Question

4A-6. (Similar to problem 4A-5) Below is the adjusted trial balance for JUPITER Incorporated: JUPITER INCORPORATED Adjusted Trial Balance September 1, 20x1 Credit Balances Debit Balances $7,000 $13,300 $3,600 $22.900 | I Account Names Cash Accounts receivable Office supplies Equipment Accumulated depreciation - equipment Salaries payable Interest payable Unearned rent revenue Common stock Retained earnings Rent revenue Supplies expense Salary expense Interest expense Depreciation expense - equipment Totals $3,300 $12,300 $6.600 $8,300 $3,300 17,900 $6,900 $2,600 $4,100 $3,400 $1,700 $58,600 $58,600 Required: 1. Show the journal entries necessary to record the closing entries. Designate each entry by letter. 2. Open the 15 ledger accounts listed on the adjusted trial balance in T- account format, showing the beginning account balances as given. Post the closing entries in requirement 1 to these accounts using the associated letter to mark each entry. When you have finished, calculate the balances for each account. 3. Prepare the post closing trial balance for JUPITER Incorporated as of September 1, 20x1. 4. Prepare the income statement, balance sheet, and statement of changes in retained earnings for JUPITER.

Answer 1

Answer to Question 1:

Requirement 1 Post Date Accounts Ref. Debit Credit 01-Sep Rent Revenue A $ 6,900 Income Summary $ 6,900 (To close all income statement accounts with credit balances to income summary) 01-Sep Income Summary $ 11,800 Supplies expense $ 2,600 Salary expense B $ 4,100 Interest expense $ 3,400 Depreciation expense - equipment $ 1,700 (To close all income statement accounts with debit balances to income summary) $ 4,900 01-Sep Retained Earnings C Income Summary (6,900 - 11,800) (To close the income summary account) $ 4,900

Answer to Question 2:

Requirement 2 Adjusted Bal. $ $ Cash 7,000 Closing Bal. 7,000 $ $ 7,000 7,000 Adjusted Bal. $ $ Account Receivable 11,300 Closing Bal. 11,300 $ $ 11,300 11,300 Adjusted Bal. $ Office Supplies 3,600 Closing Bal. 3,600 $ $ 3,600 3,600 Adjusted Bal. $ $ Equipment 22,900 Closing Bal. 22,900 $ $ 22,900 22,900 Closing Bal. Accumulated depreciation - equipment $ 3,300 Adjusted Bal. $ $ 3,300 $ 3,300 3,300 Closing Bal. $ Salaries Payable 12,300 Adjusted Bal. 12,300 $ $ 12,300 12,300

Answer to Question 2:

Closing Bal. Interest Payable 6,600 Adjusted Bal. 6,600 $ 6,600 6,600 Closing Bal. $ $ Unearned Rent Revenue 8,300 Adjusted Bal. 8,300 $ $ 8,300 8,300 Closing Bal. $ Common Stock 3,300 Adjusted Bal. 3,300 $ 3,300 3.300 $ Rent Revenue 6,900 Adjusted Bal. 6,900 $ $ 6,900 6,900 $ Adjusted Bal. $ Supplies Expense 2,600 2,600 $ 2,600 2,600 Adjusted Bal. Salary Expense 4,100B 4,100 $ $ $ 4,100 4,100

Answer to Question 2:

Adjusted Bal. Interest Expense 3,400 B 3,400 $ $ $ 3,400 3,400 2. $ 00 t 5 Adjusted Bal. Depreciation expense - equipment $ 1,700 B $ $ $ 1,700 $ 1,700 1,700 5 Retained Earnings 4,900 Adjusted Bal. m $ $ 17,900 Closing Balance $ 13,000 6,900 Income Summary 2,600 A 4,100 3,400 1,700 4,900 11,800 11,800

Answer to Question 3:

Jupiter Incorporated Post Closing Trial Balance September 1, 20XX Accounts Titles Debit Credit Cash $ 7,000 Accounts Receivable $ 13,300 Office Supplies $ 3,600 Equipment $ 22,900 Accumulated Depreciation - Equipment $ 3,300 Salaries Payable $ 12,300 Interest Payable IS 6,600 Unearned Rent Revenue $ 8,300 Common Stock $ 3,300 Retained Earnings $ 13,000 Totals $ 46,800 $ 46,800

Answer to Question 4:

6,900 Jupiter Incorporated Income Statement For the year ended 1 September, 20XX Revenues: Rent Revenue $ Expenses: Supplies expense $ 2,600 Salary expense $ 4,100 Interest expense $ 3,400 Depreciation expense - equipment $ 1,700 Total expense $ Net Loss $ 11,800 (4,900) (6,900 - 11,800) Jupiter Incorporated Statement of Changes in Retained Earnings For the year ended 1 September, 20XX Opening Balance $ 17,900 Less: Net Loss $ (4,900) Closing Balance $ 13,000

Answer to Question 4:

Jupiter Incorporated Balance Sheet As on 1 September, 20XX Amounts Current Assets Cash Accounts receivables Supplies Total Current Assets $ $ $ $ 7,000 13,300 3,600 23,900 $ 22,900 Property, plant and Equipment Equipment Less: Accumulated depreciation - equipment Total Property, plant and Equipment Total Assets Is (3,300) 19,600 43,500 (23,900 + 43,500)

Liabilities and Stockholders' Equity Liabilities Salaries payable Interest payable Unearned rent revenue Total liabilities $ 12,300 6,600 8,300 27,200 $ Shareholders Equity Common stock Retained earnings Total shareholders equity Total liabilities and stockholders' $ $ $ 3,300 13,000 16,300 43,500 (27,200 + 16,300)