Chapter 4: 4-17RQ (page 216)
If a business had a net loss for the year, what would be the closing entry to close Income Summary and transfer the net loss to the Retained Earnings account?
The following entry will be recorded:
Date | Accounts and Explanation | Debit | Credit |
Retained Earnings | XXX | ||
Income Summary | XXX |
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The unadjusted trial balance of Fleming Investment Advisers at December 31, 2018, follows: Adjustment data at December 31, 2018: a. Unearned Revenue earned during the year, \(700. b. Office Supplies on hand, \)3,000. c. Depreciation for the year, \(3,000. d. Accrued Salaries Expense, \)4,500. e. Accrued Service Revenue, \(9,000. Account Title Office Supplies Cash Debit Credit Accounts Receivable Equipment Accumulated Depreciation—Equipment Accounts Payable Salaries Payable Unearned Revenue Notes Payable (long-term) Common Stock Dividends Service Revenue Insurance Expense Salaries Expense Supplies Expense Interest Expense Rent Expense Depreciation Expense—Equipment Total Balance \) 25,000 \( 183,000 \) 183,000 26,000 4,500 15,000 Retained Earnings 5,500 28,000 99,000 51,000 7,500 26,000 $ 19,000 14,000 2,500 33,000 3,000 7,000 FLEMING INVESTMENT ADVISERS Unadjusted Trial Balance December 31, 2018 Requirements 1. Prepare a worksheet for Fleming Investment Advisers at December 31, 2018. 2. Prepare the income statement, the statement of retained earnings, and the classified balance sheet in account format. 3. Prepare closing entries.
A partial worksheet for Aaron Adjusters is presented below. Solve for the missing information. J K L M 33 34 35 \( 61,400 (g) (d) \) 22,400 (b) (e) (a) (f) Debit Credit Debit Credit Income Statement Balance Sheet Net (c) Total $ 61,400.
Benson Auto Repair has the following account balances at December 31, 2018, from its adjusted trial balance. Compute
Benson Auto Repair’s current ratio.
Cash \( 4,000 Common Stock \) 20,000
Accounts Receivable 3,200 Retained Earnings 15,700
Prepaid Rent 1,900 Dividends 2,100
Office Supplies 3,000 Service Revenue 1,600
Equipment 34,800 Depreciation Expense—Equipment 300
Accumulated Depreciation—Equipment 1,600 Salaries Expense 800
Accounts Payable 5,400 Rent Expense 500
Notes Payable (long-term) 7,000 Utilities Expense 600
Supplies Expense 100
For each account listed, identify the category in which it would appear on a classified balance sheet.
How could a worksheet help in preparing financial statements?
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