The work sheet for Major Advising to complete this exercise is as follows. 1. Prepare the closing entries. If an amount box does not require an entry, leave it blank. Do not enter the posting references until you complete part 2. 2. Post the closing entries to the T accounts. If there is more than one closing entry for an account, enter in the order given in the journal. Then complete the posting in part 1. Major Advising Work Sheet (Partial) For Month Ended January 31, 20 -- Income Statement Balance Sheet Account Title Debit Credit Debit Credit Cash 1,342 Accounts Receivable 933 Supplies 335 Prepaid Insurance 856 Office Equipment 3,510 Accum. Depr.—Office Equipment 185 Accounts Payable 981 Wages Payable 319 Ed Major, Capital 4,147 Ed Major, Drawing 915 Advising Fees 4,199 Wages Expense 738 Advertising Expense 94 Rent Expense 499 Supplies Expense 126 Phone Expense 77 Electricity Expense 53 Insurance Expense 99 Gas and Oil Expense 48 Depr. Expense—Office Equipment 185 Miscellaneous Expense 21 1,940 4,199 7,891 5,632 Net Income 2,259 2,259 4,199 4,199 7,891 7,891 A chart of accounts is provided below. Chart of Accounts Assets Revenues 101 Cash 401 Advising Fees 122 Accounts Receivable 141 Supplies Expenses 145 Prepaid Insurance 511 Wages Expense 181 Office Equipment 512 Advertising Expense 181.1 Accum. Depr.—Office Equip. 521 Rent Expense 524 Supplies Expense Liabilities 525 Phone Expense 202 Accounts Payable 533 Electricity Expense 219 Wages Payable 535 Insurance Expense 538 Gas and Oil Expense 541 Depr. Exp.—Office Equip. Owner’s Equity 549 Miscellaneous Expense 311 Ed Major, Capital 312 Ed Major, Drawing 313 Income Summary Prepare Closing Entries 1. Prepare the closing entries. If an amount box does not require an entry, leave it blank. Do not enter the posting references until you complete part 2. Page: 1 DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 20-- Jan. 31 fill in the blank f909e1f3d021ff5_2 fill in the blank f909e1f3d021ff5_3 fill in the blank f909e1f3d021ff5_4 1 2 fill in the blank f909e1f3d021ff5_6 fill in the blank f909e1f3d021ff5_7 fill in the blank f909e1f3d021ff5_8 2 3 3 4 Jan. 31 fill in the blank f909e1f3d021ff5_10 fill in the blank f909e1f3d021ff5_11 fill in the blank f909e1f3d021ff5_12 4 5 fill in the blank f909e1f3d021ff5_14 fill in the blank f909e1f3d021ff5_15 fill in the blank f909e1f3d021ff5_16 5 6 fill in the blank f909e1f3d021ff5_18 fill in the blank f909e1f3d021ff5_19 fill in the blank f909e1f3d021ff5_20 6 7 fill in the blank f909e1f3d021ff5_22 fill in the blank f909e1f3d021ff5_23 fill in the blank f909e1f3d021ff5_24 7 8 fill in the blank f909e1f3d021ff5_26 fill in the blank f909e1f3d021ff5_27 fill in the blank f909e1f3d021ff5_28 8 9 fill in the blank f909e1f3d021ff5_30 fill in the blank f909e1f3d021ff5_31 fill in the blank f909e1f3d021ff5_32 9 10 fill in the blank f909e1f3d021ff5_34 fill in the blank f909e1f3d021ff5_35 fill in the blank f909e1f3d021ff5_36 10 11 fill in the blank f909e1f3d021ff5_38 fill in the blank f909e1f3d021ff5_39 fill in the blank f909e1f3d021ff5_40 11 12 fill in the blank f909e1f3d021ff5_42 fill in the blank f909e1f3d021ff5_43 fill in the blank f909e1f3d021ff5_44 12 13 fill in the blank f909e1f3d021ff5_46 fill in the blank f909e1f3d021ff5_47 fill in the blank f909e1f3d021ff5_48 13 14 fill in the blank f909e1f3d021ff5_50 fill in the blank