Reference no: EM131778689

Questions -

Q1. Green Earth Co. is a consulting firm specializing in pollution control. The entries in the Adjustments columns of the work sheet for Green Earth Co. are as follows.

	Adjustments
	Dr.	Cr.
Accounts Receivable	4,100
Supplies		1,300
Prepaid Insurance		2,000
Accumulated Depreciation-Equipment		2,800
Wages Payable		1,000
Unearned Rent	2,500
Fees Earned		4,100
Wages Expense	1,000
Supplies Expense	1,300
Rent Revenue		2,500
Insurance Expense	2,000
Depreciation Expense	2,800

Prepare the adjusting journal entries.

Q2. From the following list, identify the accounts that should be closed to Income Sum-

From the following list, identify the accounts that should be closed to Income Summary at the end of the fiscal year:

a. Accounts Payable                                         g. Fees Earned

b. Accumulated Depreciation- Equipment            h. Land

c. Depreciation Expense-Equipment                    i. Salaries Expense

d. Doyle Bradford, Capital                                 j. Salaries Payable

e. Doyle Bradford, Drawing                               k. Supplies

f. Equipment                                                    l. Supplies Expense

Q3. Which of the following accounts will usually appear in the post-closing trial balance:

a. Accounts Receivable

b. Accumulated Depreciation

c. Cash

d. Depreciation Expense

e. Equipment

f. Estella Hall, Capital

g. Estella Hall, Drawing

h. Fees Earned

i. Supplies

j. Wages Expense

k. Wages Payable

Q4. The trial balance of Dynamite Laundry at July 31, 2006, the end of the current fiscal year, and the data needed to determine year-end adjustments are as follows:

Dynamite Laundry Trial Balance July 31, 2006
Cash	2,900
Laundry Supplies	7,500
Prepaid Insurance	4,800
Laundry Equipment	109,050
Accumulated Depreciation		41,100
Accounts Payable		6,100
David Duffy, Capital		37,800
David Duffy, Drawing	2,000
Laundry Revenue		165,000
Wages Expense	71,400
Rent Expense	36,000
Utilities Expense	13,650
Miscellaneous Expense	2,700
	250,000	250,000

a. Wages accrued but not paid at July 31 are $1,200.

b. Depreciation of equipment during the year is $6,800.

c. Laundry supplies on hand at July 31 are $1,750.

d. Insurance premiums expired during the year are $2,400.

Instructions -

1. Enter the trial balance on a ten-column work sheet and complete the work sheet. Add accounts as needed.

2. Prepare an income statement, a statement of owner's equity (no additional investments were made during the year), and a balance sheet.

3. On the basis of the adjustment data in the work sheet, journalize the adjusting entries.

4. On the basis of the data in the work sheet, journalize the closing entries.