Question

EXERCISES E4-1 Jrhe trial balance of Orkin Pest Control Service follows. ORKIN PEST CONTROL SERVICE TRIAL BALANCE SEPTEMBER 30, 1986 Cash... S 3.560 3,440 1.200 3.390 12,600 $ 2.840 1.600 16,030 Accounts receivable. Prepaid rent........ Supplies .................. Equipment............... Accumulated depreciation ..... Accounts pavable..... Salary pavable...... Bobby Oricin, capital........ Bobby Orkin, withdrawals ........ Service revenue ........... Depreciation expense......... Salary expense..... Rent expense ......... Utilities expense...... Supplies expense. Total. 3.000 9,300 1.800 780 $29.770 $29,770 Additional information at September 30, 19X6: a. Accrued service revenue, S210. b. Depreciation. S40. c. Accrued salary expense, S500. d. Prepaid rent expired, S600. e. Supplies used, $1.650. Required Complete Orkin's work sheet for September 19X6. CHAPTER 4 COM!

Answer 1

Requirement E4-1: Prepare the work sheet as follows

OPC Service
Work Sheet
For the Year Ended September 30, 19X6
Account Title	Unadjusted Trial Balance		Adjustments				Adjusted Trial Balance		Income Statement		Balance Sheet
	Debit	Credit		Debit		Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$3,560						$3,560				$3,560
Accounts Receivable	$3,440		a	$210			$3,650				$3,650
Prepaid Rent	$1,200				d	$600	$600				$600
Supplies	$3,390				e	$1,650	$1,740				$1,740
Equipment	$12,600						$12,600				$12,600
Accumulated Depreciation-Equipment		$2,840			b	$40		$2,880				$2,880
Accounts Payable		$1,600						$1,600				$1,600
Salaries Payable		$0			c	$500		$500				$500
Capital		$16,030						$16,030				$16,030
Withdrawals	$3,000						$3,000				$3,000
Service Revenue		$9,300			a	$210		$9,510		$9,510
Salaries Expense	$1,800		c	$500			$2,300		$2,300
Rent Expense			d	$600			$600		$600
Depreciation Expense - Equipment			b	$40			$40		$40
Utilities Expense	$780						$780		$780
Supplies Expense			e	$1,650			$1,650		$1,650
Total	$29,770	$29,770		$3,000		$3,000	$30,520	$30,520	$5,370	$9,510	$25,150	$21,010
Net income									$4,140			$4,140
Totals									$9,510	$9,510	$25,150	$25,150

Requirement E4-2: Prepare the following adjusting journal entries

Date	Account Title and Explanation	Debit	Credit
Adj. a	Accounts Receivable	$210
	Service Revenue		$210
	To record adjustment for revenue earned
Adj. b	Depreciation Expense	$40
	Accumulated Depreciation - Equipment		$40
	To record adjustment for depreciation expense
Adj. c	Salaries Expense	$500
	Salaries Payable		$500
	To record adjustment for salaries expense
Adj. d	Rent Expense	$600
	Prepaid Rent		$600
	To record adjustment for rent expense
Adj. e	Supplies Expense	$1,650
	Supplies		$1,650
	To record adjustment for Supplies expense

Prepare the following closing entries

Date	Account Title and Explanation	Debit	Credit
Sept. 30	Service Revenue	$9,510
	Income Summary		$9,510
	To close revenue accounts to income summary
Sept. 30	Income Summary	$5,370
	Salaries Expense		$2,300
	Rent Expense		$600
	Depreciation Expense - Equipment		$40
	Utilities Expense		$780
	Supplies Expense		$1,650
	To close expense accounts to income summary
Sept. 30	Income summary	$4,140
	Capital		$4,140
	To close income summary
Sept. 30	Capital	$3,000
	Withdrawals		$3,000
	To close withdrawals to capital

Requirement E4-3: Prepare the following t-accounts

Clos. Service Revenue $9.510 $9.300 Sept. 30 Sept. 30 $210 Adj. a Adj. a SO End. Bal End. Bal Accounts Receivable $3,440 $210 $3,650 D . Depreciation Expense $0 $40 $40 Sept. 30 Adj. b End. Bal Clos. Accumulated Depreciation $2,840 Sept. 30 $40 Adj.b $2.880 End. Bal $0 Salaries Expense $1,800 $2,300 $500 Sept. 30 Adj.c End. Bal Clos. Salaries Payable SO Sept. 30 $500 Adj.c $500 End. Bal Sept. 30 Adj. d End. Bal Rent Expense $0 $600 $600 Clos. Sept. 30 Adj. d End. Bal Prepaid Rent $1,200 $600 $600 Clos. Sept. 30 Adj. e End. Bal Supplies Expense $0 $1,650 $1.650 SO Supplies $3,390 $1,650 $1,740 Adj. e End. Bal Withdrawals $3,000 $3.000 Sept. 30 Clos. Clos. Capital $3,000 $16,030 Sept. 30 $4.140 Clos. $17.170 End. Bal End. Bal $0 Income Summary $5,370 $9,510 $4.140 $0 Clos. Clos. Clos. End. Bal

Requirement E4-4: Prepare the following post closing trial balance

OPC Service
Post closing Trial Balance
September 30, 19X6
Account Title	Debit	Credit
Cash	$3,560
Accounts Receivable	$3,650
Prepaid Rent	$600
Supplies	$1,740
Equipment	$12,600
Accumulated Depreciation-Equipment		$2,880
Accounts Payable		$1,600
Salaries Payable		$500
Capital		$17,170
Total	$22,150	$22,150