Case
These financial statement items (in thousands) are for Chen Company at year-end, July 31, 2014.
Salaries and wages payable ¥ 4,580 Note payable (Non-Current) ¥3,300
Salaries and wages expense 45,700 Cash 22,200
Utilities expense 19,100 Accounts receivable 9,780
Equipment 24,000 Accumulated depreciation-equip. 6,000
Accounts payable 4,100 Dividends 4,000
Service revenue 58,100 Depreciation expense 4,000
Rent revenue 6,500 Retained earnings (8/1/2013) 30,000
Share capital-ordinary 16,200
Instructions
(a) Prepare an income statement and a retained earnings statement for the year.
(b) Prepare a classified statement of financial position at July 31, 2014.
Case
Vanguard Company had the following adjusted trial balance at December 31, 2014.
VANGUARD COMPANY
Adjusted Trial Balance
For the Year Ended December 31, 2014
|
Account Titles
|
Debits
|
Credits
|
|
Cash
|
£ 12,800
|
|
|
Accounts Receivable
|
8,800
|
|
|
Equipment
|
15,900
|
|
|
Accounts Payable
|
|
£ 4,400
|
|
Accumulated Depreciation-Equip.
|
|
7,400
|
|
Share Capital - Ordinary
|
|
17,000
|
|
Retained Earnings
|
|
25,500
|
|
Dividends
|
16,000
|
|
|
Service Revenue
|
|
68,000
|
|
Unearned Rent Revenue
|
|
1,800
|
|
Rent Revenue
|
|
6,500
|
|
Salaries and Wages Expense
|
55,700
|
|
|
Depreciation Expense
|
6,000
|
|
|
Supplies Expense
|
200
|
|
|
Utilities Expense
|
14,900
|
|
|
|
£130,300
|
£130,300
|
Instructions:
(a) Journalize the entries required to close the accounts.
(b) Prepare a retained earnings statement for the year ended December 31, 2014.
Case 5
Presented below is an adjusted trial balance for Cowell Company, at December 31, 2014.
Cash €10,700 Accounts payable €10,000
Accounts receivable 20,000 Notes payable 9,000
Prepaid insurance 15,000 Accumulated depreciation-
Equipment 35,000 equipment 14,000
Depreciation expense 7,000 Service revenue 30,000
Dividends 1,500 Retained earnings 12,000
Advertising expense 1,400 Unearned service revenue 11,000
Rent expense 800 Share capital-ordinary 12,000
Salaries and wages expense 5,000
Insurance expense 1,600
€98,000 €98,000
Instructions
(a) Prepare closing entries for December 31, 2014.
(b) Determine the balance in the retained earnings account after the entries have been posted.