award:

1
10outof
10.00
.......... points ...........................................................................................................................................................................................
From the dropdown box beside each numbered balance sheet Item, select the letter of its balance sheet
classification. If the item should not appear on the balance sheet, choose the letter Z from the selection
choices.

A. Current assets
B. Long-term investments
C. Plant assets
o. Intangible assets
E. Current liabilities
F. Long-term liabilities
G. Equity

Account Title Classification Account Title Classification

1. Long-tem1 investment in stock B .I 11. Unearned seivices revenue E ./
2 Depreciation expense-Building z .I 12. Accumulated depreciation- Trucks c ./
Prepaid rent A .I 13. Cash .A ./
Interest receivable A .I 14. Buildings c ./
Taxes payable E .I 15. Store supplies A ./
6. Automobiles c .I 16. Office equipment c ./
7. Notes payable (due in 3 years) F .I 17. E and (used in operations) c ./
8. Accounts payable E .I 18. Repairs expense z ./
9. Prepaid insurance A .I 19. Office supplies A ./
10. OWner, Capital G .,1120. ICurrent portion of long-term note payable E ./
 Ailiii1;2513:11;0Nozoiiiicieaieiiar;;,:.i;fravei . a9enci:"Actveiifuietiavei:rhefoiio\;iiiiilfraiisaciioiis
occurred during the company's first month.

April 1 Nozomi invested $30,000 cash and computer equipment worth $20,000 in the company.
The company rented furnisl1ed office space by paying $1,800 cash for the first month's
2 (April) rent
3 The company purchased 51 ,000 of office supplies for cash.
10 The company paid $2,400 cash for the premium on a 12-month insurance policy. Coverage
begins on April 11.
14 The company paid $1,600 cash for two weeks' salaries earned by employees.
24 The company collected S8,000 cash on commissions from airtines on tickets obtained for
customers.
28 The company paid $1,600 cash for two weeks' salaries earned by employees.
29 The company paid $350 cash for minor repairs to the company's computer.
30 The company paid $750 cash for this month's telephone bill.
30 Nozomi withdrew $1,500 cash from the company for personal use.

The company's chart of accounts follows:

101 Cash 405 Commissions Earned

106 Accounts Receivable 612 Depreciation Expense-Computer Equip.
124 Office Supplies 622 Salaries Expense
128 Prepaid Insurance 637 Insurance Expense
167 Computer Equipment 640 Rent Expense
168 Accumulated Depreciation-Computer Equip. 650 Office Supplies Expense
209 Salaries Payable 684 Repairs Expense
301 J.Nozomi, Capital 688 Telephone Expense
302 J.Nozomi, Withdrawals 901 Income Summary

Use the following information:

a. Two-thirds (or $133) of one month's insurance coverage has expired.

b. At the end of the month, 5600 of office supplies are still available.
c. This month's depreciation on the computer equipment is $500.
d. Employees earned $420 of unpaid and unrecorded salaries as of month-end.
e. The company earned $1,750 of commissions that are not yet billed at month-end.

award:
2. 10 out of
10.00
points
Required :
1. The general ledger and all the necessar1 accounts are provided in Part 6.2. Post all journal entries,
adjusting entries and closing entries to the general ledger given in Part 6.2

2. Prepare journal entries to record the transactions for Ap<il and post them to the ledger accounts in
Part 6.2. The company records prepaid and unearned items in balance sheet accounts.

Date General Journal Debit Credit

April 01 Cash ./ 30.000./
Computer equipment ./ 20,000./
J. Nozomi, Caprtal ./ 50,000./

