Question

A partially completed worksheet for At Home Pet Grooming Service, a firm that grooms pets at the owner’s home, follows.

Required:

1. Complete the worksheet.
2. Record the adjusting entries in the general journal (transactions 1-3).
3. Record the closing entries in the general journal (transactions 4-7).
4. Post the adjusting entries and the closing entries to the general ledger accounts. Hint: Be sure to enter beginning balances.
5. Prepare a post-closing trial balance.

Analyze:
What total debits were posted to the general ledger to complete all closing entries for the month of December?

Adjustments Debit Credit Adjusted Trial Balance Debit Credit Income Statement Debit Credit Balance Sheet Debit Credit Trial Balance Debit Credit $ 31,550 5,200 5,000 3,500 20,500 1,850 1,650 530 5,500 40,500 Account Name Cash Accounts receivable Supplies Prepaid advertising Equipment Accumulated depreciation Equipment Accounts payable Shara Johns, Capital Shara Johns, Drawing Fees income Salaries expense Utilities expense Supplies expense Advertising expense Depreciation expense-Equipment Totals Net income 2,500 28,300 5,300 750 1,850 1,650 530 4,030 $ 74,300 $ 74,300 $ $ 4,030 $ 0 $ 0 $ 0 $ 0 $ 0 $ $ 0 % 0 % 0 % 0

Answer 1

Adjustments Debit Credit Income Statement Debit Credit Trail balance Debit Credit 31,550 5,200 5,000 3,500 20,500 1,850 1,650 Reg 1 At Home Pet Grooming Service Accounts Cash Accounts receivable Supplies Prepaid Advertising Equipment Accumulated Dep - Equipment Accounts Payable Shara Johns, Capital Shara Johns, Drawings Fees income Salaries expense Utilities expense Supplies expense Advertising expense Depreciation expense Totals Net income Totals Adjusted Trail balance Debit Credit 31,550 5,200 3,150 1,850 20,500 530 5,500 40,500 Balance Sheet Debit Credit 31,550 5,200 3,150 1,850 20,500 530 5,500 40,500 2,500 530 5,500 40,500 2,500 2,500 28,300 28,300 28,300 5,300 750 1,850 1,650 530 4,030 5,300 750 1,850 1,650 530 74,830 5,300 750 1,850 1,650 530 10,080 18,220 28,300 74,300 74,300 4,030 74,830 28,300 64,750 46,530 18,220 64,750 28,300 64,750

Debit Credit At Home Pet Grooming Service Date General Journal Req2 Adjusting entries 1 31-Dec Supplies expense Supplies (To record supplies expense) 1,850 1,850 1,650 2 31-Dec Advertising expense Prepaid Advertising (To record advertising expense) 1,650 530 530 3 31-Dec Depreciaiton expense Accumulated Dep - Equipment (To record depreciation expense) Req3 Closing entries 4 31-Dec Fees income Income Summary (To close revenues) 28,300 28,300 10,080 5 31-Dec Income Summary Salaries expense Utilities expense Supplies expense Advertising expense Depreciaiton expense (To close expenses) 5,300 750 1,850 1,650 530 18,220 6 31-Dec Income Summary Shara Johns, Capital (To close income summary) 18,220 2,500 7 31-Dec Shara Johns, Capital Shara Johns, Drawings (To close drawings) 2,500 Total debits posted to General ledger to complete all closing entries for Dec? Answer Sum of debits of 4 closing entries above 59,100 =28,300+10,080+18,220+2,500

Req4 T Accounts Date Debit Balance Balance Credit Cash 31-Dec $ 31,550 $ 31,550 Date Debit Credit Balance Accounts receivable 31-Dec $ 5,200 $ 5,200 Accumulated Dep - Equipment 31-Dec $ - 31-Dec $ 530 $ 530 Date Debit Credit Supplies 31-Dec 31-Dec $ 1,850 Accounts Payable 31-Dec $ 5,000 $ 3,150 Equipment 31-Dec $ 20,500 $ 20,500 $ 5,500 $ 5,500 Date Debit Credit Balance Prepaid Advertising 31-Dec $ 3,500 31-Dec $ 1,650 $ 1,850 Shara Johns, Capital 31-Dec $ 40,500 31-Dec $ 18,220 $ 58,720 31-Dec $ 2,500 $56,220 Salaries expense 31-Dec $ 5,300 31-Dec $ 5,300 $ - $ . Advertising expense 31-Dec $- 31-Dec $ 1,650 $ 1,650 31-Dec $ 1,650 $ - $ 28,300 $ 18,220 $ - Fee income 31-Dec 31-Dec $ 28,300 $ 28,300 $ . $ . Shara Johns, Drawings 31-Dec $ 2,500 31-Dec $ 2,500 $ $ - Utilities expense 31-Dec $ 750 31-Dec $ 750 $ - 31-Dec $ - Income Summary 31-Dec $ 28,300 31-Dec $ 10,080 31-Dec $ 18,220 Supplies expense 31-Dec 31-Dec $ 1,850 31-Dec $ 1,850 $ - $ 1,850 $ . Depreciation expense 31-Dec $ 31-Dec $ 530 $ 31-Dec $ 530 $ - 530 -

Req1 At Home Pet Grooming Service Accounts Cash Accounts receivable Supplies Prepaid Advertising Equipment Accumulated Dep - Equipment Accounts Payable Shara Johns, Capital Shara Johns, Drawings Fees income Salaries expense Utilities expense Supplies expense Advertising expense Depreciation expense Totals Req5 Post Closing Trail balance Debit Credit 31,550 5,200 3,150 1,850 20,500 530 5,500 56,220 62,250 62,250