ACC 557 Week 3 WileyPlus (E4-1, E4-13, P4-3A and P4-4A) – ANSWER KEY

Exercise 4-1

The trial balance columns of the worksheet for Cajon Company at June 30, 2014, are as follows.

CAJON COMPANY
Worksheet
For the Month Ended June 30, 2014

Trial Balance

Account Titles

Dr.

Cr.

Cash

$4,226

Accounts Receivable

2,540

Supplies

1,899

Accounts Payable

$1,034

Unearned Service Revenue

419

Common Stock

4,991

Service Revenue

3,293

Salaries and Wages Expense

796

Miscellaneous Expense

236

$9,737

$9,737


Other data:

1.

A physical count reveals $464 of supplies on hand.

2.

$123 of the unearned revenue is still unearned at month-end.

3.

Accrued salaries are $125.

Exercise 4-13

Kogan Company has an inexperienced accountant. During the first 2 weeks on the job, the accountant made the following errors in journalizing transactions. All entries were posted as made.

1. A payment on account of $730 to a creditor was debited to Accounts Payable $370 and credited to Cash $370.

2. The purchase of supplies on account for $910 was debited to Equipment $91 and credited to Accounts Payable $91.

3. A $789 cash dividend was debited to Salaries and Wages Expense $789 and credited to Cash $789.

Problem 4-3A (Part Level Submission)


The completed financial statement columns of the worksheet for Hubbs Company are shown below.

Hubbs Company Worksheet
For the Year Ended December 31, 2014
Income Statement Balance Sheet

Account
No.              Account Titles Dr. Cr. Dr. Cr.

101  Cash 6,686
112 Accounts Receivable 7,286
130 Prepaid Insurance 1,619
157 Equipment 32,863
167 Accumulated Depreciation—Equip. 9,928
201 Accounts Payable 11,582
212 Salaries and Wages Payable 3,357
311 Common Stock 20,718
320 Retained Earnings 10,600
332 Dividends 3,599
400 Service Revenue 43,367
622 Maintenance and Repairs Expense 3,872
711 Depreciation Expense 2,744
722 Insurance Expense 1,473
726 Salaries and Wages Expense 35,194
732 Utilities Expense 4,216
Totals 47,499 43,367 52,053 56,185
Net Loss 4,132 4,132
47,499 47,499 56,185 56,185

Instructions
(a) Prepare an income statement, a retained earnings statement, and a classified balance sheet. No additional common stock was issued during 2014.
(b) Prepare the closing entries.
(c) Post the closing entries and rule and balance the accounts. Use T accounts. Income Summary is account No. 350.
(d) Prepare a post-closing trial balance.

Problem 4-4A (Part Level Submission)

Excelsior Amusement Park has a fiscal year ending on September 30. Selected data from the September 30 worksheet are presented below.

Here’s the SOLUTION

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