Question

1. Adjusting data of CAK Intermet at June 30, 2018: a. Unearned service revenues still unearned, $800. b. Prepaid rent still in force, $2,100. c. Supplies used during the month,$900. d. Depreciation for the month,$400. e. Accrued salary expense,$1,500. Requirements (1) Journalize adjusting journal entries. (5 Marks) (2) Completing the following worksheet. (5 Marks) (3) Prepare closing entries. (4 Marks) (4) Prepare income statement and balance sheet. (6 Marks) CAK INTERNET Worksheet June 30,2018 ADJUSTED TRIAL BALANCE DEBIT TRIAL BALANCE ADJUSTMENTS CREDIT CREDIT CREDIT DEBIT ACCOUNT TITLE Cash Accounts receivable Prepaid rent Supplies Equipment Accumulated depreciation Accounts payable Salary payable Unearned service revenue Retained earning Cak, capital Service revenue DEBIT $9,100 15,000 2,300 1,000 30,600 $3,800 6,400 9,800 4,000 20,000 17,000 3,000 Salary expense Rent expense Depreciation expense Supplies expense $61,000 $61,000

Answer 1

adjusting entries account titles and explanation no date debit credit a $ 9,000 30 June 2018 unearned service revenue service revenue (to record service revenue) $ 9,000 $ 200 30 June 2018 rent expense prepaid rent (to record rent expense) $ 200 $ 900 30 June 2018 supplies expense supplies (to record supplies expense) $ 900 $ 400 30 June 2018 depreciation expense accumulated depreciation (to record depreciation expense) $ 400 e $ 1,500 30 June 2018 salary expense salary payable (to record salary expense) $ 1,500

- account title cash accounts receivable prepaid rent supplies equipment accumulated depreciation accounts payable salary payable unearned service revenue retained earning Cak, Capital service revenue rent expense salary expense depreciation expense supplies expense CAK INTERNET worksheet june 30, 2018 trial balance adjustments debit credit debit credit $ 9,100 $ 15,000 $ 2,300 $ 200 $1,000 $ 900 $ 30,600 $ 3,800 $400 $6,400 $ 1,500 $ 9,800 $ 9,000 $4,000 $ 20,000 $ 17,000 S 9.000 $ 200 $3,000 $ 1,500 $ 400 $ 900 $ 61,000 $61,000 $12,000 $ 12,000 adjusted trial balance debit credit $9,100 $ 15,000 $ 2,100 $ 100 $ 30,600 $4,200 $ 6,400 $ 1,500 $ 800 $4,000 $ 20,000 $ 26,000 $ 200 $4,500 $ 400 $ 900 $ 62,900 $62,900

closing entries account titles and explanation no date debit credit $ 26,000 a 30 June 2018 service revenue income summary (to close revenue accounts) $ 26,000 $6,000 b 30 June 2018 income summary rent expense salary expense depreciation expense supplies expense (to close expense accounts) $ 200 $ 4,500 $ 400 $ 900 $ 20,000 30 June 2018 income summary retained earning (to close income summary) $ 20,000

$ 26,000 CAK INTERNET income statement for the month ended june 30, 2018 revenues service revenue expenses rent expense $ 200 salary expense $4,500 depreciation expense $ 400 supplies expense $ 900 total expenses net income $ 6,000 $ 20,000

$ 26,300 CAK INTERNET balance sheet at june 30, 2018 assets current assets cash $9,100 accounts receivable $ 15,000 prepaid rent $2,100 supplies $ 100 total current assets long term assets equipment $ 30,600 less: accumulated depreciation equipment, net total assets liabilities and owner's equity current liabilities accounts payable $6,400 salary payable $ 1,500 unearned service revenue $ 800 total current liabilities owner's equity Cak, Capital $ 20,000 retained earning $ 24,000 total owner's equity total liabilities and owner's equity $ 26,400 $ 52,700 $8,700 $ 44,000 $ 52,700