances. This ensures that the accounting equation (Assets = Liabilities + Equity) remains in balance. Remember, the specific calculations for each account will depend on the transactions recorded and the information available. It is recommended to use a software or spreadsheet to assist in the calculation.

#13 To create a post-closing trial balance from the balances in the general ledger accounts, you would follow these steps: 1. Gather the balances: Collect the final balances of all general ledger accounts after applying the closing entries. 2. Exclude temporary accounts: Temporary accounts such as revenue, expense, and dividend accounts should not be included in the post-closing trial balance. These accounts have already been closed out to the retained earnings account. 3. List the accounts: Create a table or spreadsheet with columns for account names and their respective balances. 4. Enter the accounts: List the account names in the first column of the table. Transfer the final balances from the general ledger accounts to the corresponding rows in the balance column. 5. Total the balances: Calculate the total of all the balances in the balance column. 6. Verify accuracy: Double-check that the total debit balance equals the total credit balance. This confirms that the accounting equation (assets = liabilities + equity) is in balance. The resulting post-closing trial balance will show the permanent accounts and their final balances after the closing process. It can be used as a starting point for the next accounting period. #14 To create the balance sheet for J & L Accounting, Inc. using the information from the post-closing trial balance, we will need to categorize the accounts into their respective balance sheet sections: assets, liabilities, and equity. Here's an example of how the balance sheet might look: J & L Accounting, Inc. Balance Sheet As of [Date] Assets: Cash: $50,000 Accounts Receivable: $25,000 Inventory: $40,000 Furniture and Fixtures: $20,000 Total Assets: $135,000

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Liabilities: Accounts Payable: $15,000 Notes Payable: $10,000 Total Liabilities: $25,000 Equity: Common Stock: $50,000 Retained Earnings: $60,000 Total Equity: $110,000 Total Liabilities and Equity: $135,000 #15 To create the statement of retained earnings for J & L Accounting, Inc. using the ending balance from the prior period's statement of retained earnings and the net income from the income statement for the January accounting period, we can follow these steps: 1. Start with the opening balance of retained earnings from the prior period's statement of retained earnings. 2. Add the net income from the income statement for the January accounting period. Since no dividends were paid out during the month of January, the net income will be the same as the net income before taxes. 3. Calculate the total by adding the opening balance of retained earnings and the net income. Here's an example of how the statement of retained earnings might look: J & L Accounting, Inc. Statement of Retained Earnings For the Month Ended January [Year] Retained Earnings, January 1: $60,000 (opening balance) Net Income for January: $10,000 (net income before taxes) Total: $70,000 In this example, the opening balance of retained earnings is $60,000, and the net income for January is $10,000. Adding these two amounts gives us a total of $70,000. Please note that this is a simplified example, and the statement of retained earnings may differ depending on the specific financial information provided. It's important to accurately reflect the balances and adjust for any additional factors in accordance with the applicable accounting standards.