April 02 Rent expense 1,800./

Cash 1,800./

April 03 Office supplies ./ 1,000./

Gash 1,000./

April 10 Prepaid insurance ./ 2,400./

Cash ./ 2,400./

April 14 Salaries expense 1,600./

Cash 1,600./

April 24 Cash ./ 8,000./

Commissions earned ./ 8,000./

April 28 Salaries expense ./ 1,600./

Cash ./ 1,600./

April 29 Repairs expense ./ 350./

Cash ./ 350./

April 30 Telephone expense ./ 750./

Cash ./ 750./

April 30 J. Nozomi, Withdrawals ./ 1,500./

Cash ./ 1,500,.il
 award:
3. 10 out of
10.00

3. Using account balances from part 6.2, prepare an unadjuste<l trial balance as of April 30.

ADVENTURE TRAVEL
Unadjusted Trial Balance
April 30, 2013
Account Title Debit Credit
101: Cash $ 27,000yl
106: Accounts receivable o.;
124: Office supplies 1,000.;
128: Prepaid insurance 2,400.I
167: Computer equipment 20.000.;
168: Accumulated depreciation- Computer equipment o.;
209: Salaries payable o.;
301: J. Nozomi, Capital 50,000yl
302: J. Nozomi, Witlldrawals 1,500.I
405: Commissions earned 8,000./
612: Depreciation expense- Computer equipment o.;
622: Salaries expense 3,200.I
637: Insurance expense o.;
640: Rent expense 1,800.I
650: Office supplies expense o.;
684: Repairs expense 350v'
688: Telephone expense 750.I
Total 58,000 I' $ 58,000
 SV.'3.td:

4 .
10out of
10.00
............................ 'P<ll'OIS ..................................................................................................................... ..
4. Journalize the adjusting entries for the month and then post to section 6.2.

Transaction General Journal Debit .. Credit

- a. 'insurance expense
Prepaid insurance
,/
,/
133,/
133,/
I
b. Office supplies expense ,/ 400,/
Office supplies ,/ 400,/

c. Depreciation expense-Computer equip. ,/ 500,/

Accumulated depreciation-Computer equip. ,/ 500,/

d. Salaries expense ,/ 420,/

Salaries payable ,/ 420,/

Accounts receivable ,/ 1,750,/

Comn1issions earned ,/ 1,750,/
 award:
5
10outof
10.00
..................... pol'nts................................................................................................
5.1 Prepare the income statement for the month of April 30, 2013.

ADVENTURE TRAVEL
Income Statement
For Month Ended April 30, 2013
Revenues:
- - - - ~

Commissions earned .I $
-
9,750./
,Expenses:
Depreciation expense-Computer equip. .I $ 500./
Salaries expense .I 3,620.I
Insurance expense .I 133./
Rent expense .I 1.800./
Office supplies expense .I 400./
Telephone expense .I 750./
Repairs expense .I 350./
0
0
Total expenses 7,553
Net income .I $ 2,197

5.2 Prepare the statement of owner's equi~/ for the month of April 30, 2013.

ADVENTURE TRAVEL
Statement of OWner's Equity
For Month Ended April 30, 2013
J. Nozomi, Capital, April 1, 2013 1$ 0
Add: Net income .I $ 2,197./
Add: Owner investments .I 50,000./ 52,197
Less: Wrthdrawals .I 1.500./1
J.Nozomi, Capttal, April 30, 2013 .I '$ 50,697

5.3 Prepare the balance sheet at April 30, 2013.

ADVENTURE TRAVEL
Balance Sheet
April 30, 2013
Assets I
Cash 27,000.I
Accounts receivable 1.750./
Office supplies 600.I
Prepaid insurance 2,2fi7.I
Computer equipment 20,000.I
Accumulated depreciation-Computer equip 500./ 19,500
Total assets $ 51,117
Liabilities
Salaries payable --- 420.I
Equity
J. Nozomi, Capital 50,697./
Total liabilities and equity 51,111 I
 award:

6 .
10out of
10.00
........................... points ...
6.1 Prepare journal entries to close the temporary accounts and t11en post to section 6.2.

Date General Journal Debit credit

Aprif 30 Commissions earned 9.750./
Income summary 9.750./

April 30 Income summary

Depreciation expense-Computer equip. 500J
Salaries expense 3,620./
Insurance expense 133./
Rent expense 1,800./
1
Office supplies expense 400./
Repairs expense 350./
Telephone expense 750./

April 30 Income summao1 ./ 2,197./

J. Nozomi, Capital ./ 2.197./
-+--
I
April 30 J . Nozomi, Capital ./ 1,500./
J. Nozomi. Withdrawals ./ 1.500./

6.2 Post the journal entries to the ledger.

General Ledger accounts

Cash
Date
==
Debit Credit Balance
April 1 30,000./ 30,000
April2 1,800./t - 28.200 Accounts Receivable
April 3 1.000./ 27,200 Date Debit Credit Balance
April 10 2,400./ 24,800 .April 30 Adj. 1.750./ 1.750
---~-
April 14 1.600./ 23,200
1--
April24 8,000./ 31,200
.April28 1,600./ 29,600
*Red lc;..l lnU1...,tb i;. 1:::!.jJUll~ l'M ~ :.<pt!~lteiJ Ind u:I! ot d (u1m,,.1,.,i l.io~etJ :..iilw .;;111JI\ ~ l"t:t.o!'t<:\.. OU f.IUll
April 29 O;:d!_.,,.tt::l
350./ 29,250
April 30 Tel. 750./ 28,500
,April 30 WD 1,500./ 27,000

