Question

ROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit Recerding sapplies and ideatifing their dfect on finenciel stetemeats Exercise 13-108 LO 13-1, 13-3, 13-4 Laurs Moss started and operated a small family consuking firm in Year L The firm was aflected by two events (1) Moss provided $36,000 of services on acount, and (2) she purchased $10,000 of supplies on account. There were $1800 of supplies on hand as of December 31, Year L Required Open Teccounts and record the two transactions in the accounts. h Recoed the required year end adjusting entry to reflect the use of supplies. c. Show the above transactions in a horizontal statements model bke the following one Balance Sheet Income Statement Statement -Liab. +Stk. Equity Assets of Cash Flows Accts Ret. Eam. Accts Rev Exp. Net Inc Rec. Supples=Pay.+ Explain wty the amounts of net income and net cash flow from operating activities differ Recond and post the required closing entries, and prepare a post closing trial balance 4 a., b., & e. + Stockholders' Equity Retained Earnings Liabilities Assets Accounts Pay. Accounts Rec. Debit Credit Debit Credit Debit Credit Bal. Bal. Bal. I Service Revenue Supplies Debit Credit Debit Credit Bal. Supplies Expense Credit Debit 201 Chapter 13 Workpaper 4,860 characters. (Protected View) Type here to search

Answer 1

Exercise 13-10B:

a,b&e:

Assets		=	Liabilities		+	Stockholders' Equity
Accounts Rec.			Accounts Pay.			Retained Earnings
Debit	Credit		Debit	Credit		Debit	Credit
a1 $36,000				a2 $10,000		e. $8,200	e. $36,000
Bal. $36,000				Bal. $10,000			Bal.
Supplies						Service Revenue
Debit	Credit					Debit	Credit
a2 $10,000	b $8,200					e. $36,000	a1 $36,000
Bal.$1,800
						Supplies expense
						Debit	Credit
						b $8,200	e. $8,200

c.

	Assets			=	Liab.		Stockholders' Equity				Revenue	-	Exp.	=	Net Inc.	Cash Flows
No.	Accts. Rec.	+	Supplies	=	Acct. Pay.	+	Common Stock	+	Ret. Earn.
a1	$36,000								$36,000		$36,000				$36,000	Operating activity
a2			$10,000		$10,000											Operating activity
b			($8,200)						($8,200)				$8,200		($8,200)	Operating activity
Bal.	$36,000		$1,800		$10,000				$27,800		$36,000		$8,200		$27,800

e.

Closing entry:

Date	Account title and explanation	Debit	Credit
12/31	Service revenue	$36,000
	Retained earnings		$36,000
	[To close revenue accounts]
12/31	Retained earnings	$8,200
	Supplies expense		$8,200
	[To close expenses account]

Post-closing Trial Balance:

Post-Closing Trial Balance
December 31, Year 1
Account Title	Debit	Credit
Accounts receivable	$36,000
Supplies	$1,800
Accounts payable		$10,000
Retained earnings		$27,800
Total	$37,800	$37,800

Exercise 13-12B:

Accounts receivable
Debit	Credit
Beg. Bal. $105,000	Cash inflows $467,000
Earned during the year $448,000
Ending Bal. $86,000

Exercise 13-13B:

Accounts payable
Debit	Credit
Cash outflow $96,000	Beg. Bal. $36,000
	Incurred during the year $108,000
	Ending Bal. $48,000