Prob. 4–4A
1., 3., and 6.
Cash
Account:
Balance
Post.
Date
2014
Mar.
Item
31
Balance
Ref.
Debit
Credit
Debit
2014
Mar.
Item
31
31
Balance
Adjusting
Ref.
Balance
Debit
9
26
Credit
22,500
Prepaid Insurance
Account:
Debit
2014
Mar.
Item
31
31
Balance
Adjusting
Balance
Ref.
Debit
9
26
Credit
1,800
Debit
2014
Mar.
Item
31
Balance
Ref.
Balance
Debit
Credit
Debit
2014
Mar.
Item
31
31
Balance
Adjusting
Ref.
Balance
Debit
9
26
Credit
Debit
2014
Mar.
8,350
18
Account No.
Item
31
Credit
25,000
33,350
Post.
Date
17
Account No.
Trucks
Account:
Credit
110,000
9
Post.
Date
16
Account No.
Accumulated Depreciation—Equipment
Account:
Credit
3,600
1,800
Post.
Date
14
Account No.
Equipment
Account:
Credit
30,000
7,500
Post.
Date
13
Account No.
Post.
Date
Credit
12,000
9
Supplies
Account:
11
Account No.
Balance
Ref.
Balance
Debit
Credit
Debit
Credit
60,000
9
4-14
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Prob. 4–4A (Continued)
Accumulated Depreciation—Trucks
Account:
Balance
Post.
Date
2014
Mar.
Item
31
31
Ref.
Balance
Adjusting
Debit
9
26
Credit
Debit
15,000
21,200
2014
Mar.
Item
31
Balance
Ref.
Balance
Debit
Credit
Debit
4,000
2014
Mar.
Item
31
Ref.
Adjusting
Balance
Debit
26
Credit
Debit
600
2014
Mar.
Item
31
31
31
Balance
Closing
Closing
Ref.
9
27
27
Balance
Debit
Credit
Debit
96,000
147,150
132,150
15,000
2014
Mar.
Item
31
31
Balance
Closing
Ref.
32
Account No.
Post.
Date
Credit
51,150
Kaya Tarango, Drawing
Account:
31
Account No.
Post.
Date
Credit
600
Kaya Tarango, Capital
Account:
22
Account No.
Post.
Date
Credit
9
Wages Payable
Account:
21
Account No.
Post.
Date
Credit
6,200
Accounts Payable
Account:
19
Account No.
Balance
Debit
9
27
Credit
15,000
Debit
15,000
—
Credit
—
4-15
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Prob. 4–4A (Continued)
Income Summary
Account:
Post.
Item
Date
2014
Mar.
31
31
31
Closing
Closing
Closing
Ref.
27
27
27
Balance
Debit
Credit
Debit
108,850
51,150
2014
Mar.
Item
31
31
Balance
Closing
Ref.
9
27
Balance
Debit
Credit
160,000
Debit
2014
Mar.
Item
31
31
31
Balance
Adjusting
Closing
2014
Mar.
Item
31
31
Adjusting
Closing
Ref.
Debit
9
26
27
Credit
600
45,600
Debit
45,000
45,600
—
Ref.
2014
Mar.
Item
31
31
Balance
Closing
—
52
26
27
Balance
Debit
Credit
22,500
22,500
Debit
Credit
22,500
—
—
53
Account No.
Post.
Date
Credit
Account No.
Rent Expense
Account:
51
Balance
Post.
Date
160,000
—
Account No.
Supplies Expense
Account:
Credit
—
Post.
Date
41
Account No.
Wages Expense
Account:
160,000
51,150
—
—
Post.
Date
Credit
160,000
Service Revenue
Account:
33
Account No.
Ref.
Balance
Debit
9
27
Credit
10,600
Debit
10,600
—
Credit
—
4-16
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Prob. 4–4A (Continued)
Truck Expense
Account:
Post.
Item
Date
2014
Mar.
31
31
Balance
Closing
Balance
Ref.
Debit
9
27
Credit
9,000
Depreciation Expense—Equipment
Account:
Debit
Item
2014
Mar.
31
31
Adjusting
Closing
2014
Mar.
Item
Ref.
Debit
26
27
31
31
Adjusting
Closing
Ref.
26
27
Credit
8,350
8,350
Debit
8,350
—
2014
Mar.
Item
31
31
Adjusting
Closing
Credit
6,200
6,200
Debit
2014
Mar.
Item
31
31
Balance
Closing
Credit
6,200
—
—
57
Ref.
26
27
Balance
Debit
Credit
1,800
1,800
Debit
Ref.
Credit
1,800
—
—
59
Account No.
Balance
Post.
Date
56
Account No.
Miscellaneous Expense
Account:
—
Balance
Debit
Post.
Date
Credit
Account No.
Insurance Expense
Account:
55
Balance
Post.
Date
—
Account No.
Depreciation Expense—Trucks
Account:
Credit
9,000
—
Post.
Date
54
Account No.
Debit
9
27
Credit
4,800
Debit
4,800
—
Credit
—
4-17
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Net income
12,000
30,000
3,600
110,000
300,000
160,000
96,000
15,000
4,000
25,000
Credit
(c)
(d)
(b)
(e)
(a)
39,450
8,350
6,200
1,800
600
22,500
Debit
600
(e)
4-18
39,450
6,200
8,350
22,500
1,800
(d)
(c)
(a)
(b)
Credit
Adjustments
45,600
22,500
10,600
9,000
8,350
6,200
1,800
4,800
315,150
15,000
60,000
12,000
7,500
1,800
110,000
Debit
315,150
160,000
21,200
4,000
600
96,000
33,350
Credit
Adjusted
Trial Balance
LAKOTA FREIGHT CO.
