23rd Edition

ISBN: 9781259536359

Author: John J Wild, Ken Shaw Accounting Professor, Barbara Chiappetta Fundamental Accounting Principles

Publisher: McGraw-Hill Education

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Textbook Question

Chapter 4, Problem 5APSA

Problem 4-5A

Preparing trial balances, closing entries, and financial statements

C3 P2 P3

The adjusted trial balance of Karise Repairs on December 31, 2017, follows.

Chapter 4, Problem 5APSA, Problem 4-5A Preparing trial balances, closing entries, and financial statements C3 P2 P3 The

Required

a. Prepare an income statement and a statement of owner’s equity for the year 2017, and a classified balance sheet at December 31, 2017.

There are no owner investments in 2017.

b. Enter the adjusted trial balance in the first two columns of a six-column table. Use columns three and four for closing entry information and

the last two columns for a post-closing trial balance. Insert an Income Summary account as the last item in the trial balance.

C. Enter closing entry information in the six- column table and prepare journal entries for it.

Check (1) Ending capital balance. $47.750 Net income. $30.750

(2) P-C trial balance totals. $67.350

Analysis Component

4. Assume for this part only that

a. None of the $8oo insurance expense had expired during the year. Instead, assume it is a prepayment of the next period’s insurance protection.

b. There are no earned and unpaid wages at the end of the year. (Hint: Reverse the $600 wages payable accrual.)

Describe the financial statement changes that would result from these two assumptions.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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Chapter 4, Problem 4APSA

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The comparative balance sheets and an income statement for Raceway Corporation follow. Balance Sheets As of December 31 Year 2 Year 1 Assets Cash $ 6,300 $ 48,400 Accounts receivable 10,200 7,260 Inventory 45,200 56,000 Prepaid rent 700 2,140 Equipment 140,000 144,000 Accumulated depreciation (73,400) (118,000) Land 116,000 50,000 Total assets $ 245,000 $ 189,800 Liabilities Accounts payable (inventory) $ 37,200 $ 40,000 Salaries payable 12,200 10,600 Stockholders’ equity Common stock, $50 par value 150,000 120,000 Retained earnings 45,600 19,200 Total liabilities and stockholders’ equity $ 245,000 $ 189,800 Income Statement For the Year Ended December 31, Year 2 Sales $ 480,000 Cost of goods sold (264,000) Gross profit 216,000 Operating expenses Depreciation expense (11,400) Rent expense (7,000) Salaries expense (95,200) Other operating expenses (76,000) Net income $ 26,400 Other Information Purchased…

Chapter 4 Solutions

Fundamental Accounting Principles

Ch. 4 - Prob. 1DQ Ch. 4 - Prob. 2DQ Ch. 4 - Prob. 3DQ Ch. 4 - Prob. 4DQ Ch. 4 - Prob. 5DQ Ch. 4 - Prob. 6DQ Ch. 4 - 7. Why are the debit and credit entries in the...Ch. 4 - Prob. 8DQ Ch. 4 - Prob. 9DQ Ch. 4 - Prob. 10DQ

Ch. 4 - Prob. 11DQ Ch. 4 - 12. How do reversing entries simplify...Ch. 4 - If a company recorded accrued salaries expense of...Ch. 4 - Prob. 14DQ Ch. 4 - Prob. 15DQ Ch. 4 - Prob. 16DQ Ch. 4 - Prob. 17DQ Ch. 4 - Prob. 1QS Ch. 4 - Prob. 2QS Ch. 4 - Prob. 3QS Ch. 4 - Prob. 4QS Ch. 4 - Prob. 5QS Ch. 4 - Prob. 6QS Ch. 4 - Prob. 7QS Ch. 4 - Prob. 8QS Ch. 4 - Prob. 9QS Ch. 4 - Prob. 10QS Ch. 4 - Prob. 11QS Ch. 4 - Prob. 12QS Ch. 4 - Exercise 4-1 Extending adjusted account balances...Ch. 4 - Prob. 2E Ch. 4 - Prob. 3E Ch. 4 - Exercise 4-4 Completing a work sheet Pl The...Ch. 4 - Exercise 4-5 Determining effects of closing...Ch. 4 - Prob. 6E Ch. 4 - Exercise 4-7 Preparing a work sheet and recording...Ch. 4 - Prob. 8E Ch. 4 - Prob. 9E Ch. 4 - Prob. 10E Ch. 4 - Prob. 11E Ch. 4 - Prob. 12E Ch. 4 - Exercise 4-13 Computing the current ratio A1 Use...Ch. 4 - Prob. 14E Ch. 4 - Prob. 15E Ch. 4 - Prob. 16E Ch. 4 - Prob. 17E Ch. 4 - Problem 4-1A Applying the accounting cycle C1 C2...Ch. 4 - Prob. 2APSA Ch. 4 - Prob. 3APSA Ch. 4 - Prob. 4APSA Ch. 4 - Problem 4-5A Preparing trial balances, closing...Ch. 4 - Prob. 6APSA Ch. 4 - Prob. 1BPSB Ch. 4 - Prob. 2BPSB Ch. 4 - Prob. 3BPSB Ch. 4 - Prob. 4BPSB Ch. 4 - Prob. 5BPSB Ch. 4 - Prob. 6BPSB Ch. 4 - Business Solutions P2 P3 (This serial problem...Ch. 4 - Prob. 1GLP Ch. 4 - Prob. 2GLP Ch. 4 - Prob. 3GLP Ch. 4 - Prob. 4GLP Ch. 4 - Prob. 5GLP Ch. 4 - Prob. 1BTN Ch. 4 - Prob. 2BTN Ch. 4 - Prob. 3BTN Ch. 4 - Prob. 4BTN Ch. 4 - Prob. 5BTN Ch. 4 - Prob. 6BTN Ch. 4 - Prob. 7BTN Ch. 4 - Prob. 8BTN Ch. 4 - Prob. 9BTN

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