f909e1f3d021ff5_51 fill in the blank f909e1f3d021ff5_52 14 15 15 16 Jan. 31 fill in the blank f909e1f3d021ff5_54 fill in the blank f909e1f3d021ff5_55 fill in the blank f909e1f3d021ff5_56 16 17 fill in the blank f909e1f3d021ff5_58 fill in the blank f909e1f3d021ff5_59 fill in the blank f909e1f3d021ff5_60 17 18 18 19 Jan. 31 fill in the blank f909e1f3d021ff5_62 fill in the blank f909e1f3d021ff5_63 fill in the blank f909e1f3d021ff5_64 19 20 fill in the blank f909e1f3d021ff5_66 fill in the blank f909e1f3d021ff5_67 fill in the blank f909e1f3d021ff5_68 20 21 21 Post Closing Entries 2. Post the closing entries to the T accounts. If there is more than one closing entry for an account, enter in the order given in the journal. Then complete the posting in part 1. Cash 101 Bal. 1,342 Accounts Receivable 122 Bal. 933 Supplies 141 Bal. 335 Prepaid Insurance 145 Bal. 856 Office Equipment 181 Bal. 3,510 Accum. Depr.—Office Equip. 181.1 Bal. 185 Accounts Payable 202 Bal. 981 Wages Payable 219 Bal. 319 Ed Major, Capital 311 Closing fill in the blank 1aab96f86056074_1 Bal. 4,147 Closing fill in the blank 1aab96f86056074_2 Bal. fill in the blank 1aab96f86056074_3 Ed Major, Drawing 312 Bal. 915 Closing fill in the blank 1aab96f86056074_4 Income Summary 313 Closing fill in the blank 1aab96f86056074_5 Closing fill in the blank 1aab96f86056074_6 Closing fill in the blank 1aab96f86056074_7 Advising Fees 401 Closing fill in the blank 1aab96f86056074_8 Bal. 4,199 Wages Expense 511 Bal. 738 Closing fill in the blank 1aab96f86056074_9 Advertising Expense 512 Bal. 94 Closing fill in the blank 1aab96f86056074_10
The work sheet for Major Advising to complete this exercise is as follows. 1. Prepare the closing entries. If an amount box does not require an entry, leave it blank. Do not enter the posting references until you complete part 2. 2. Post the closing entries to the T accounts. If there is more than one closing entry for an account, enter in the order given in the journal. Then complete the posting in part 1. Major Advising Work Sheet (Partial) For Month Ended January 31, 20 -- Income Statement Balance Sheet Account Title Debit Credit Debit Credit Cash 1,342 Accounts Receivable 933 Supplies 335 Prepaid Insurance 856 Office Equipment 3,510 Accum. Depr.—Office Equipment 185 Accounts Payable 981 Wages Payable 319 Ed Major, Capital 4,147 Ed Major, Drawing 915 Advising Fees 4,199 Wages Expense 738 Advertising Expense 94 Rent Expense 499 Supplies Expense 126 Phone Expense 77 Electricity Expense 53 Insurance Expense 99 Gas and Oil Expense 48 Depr. Expense—Office Equipment 185 Miscellaneous Expense 21 1,940 4,199 7,891 5,632 Net Income 2,259 2,259 4,199 4,199 7,891 7,891 A chart of accounts is provided below. Chart of Accounts Assets Revenues 101 Cash 401 Advising Fees 122 Accounts Receivable 141 Supplies Expenses 145 Prepaid Insurance 511 Wages Expense 181 Office Equipment 512 Advertising Expense 181.1 Accum. Depr.—Office Equip. 521 Rent Expense 524 Supplies Expense Liabilities 525 Phone Expense 202 Accounts Payable 533 Electricity Expense 219 Wages Payable 535 Insurance Expense 538 Gas and Oil Expense 541 Depr. Exp.