Brief exercise 4-6 the income statement for weeping willow golf club

Post the entries to the revenue and expense accounts, and complete the closing process for these accounts using the three-column form of account.

1.

A collection on account from a customer for $870 was recorded as a debit to Cash $870 and a credit to Service Revenue $870.

2.

The purchase of store supplies on account for $1,570 was recorded as a debit to Supplies $1,750 and a credit to Accounts Payable $1,750.

No.

Account Titles and Explanation

Debit

Credit

1.

2.

Accounts

Balance Sheet Classification

Accounts Payable

Accounts receivable

Accumulated depreciation—buildings

Buildings

Cash

Copyrights

Income taxes payable

Debt investments (long-term)

Land

Inventory

Patents

Supplies

Exercise 4-7

Kay Magill Company had the following adjusted trial balance.

Condition gt requires numbers instead of “null” and “0”

Prepare closing entries at June 30, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Condition gt requires numbers instead of “null” and “0”

Prepare a post-closing trial balance.

Exercise 4-8

Plevin Company ended its fiscal year on July 31, 2014. The company’s adjusted trial balance as of the end of its fiscal year is as shown below.

Condition gt requires numbers instead of “null” and “0”

Prepare the closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Condition gt requires numbers instead of “null” and “0”

Post to Owner’s Capital and Income Summary accounts. (Post entries in the order of journal entries presented in the previous part.)

J15

Income Summary

No. 350

Date

Explanation

Ref

Debit

Credit

Balance

July 31

Condition gt requires numbers instead of “null” and “0”

Prepare a post-closing trial balance at July 31.

Exercise 4-10

Condition gt requires numbers instead of “null” and “0”

Janis Engle has prepared the following list of statements about the accounting cycle.

Identify each statement as true or false.

2.

Reversing entries are a required step in the accounting cycle.

3.

Correcting entries do not have to be part of the accounting cycle.

4.

If a worksheet is prepared, some steps of the accounting cycle are incorporated into the worksheet.

5.

The accounting cycle begins with the analysis of business transactions and ends with the preparation of a post-closing trial balance.

6.

All steps of the accounting cycle occur daily during the accounting period.

7.

The step of “post to the ledger accounts” occurs before the step of “journalize the transactions.”

8.

Closing entries must be prepared before financial statements can be prepared.