Office Supplies Prepaid Insurance

Date Debit Credit Balance Date Debit Credit
.....II Balance
April 3 1,000./
!"'""-------;-------~
1
1,000 April 10 ./_,_ __ 2,400./L
.,----~-
I
~~-~--~
2,400
April 30 Adj. 400./ 600 April 30Adj. ./' 133./J 2,267
---~
_l
Red lCJ<.l im.1 ~~4tl:'> o 1~:.1JV1+!.~ v.:1> e10.1tl:.tcd in ii i.tll v1 "(1.1rt111.1f..,.b.,!>ct.I tolo. ~iun h. ir1;.1Y1cc.t ,,-:: S)Uiti!.":o 'lktJ lt:it! indr~:t.:. u t!!>Vn:.e w<1 S ~xpc::led lr1 <1 cell ..;1 <1 h.11111ul:1bihed :...lwI..aiuu i:. irtc:111ect oo cil
<il:t.l--lE::J oJ-::\.1 ..lCl:I.

Computer Equipment Accumulated Depreciation-Computer equipment

---
5J
Date Debit Credit Balance Date Debit Credit Balance
20.000./ 20.000 .April 30 Adj. ./ 500
( pril 1 ----!-

I
!kiJ lest i11.Jil..dtb "u 'ei.1.11.11~c 1.,<iS. CXJJt:tlt:iJ iri ., u:ll ur a (un11uldb.ucl.I :...1...u:,.1it111 i!> ui-:()- 1.:~.t ''' puirb *ReiJ h:~l lnu1...,tb "1:::!>1JUH~ 1M ~ :.<pt!~lteiJ Ind u:I! ot .i ru1m,,.1,.,i l.io:.~tJ :..iilw .;;!llJI\ ~ l"t:t.o!'t<:. nu uu
d~d:.d1....J d.::ll -<.hi:t3.

Salaries Payable J. Nozomi, Capital

Date Debit Credit Balance Date Debit Credit Balance

[Adj ~
420./ 420 50,000./ 50,000
April 30 Inc 2.197./r 52~~
T April 30WD 1,500.I 50.697

RcCI lcl<.l i11di.c.it..::. r:> se:.fJU~:r.c w.i~ t:-'-p~:.lcCI ir1 <i Ct:ll ur <1 fu1u1i..l.3 1J4:r..:IJ c...1w,4:iu11 if> 1n,.:.o.i1c<.t. tl<l j.1tii11~
<J::J .."-Lt:tL

J. Nozomi, Withdrawal s Commissions earned

Date Debit Credit Balance Date Debit Credit Balance
April 30 WD ./ 1.500./ 1.500 April 24 8,000./ 8,000

April 30 Close ./ 1,500./ 0 April 30Adj. 1,750./ 9,750

April 30 Close 9,750./ 0
Red teitl im.l ~~tt:'> tr ;~:.IJVl!.C v.<1> <:!XIJti:.lt!d iri O Ltdl IJ! ,;, (1.1rr11uf..,.b.,!.tet.I :.olu.: ~jl)I\ h. !r1;.1Y1ec.t ,,-:: l)Uiti!.">-
.u:d~-le:j

Salartes Expense
Depreciation Expense--Computer Equipment
= Date Debit Credit Balance
Date Debit Credit Balance
April 14 ./ 1.600./1 1.600
April 30Adj. ./ 500./ 500
500y ..._
>-- .April 28 ./ 1,600./ 3,200
( pril 30 Clos_
e __
./
'"" 0
April 30 Adj. ./ 420./ 3.620
l April 30 Close
-~~--
./ 3.620./ 0
'Rtea h:,.,l iud.<;<ite :> ce!.1J011:.c 1~:1:. ~XfJe:.lted in o :.t:ll <11 o (1)1 ni.;l:11J4:.<:d Caolo,; a:iuo i!. i1-.:.:n!<."!. n~ l'Olrt:'!.
~.::J _.de:J.