—Office Equip. Owner’s Equity 549 Miscellaneous Expense 311 Ed Major, Capital 312 Ed Major, Drawing 313 Income Summary Prepare Closing Entries 1. Prepare the closing entries. If an amount box does not require an entry, leave it blank. Do not enter the posting references until you complete part 2. Page: 1 DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 20-- Jan. 31 fill in the blank f909e1f3d021ff5_2 fill in the blank f909e1f3d021ff5_3 fill in the blank f909e1f3d021ff5_4 1 2 fill in the blank f909e1f3d021ff5_6 fill in the blank f909e1f3d021ff5_7 fill in the blank f909e1f3d021ff5_8 2 3 3 4 Jan. 31 fill in the blank f909e1f3d021ff5_10 fill in the blank f909e1f3d021ff5_11 fill in the blank f909e1f3d021ff5_12 4 5 fill in the blank f909e1f3d021ff5_14 fill in the blank f909e1f3d021ff5_15 fill in the blank f909e1f3d021ff5_16 5 6 fill in the blank f909e1f3d021ff5_18 fill in the blank f909e1f3d021ff5_19 fill in the blank f909e1f3d021ff5_20 6 7 fill in the blank f909e1f3d021ff5_22 fill in the blank f909e1f3d021ff5_23 fill in the blank f909e1f3d021ff5_24 7 8 fill in the blank f909e1f3d021ff5_26 fill in the blank f909e1f3d021ff5_27 fill in the blank f909e1f3d021ff5_28 8 9 fill in the blank f909e1f3d021ff5_30 fill in the blank f909e1f3d021ff5_31 fill in the blank f909e1f3d021ff5_32 9 10 fill in the blank f909e1f3d021ff5_34 fill in the blank f909e1f3d021ff5_35 fill in the blank f909e1f3d021ff5_36 10 11 fill in the blank f909e1f3d021ff5_38 fill in the blank f909e1f3d021ff5_39 fill in the blank f909e1f3d021ff5_40 11 12 fill in the blank f909e1f3d021ff5_42 fill in the blank f909e1f3d021ff5_43 fill in the blank f909e1f3d021ff5_44 12 13 fill in the blank f909e1f3d021ff5_46 fill in the blank f909e1f3d021ff5_47 fill in the blank f909e1f3d021ff5_48 13 14 fill in the blank f909e1f3d021ff5_50 fill in the blank f909e1f3d021ff5_51 fill in the blank f909e1f3d021ff5_52 14 15 15 16 Jan. 31 fill in the blank f909e1f3d021ff5_54 fill in the blank f909e1f3d021ff5_55 fill in the blank f909e1f3d021ff5_56 16 17 fill in the blank f909e1f3d021ff5_58 fill in the blank f909e1f3d021ff5_59 fill in the blank f909e1f3d021ff5_60 17 18 18 19 Jan. 31 fill in the blank f909e1f3d021ff5_62 fill in the blank f909e1f3d021ff5_63 fill in the blank f909e1f3d021ff5_64 19 20 fill in the blank f909e1f3d021ff5_66 fill in the blank f909e1f3d021ff5_67 fill in the blank f909e1f3d021ff5_68 20 21 21 Post Closing Entries 2. Post the closing entries to the T accounts. If there is more than one closing entry for an account, enter in the order given in the journal. Then complete the posting in part 1. Cash 101 Bal. 1,342 Accounts Receivable 122 Bal. 933 Supplies 141 Bal. 335 Prepaid Insurance 145 Bal. 856 Office Equipment 181 Bal. 3,510 Accum. Depr.—Office Equip. 181.1 Bal. 185 Accounts Payable 202 Bal. 981 Wages Payable 219 Bal. 319 Ed Major, Capital 311 Closing fill in the blank 1aab96f86056074_1 Bal. 4,147 Closing fill in the blank 1aab96f86056074_2 Bal. fill in the blank 1aab96f86056074_3 Ed Major, Drawing 312 Bal. 915 Closing fill in the blank 1aab96f86056074_4 Income Summary 313 Closing fill in the blank 1aab96f86056074_5 Closing fill in the blank 1aab96f86056074_6 Closing fill in the blank 1aab96f86056074_7 Advising Fees 401 Closing fill in the blank 1aab96f86056074_8 Bal. 4,199 Wages Expense 511 Bal. 738 Closing fill in the blank 1aab96f86056074_9 Advertising Expense 512 Bal. 94 Closing fill in the blank 1aab96f86056074_10
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Question
The work sheet for Major Advising to complete this exercise is as follows.
