Chapter 5, Problem 4PA

The account balances of Bryan Company as of June 30, the end of the current fiscal year, are as follows:

Required

1. 1. Data for the adjustments are as follows:
   1. a. Expired or used up insurance, $495
   2. b. Depreciation expense on equipment, $670.
   3. c. Depreciation expense on the van, $1,190.
   4. d. Salary accrued (earned) since the last payday, $540 (owed and to be paid on the next payday).
   5. e. Supplies used during the period, $97.

Your instructor may want you to use a work sheet for these adjustments.

1. 2. Journalize the adjusting entries.
2. 3. Prepare an income statement.
3. 4. Prepare a statement of owner’s equity. Assume that there was an additional investment of $2,000 on June 10.
4. 5. Prepare a balance sheet.
5. 6. Journalize the closing entries using the four steps in the correct sequence.

Check Figure

Net Income, $13,627