Question

2. Consider the following worksheet for Parker's Cleaning Service (Click the icon to view the partial worksheet with the trial balance, adjustments, and adjusted trial balance columns.) (Click the icon to view the partial worksheet with the income statement and balance sheet columns) From the worksheet, (1) joumalize and post adjusting and closing entries. The unadjusted balances have been entered into the ledger accounts for you, and (2) prepare from the ledger a post-closing trial balance for the month of December. 1 Trial Balance, Adjustments, and Adjusted Trial Balance columns of the worksheet Parker's Cleaning Service Worksheet (Partial) For Month Ended December 31, 201X Trial Balance Adjustments Adjusted Trial Balance Account Titles Dr Dr Dr. Cr. 700 1,240 290 3,780 700 650 122 3,780 Cash Prepaid Insurance Cleaning Supplies Auto Accum. Depr, Auto Accounts Payable B. Parker, Capital B. Parker, Withdrawals Cleaning Fees Salaries Expense Telephone Expense Advertising Expense Gas Expense (A) 590 (B) 168 780 580 2,320 1,530 580 2,320 (C) 750 460 460 4,960 4,960 1.390 210 280 290 1,710 210 280 290 (D) 320 8,640 8,640 Totals Insurance Expense Cleaning Supplies Expense Depr. Expense, Auto Salaries Payable (A) 590 (B) 168 (C) 750 590 168 750 (D) 320 1,828 320 1,828 9,710 9,710 Totals 2: Income Statement and Balance Sheet columns of the worksheet Parker's Cleaning Service Worksheet (Continued) For Month Ended December 31, 201X Income StatemenBalance Sheet Account Titles Dr. Cr. Dr. Cr. Cash Prepaid Insurance Cleaning Supplies Auto Accum. Depr. Auto Accounts Payable B. Parker, Capital B. Parker, Withdrawals Cleaning Fees Salaries Expense Telephone Expense Advertising Expense Gas Expense 700 650 122 3,780 1,530 580 2,320 460 4,960 1,710 210 280 290 Insurance Expense Cleaning Supplies Expense Depr. Expense Auto Salaries Payable 590 168 750 320 Totals Net Income Totals 3,998 4,960 5,712 4,750 962 962 4,960 4,9605,7125,712 (1) Journalize and post adjusting and closing entries. The unadjusted beginning balances have been entered into the ledger accounts for you Start by journalizing the adjusting entries, beginning with adjustment A. (Record debits first, then credits. Exclude explanations from adjusting and closing jounal entries. For purposes of this problem, ignore posting references.) Journal Entry Date Account Titles PR Dr Cr 201X Dec Journalize adjustment B Journal Entry Date Account Titles PR Dr. Cr. 201X Journalize adjustment C Journal Entry Account Titles PR Dr. 201X Dec (10) Activate Windows Go to Settings to activate Windows 12) Journalize adjustment D Journal Entry Date Account Titles PR Dr 201X Dec. 13 15 16 Now journalize the closing entries Begin by closing out the revenue account. Journal Entry Date Account Titles PR Dr. 201X Dec. 18 19 20 Close out the expense accounts. Journal Entry Date 201X Dec. Account Titles PR Dr. 21) (22) 23 24 25 26 (27) 28 29 30 Close out Income Summary Journal Entry Date Aocount Titles Dr. Cr. 201X Close out the Withdrawals sccount Journal Entry Date Account Titles Dr. Cr. (38) Post the acjusting and closing entriss. The unadjusted balances from the trial balance columns of the warkshest have been antared into the ledger accounts for you (it more than one transaction is required to post to any account post the antries in the same order you recorded them in urnal Only uaa Explanation" column man lines as needed to post the transac on to thฉ account숲 f the balanc za o after postng an entry l@a g the balance columns blank. Do not encar a "O". For Purposas o this problem gnora posti e reference select applicable dese ipton Cash Account No Post Explanation 201x Bal 700 Dec. Prepaid Insurance Account No Post Explanation Activate Windows Go to Settings to activate Windows 201x Bal 1.240 Dec Cleaning Supplies Account No Post. Balance Date Explanation Ref Debit Credit Debit Credit 201X 290 Dec 40 Auto Post. Ref Account No Balance Date Explanation Debit Credit Debit Credit 201X 3.780 Dec. Accumulated Depreciation, Auto Account No Post. Balance Date Explanation Ref Debit Credit Debit Credit 201X 780 Dec Accounts Payable Account No Post. Balance Date Explanation Ref. Debit Credit Debit Credit 201x 580 Dec Salaries Payable Account No Post. Balance Date Explanation Ref Debit Credit Debit Credit 201x Dec. 42) B. Parker, Capital Account No Post. Balance Date Explanation Ref Debit Credit Debit Credit 201x 2.320 Dec. 43 44) B. Parker, Withdrawals Account No Post. Balance Date Explanation Ref Debit Credit Debit Credit 201X Bal 460 Dec 45 Income Summary Account No Post. Balance Date Explanation Ref Debit Credit Debit Credit 201X (48) (47) 48) Dec. Cleaning Fees Account No Post. Balance Date Explanation Ref Debit Credit Debit Credit 201x 4,980 Dec 49) Salaries Expense Account No Post. Balance Date Explanation Ref Debit Credit Debit Credit 201X 1,390 Dec. Telephone Expense Account No Post Balance Date Explanation Ref Debit Credit Debit Credit 201X 210 Dec (52) Advertising Expense Account No Post. Balance Date Explanation Ref Debit Credit Debit Credit 201X 280 Dec 54 Gas Expense Account No Post. Balance Date Explanation Ref Debit Credit Debit Credit 201x Bal 290 Dec 55) Insurance Expense Account No Balance Debit Credit Debit Credit 201X (58) (57) Cleaning Supplies Expense Account No Balance Debit Credit Debit Credit 201x Depreciation Expense, Auto Account No Balance Ref Debit Credit Debit Credit 201x (2) Prepare a post-closing trial balance for the month of December Review the general ledger Parker's Cleaning Service Post-Closing Trial Balance December 31, 201X Account Titles Cr. (62) (63) (64) (65) (63) (68) (69) Totals