1. Prepare the closing entries. If an amount box does not require an entry, leave it blank. Do not enter the posting references until you complete part 2.
2. Post the closing entries to the T accounts. If there is more than one closing entry for an account, enter in the order given in the journal. Then complete the posting in part 1.
| Major Advising Work Sheet (Partial) For Month Ended January 31, 20 -- |
||||
|---|---|---|---|---|
| Income Statement | ||||
| Account Title | Debit | Credit | Debit | Credit |
| Cash | 1,342 | |||
| 933 | ||||
| Supplies | 335 | |||
| Prepaid Insurance | 856 | |||
| Office Equipment | 3,510 | |||
| Accum. Depr.—Office Equipment | 185 | |||
| Accounts Payable | 981 | |||
| Wages Payable | 319 | |||
| Ed Major, Capital | 4,147 | |||
| Ed Major, Drawing | 915 | |||
| Advising Fees | 4,199 | |||
| Wages Expense | 738 | |||
| Advertising Expense | 94 | |||
| Rent Expense | 499 | |||
| Supplies Expense | 126 | |||
| Phone Expense | 77 | |||
| Electricity Expense | 53 | |||
| Insurance Expense | 99 | |||
| Gas and Oil Expense | 48 | |||
| Depr. Expense—Office Equipment | 185 | |||
| Miscellaneous Expense | 21 | |||
| 1,940 | 4,199 | 7,891 | 5,632 | |
| Net Income | 2,259 | 2,259 | ||
| 4,199 | 4,199 | 7,891 | 7,891 |
A chart of accounts is provided below.
| Chart of Accounts | ||||
| Assets | Revenues | |||
| 101 | Cash | 401 | Advising Fees | |
| 122 | Accounts Receivable | |||
| 141 | Supplies | Expenses | ||
| 145 | Prepaid Insurance | 511 | Wages Expense | |
| 181 | Office Equipment | 512 | Advertising Expense | |
| 181.1 | Accum. Depr.—Office Equip. | 521 | Rent Expense | |
| 524 | Supplies Expense | |||
| Liabilities | 525 | Phone Expense | ||
| 202 | Accounts Payable | 533 | Electricity Expense | |
| 219 | Wages Payable | 535 | Insurance Expense | |
| 538 | Gas and Oil Expense | |||
| 541 | Depr. Exp.—Office Equip. | |||
| Owner’s Equity | 549 | Miscellaneous Expense | ||
| 311 | Ed Major, Capital | |||
| 312 | Ed Major, Drawing | |||
| 313 | Income Summary | |||
Prepare Closing Entries
1. Prepare the closing entries. If an amount box does not require an entry, leave it blank. Do not enter the posting references until you complete part 2.
| DATE | DESCRIPTION | POST. REF. |
DEBIT | CREDIT | |||
|---|---|---|---|---|---|---|---|
| 1 | 20-- Jan. 31 | fill in the blank f909e1f3d021ff5_2 | fill in the blank f909e1f3d021ff5_3 | fill in the blank f909e1f3d021ff5_4 | 1 | ||
| 2 | fill in the blank f909e1f3d021ff5_6 | fill in the blank f909e1f3d021ff5_7 | fill in the blank f909e1f3d021ff5_8 | 2 | |||
| 3 | 3 | ||||||
| 4 | Jan. 31 | fill in the blank f909e1f3d021ff5_10 | fill in the blank f909e1f3d021ff5_11 | fill in the blank f909e1f3d021ff5_12 | 4 | ||
| 5 | fill in the blank f909e1f3d021ff5_14 | fill in the blank f909e1f3d021ff5_15 | fill in the blank f909e1f3d021ff5_16 | 5 | |||
| 6 | fill in the blank f909e1f3d021ff5_18 | fill in the blank f909e1f3d021ff5_19 | fill in the blank f909e1f3d021ff5_20 | 6 | |||
| 7 | fill in the blank f909e1f3d021ff5_22 | fill in the blank f909e1f3d021ff5_23 | fill in the blank f909e1f3d021ff5_24 | 7 | |||