End-of-Period Spreadsheet (Work Sheet)
For the Year Ended March 31, 2014
45,600
22,500
10,600
9,000
8,350
6,200
1,800
4,800
108,850
51,150
160,000
Debit
160,000
160,000
160,000
Credit
Income
Statement
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
4,800
300,000
10,600
9,000
45,000
15,000
60,000
Debit
Unadjusted
Trial Balance
Cash
Supplies
Prepaid Insurance
Equipment
Accum. Depr.—Equip.
Trucks
Accum. Depr.—Trucks
Accounts Payable
Wages Payable
Kaya Tarango, Capital
Kaya Tarango, Drawing
Service Revenue
Wages Expense
Supplies Expense
Rent Expense
Truck Expense
Depr. Exp.—Equipment
Depr. Exp.—Trucks
Insurance Expense
Miscellaneous Expense
Optional (Appendix)
Account Title
2.
Prob. 4–4A (Continued)
206,300
206,300
15,000
60,000
12,000
7,500
1,800
110,000
Debit
155,150
51,150
206,300
21,200
4,000
600
96,000
33,350
Credit
Balance
Sheet
Prob. 4–4A (Continued)
3.
JOURNAL
Post.
Ref.
Date
2014
Mar.
Page
Adjusting Entries
31 Supplies Expense
Supplies
Supplies used ($30,000 – $7,500).
Debit
52
13
22,500
31 Insurance Expense
Prepaid Insurance
Insurance expired.
57
14
1,800
31 Depreciation Expense—Equipment
Accumulated Depr.—Equipment
Equipment depreciation.
55
17
8,350
31 Depreciation Expense—Trucks
Accumulated Depr.—Trucks
Truck depreciation.
56
19
6,200
31 Wages Expense
Wages Payable
Accrued wages.
51
22
600
26
Credit
22,500
1,800
8,350
6,200
600
4-19
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Prob. 4–4A (Continued)
4.
LAKOTA FREIGHT CO.
Adjusted Trial Balance
March 31, 2014
Cash
Supplies
Prepaid Insurance
Equipment
Accumulated Depreciation—Equipment
Trucks
Accumulated Depreciation—Trucks
Accounts Payable
Wages Payable
Kaya Tarango, Capital
Kaya Tarango, Drawing
Service Revenue
Wages Expense
Supplies Expense
Rent Expense
Truck Expense
Depreciation Expense—Equipment
Depreciation Expense—Trucks
Insurance Expense
Miscellaneous Expense
Debit
Credit
Balances
Balances
12,000
7,500
1,800
110,000
33,350
60,000
21,200
4,000
600
96,000
15,000
160,000
45,600
22,500
10,600
9,000
8,350
6,200
1,800
4,800
315,150
315,150
4-20
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Prob. 4–4A (Continued)
5.
LAKOTA FREIGHT CO.
Income Statement
For the Year Ended March 31, 2014
Service revenue
Expenses:
Wages expense
Supplies expense
Rent expense
Truck expense
Depreciation expense—equipment
Depreciation expense—trucks
Insurance expense
Miscellaneous expense
Total expenses
Net income
LAKOTA FREIGHT CO.
Statement of Owner’s Equity
For the Year Ended March 31, 2014
Kaya Tarango, capital, April 1, 2013
Net income for the year
Less withdrawals
Increase in owner’s equity
Kaya Tarango, capital, March 31, 2014
$160,000
$45,600
22,500
10,600
9,000
8,350
6,200
1,800
4,800
108,850
$ 51,150
$ 96,000
$51,150
15,000
36,150
$132,150
4-21
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
$110,000
33,350
$ 60,000
21,200
Assets
38,800
$76,650
$12,000
7,500
1,800
4-22
115,450
$136,750
$ 21,300
Liabilities
Total liabilities and owner’s
equity
Kaya Tarango, capital
Owner’s Equity
Current liabilities:
Accounts payable
Wages payable
Total liabilities
LAKOTA FREIGHT CO.
Balance Sheet
March 31, 2014
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Current assets:
Cash
Supplies
Prepaid insurance
Total current assets
Property, plant, and equipment:
Equipment
Less accum. depreciation
Trucks
Less accum. depreciation
Total property, plant, and
equipment
Total assets
Prob. 4–4A (Continued)
$4,000
600
4,600
$136,750
132,150
$
Prob. 4–4A (Concluded)
JOURNAL
6.
Post.
Ref.
Date
2014
Mar.
7.
Page
Debit
Closing Entries
31 Service Revenue
Income Summary
41
33
160,000
31 Income Summary
Wages Expense
Supplies Expense
Rent Expense
Truck Expense
Depreciation Expense—Equipment
Depreciation Expense—Trucks
Insurance Expense
Miscellaneous Expense
33
51
52
53
54
55
56
57
59
108,850
31 Income Summary
Kaya Tarango, Capital
33
31
51,150
31 Kaya Tarango, Capital
Kaya Tarango, Drawing
31
32
15,000
27
Credit
160,000
45,600
22,500
10,600
9,000
8,350
6,200
1,800
4,800
51,150
15,000
LAKOTA FREIGHT CO.
Post-Closing Trial Balance
March 31, 2014
Cash
Supplies
Prepaid Insurance
Equipment
Accumulated Depreciation—Equipment
Trucks
Accumulated Depreciation—Trucks
Accounts Payable
Wages Payable
Kaya Tarango, Capital
Debit
Credit
Balances
Balances
12,000
7,500
1,800
110,000
33,350
60,000
191,300
21,200
4,000
600
132,150
191,300
4-23
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