Answer 1

Parker's Cleaning Service Date Account Debit Credit Calculation Adiusting Journal entries Adj A201X, Dec 31 Insurance Expense S590 Prepaid Insurance $ 590 Adj B 201X, Dec 31 Cleaning Supplies Expense $168 Cleaning Supplies $ 168 Adj C 201X, Dec 31 Depr. Expense, Auto 750 Accum. Depr., Auto $750 Adj D $320 201X, Dec 31 Salaries Expense Salaries Payable $320 Closing entries Entry 1 201X, Dec 31 Cleaning Fees $ 4,960 Income Summa $ 4,960 Entry 2 201X, Dec 31 Income Summa $ 3,998 Salaries Expense Telephone Expense Advertising Expense Gas Expense Insurance Expense Cleaning Supplies Expense Depr. Expense, Auto $ 1,710 $ 210 $ 280 $ 290 $ 590 $ 168 $750 Entry 3 201X, Dec 31 Income Summa 962 -4960-3998 B. Parker, Capital $ 962 Entry 4 201X, Dec 31 B. Parker, Capital 460 B. Parker, Withdrawals 460

Parker's Cleaning Service T Accounts Date Debit Date CreditDate Debit Date Credit Date DebitDate CreditDate Debit Date Credit Cash Prepaid Insurance Cleaning Supplies Auto Op bal 700 Op bal $ 1,240 AdjA 590 Op ba 290 Adj B 168 Op bal 3,780 Bal $ 700 Accum. Depr., Auto Bal $ 650 Accounts Payable Bal $ 122 Bal 3,780 B. Parker, Capital Salaries Payable Op ba $ 580 Op bal $ 780 Adjc $ 750 Op bal Adj D$320 Entry4 $460 Op ba 2,320 Entry 3 962 Bal 1,530 Bal $ 580 Bal $ 320 Bal $ 2,822 B. Parker, Withdrawals Income Summary Op ba 460 Etry 4 $ 460 Entry 21,710 Entry 14,960 Entry 2 210 Entry 2 280 Entry 2 $ 290 Entry 2 5 Entry 2 $ 168 Entry 2 750 Entry 3 S 962 Bal Bal Cleaning Fees Salaries Expense Telephone Expense Advertising Expense Entry 1 4,960 Op ba 4,960 Op ba 1,390 Op bal210 Op bal $ 280 AdjD 320 Entry 2 1,710 Entry 2 210 Entry 2 $ 280 Bal $Bal. Bal Bal Gas Expense 290Entry 2 $ 290 AdjA 590 Entry 2 590 AdjB Cleaning Supplies Expense 168 Entry 2 Insurance Expense Depr. Expense, Auto Op ba 168 Adjc 750 Entry 2 $ 750 Bal Bal Bal Bal

Parker's Cleaning Service Account Names Cash Prepaid Insurance Cleaning Supplies Post Closing TB Credit Debit 700 650 122 3,780 Accounts Payable Salaries Payable B. Parker, Capital Totals 1,530 580 320 2,822 5,252 5,252