| 8 | fill in the blank f909e1f3d021ff5_26 | fill in the blank f909e1f3d021ff5_27 | fill in the blank f909e1f3d021ff5_28 | 8 | |||
| 9 | fill in the blank f909e1f3d021ff5_30 | fill in the blank f909e1f3d021ff5_31 | fill in the blank f909e1f3d021ff5_32 | 9 | |||
| 10 | fill in the blank f909e1f3d021ff5_34 | fill in the blank f909e1f3d021ff5_35 | fill in the blank f909e1f3d021ff5_36 | 10 | |||
| 11 | fill in the blank f909e1f3d021ff5_38 | fill in the blank f909e1f3d021ff5_39 | fill in the blank f909e1f3d021ff5_40 | 11 | |||
| 12 | fill in the blank f909e1f3d021ff5_42 | fill in the blank f909e1f3d021ff5_43 | fill in the blank f909e1f3d021ff5_44 | 12 | |||
| 13 | fill in the blank f909e1f3d021ff5_46 | fill in the blank f909e1f3d021ff5_47 | fill in the blank f909e1f3d021ff5_48 | 13 | |||
| 14 | fill in the blank f909e1f3d021ff5_50 | fill in the blank f909e1f3d021ff5_51 | fill in the blank f909e1f3d021ff5_52 | 14 | |||
| 15 | 15 | ||||||
| 16 | Jan. 31 | fill in the blank f909e1f3d021ff5_54 | fill in the blank f909e1f3d021ff5_55 | fill in the blank f909e1f3d021ff5_56 | 16 | ||
| 17 | fill in the blank f909e1f3d021ff5_58 | fill in the blank f909e1f3d021ff5_59 | fill in the blank f909e1f3d021ff5_60 | 17 | |||
| 18 | 18 | ||||||
| 19 | Jan. 31 | fill in the blank f909e1f3d021ff5_62 | fill in the blank f909e1f3d021ff5_63 | fill in the blank f909e1f3d021ff5_64 | 19 | ||
| 20 | fill in the blank f909e1f3d021ff5_66 | fill in the blank f909e1f3d021ff5_67 | fill in the blank f909e1f3d021ff5_68 | 20 | |||
| 21 | 21 |
2. Post the closing entries to the T accounts. If there is more than one closing entry for an account, enter in the order given in the journal. Then complete the posting in part 1.
| Cash | 101 | ||
|---|---|---|---|
| Bal. | 1,342 |
| Accounts Receivable | 122 | ||
|---|---|---|---|
| Bal. | 933 |
| Supplies | 141 | ||
|---|---|---|---|
| Bal. | 335 |
| Prepaid Insurance | 145 | ||
|---|---|---|---|
| Bal. | 856 |
| Office Equipment | 181 | ||
|---|---|---|---|
| Bal. | 3,510 |
| Accum. Depr.—Office Equip. | 181.1 | ||
|---|---|---|---|
| Bal. | 185 |
| Accounts Payable | 202 | ||
|---|---|---|---|
| Bal. | 981 |
| Wages Payable | 219 | ||
|---|---|---|---|
| Bal. | 319 |
| Ed Major, Capital | 311 | ||
|---|---|---|---|
| Closing | fill in the blank 1aab96f86056074_1 | Bal. | 4,147 |
| Closing | fill in the blank 1aab96f86056074_2 | ||
| Bal. | fill in the blank 1aab96f86056074_3 |
| Ed Major, Drawing | 312 | ||
|---|---|---|---|
| Bal. | 915 | Closing | fill in the blank 1aab96f86056074_4 |
| Income Summary | 313 | ||
|---|---|---|---|
| Closing | fill in the blank 1aab96f86056074_5 | Closing | fill in the blank 1aab96f86056074_6 |
| Closing | fill in the blank 1aab96f86056074_7 |
| Advising Fees | 401 | ||
|---|---|---|---|
| Closing | fill in the blank 1aab96f86056074_8 | Bal. | 4,199 |
| Wages Expense | 511 | ||
|---|---|---|---|
| Bal. | 738 | Closing | fill in the blank 1aab96f86056074_9 |
| Advertising Expense | 512 | ||
|---|---|---|---|
| Bal. | 94 | Closing | fill in the blank 1aab96f86056074_10 |
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