Insurance Expense Rent Expense

... Date
~~~~-~~-~~-
ApriI 30 Adj. ./
Debit
133./
Credit Balance
133 April 2
Date
./
Debit
1.800./
Credit Balance
1,800
April 30 Close ./ 133./ 0 April 30 Close ./ 1,800./ 0
I I
R.:U l cxl ind.wto:.:. u 41:!.!Jtm!.c W<1$ :x!Jc:.h::IJ In <1 u:!! u1 o (1.11111ul.:iIJ0:.c!.I ~dku ,.;1u11 Ii. j,,t;1.>1~.~ no !Julnb Rt:IJ l~:d 1111.lW-tl:'!> t:.>Jl=t>f,IVll:Ot: W<I\> t:Xj.IC:.~~ll 111 <I t.l:ll TJI d (011111Jl..:llJo'>l;!tJ ( 1:SiW .::1U11 I!> l lll,;\.O.'.f {!t;! tHJ Vii
<J~du.tc~ d.::cl-dcd.

Date
April 30 Adj.
Office Supplies Expense
Debit
400./
Credit Balance
400 April 29
Date
./
Debit
Repairs Expense

350./
Credit Balance __.
350
April 30 Close 400./ 0 .April 30 Close ./ 350./ 0
--+---

Rcd l<=X.I ii u.l...<11'=-'- u ~:.Un!.~ l'l d:. :,o;j):::Llted ill a u:ll ur o ft111111iLfIJd!><!:l.I Loki.; otiuh b lr1u.>U ..:1..! JUU ui tU. Rtiu l<:xt ln1.!>;Ai.16 u ~:.f.IOu.lo! ~..s ':!.ltl't't.lt!U in a u.:11 u1., fu11111..tl<1bH.ciJ 1.4lt.1.. =!lun b l rX:IJ(1r.:... : no IJQii
C<:dt.Xh..'-0 dJ1.K.lc!J.

Telephone Expense Income Summary

Debit Credit Balance Date Debit Credit

April 30 ./ 750 April 30 Rev. ./ 9,750./
April 30 Close ./ 750./ 0 .April 30 Exp. ./ 7,553./ 2,197

R.:U lcxl ind.wto:.:. u 41:!.!Jtm!.c W<1$ :x!Jc:.h::IJ In <1 u:!! u1 o (1.11111ul.:iIJ0:.c!.I ~dku ,.;1u11 Ii. lrt;1.>1 ~.~ no !Julnb
April 30 Close ./ 2,197./
I 0

<.l~du.tc~
 award:
7. 10 out of
10.00
.... ... ... ... ... ... "poi'iits .............................................................................. .....................................................................................................................
7. Prepare a post-closing trial balance. (Please prepare your trial balance i n chan of acco unts o rder
g iven in the q uestio n.)

ADVENTURE TRAVEL
Post-Closing Trial Balance
April 30, 2013
Account TiUe Debit Credit
Cash ./ $ 27.000./
Accounts receivable ./ 1,750./
Office supplies ./ 600./
Prepaid insurance ./ 2,267./
Computer equipment ./
Accumulated depreciation-Computer equipment ./ 500./
Salaries payable ./ 420./
J.Nozomi, Capttal ./ 50,697./
.~~~~~~-'--~~~~~--;

Totals 1$
~~~~~~-'--~~~~~-'
51.617 $ 51,617 I
 award:
8. 10 out of
10.00
........................... poin1s
The adjusted trial balance for Tybalt Construction as of December 31 , 2013, follows.
TYBALT CONSTRUCTION
Adjusted Trial Balance
December 31, 2013
No. Account Title Debit Crecfit
101 Cash s 5,000
104 Short-term investments 23,000
125 Supplies 8,100
128 Prepaid insurance 7,000
167 Equipment 40,000
158 Accumulated depreciation- Equipment s 20,000
173 Building 150,000
174 Accumulated depreciation- Building 50.000
183 Land 55,000
201 Accounts payable 15,500
203 Interest payable 2,500
208 Rent payable 3,500
210 Wages payable 2,500
213 Property taxes payable 900
233 unearned professional fees 7,500
251 Long-term notes payable 67,000
301 o . Tybalt, Capital 125,400
302 0 . Tybalt, Withdrawals 13,000
401 Professional fees earned 97,000
Rent earned
406 14,000
Dividends earned
407 2,000
409 Interest earned 2.100
605 Depreciation expense-Building 11,000
612 Depreciation expense-Equipment 5,000
623 Wages expense 32,000
633 Interest expense 5,100
637 Insurance expense 10,000
640 Rent expense 13,400
652 Supplies expense 7,400
682 Postage expense 4,200
683 Property taxes expense 5,000
684 Repairs expense 8,900
688 Telephone expense 3,200
690 Utilities expense 4,600

Totals s 411,900 $ 411,900

0 . Tybalt invested $5,000 cash in the business during year 2013 (the December 31, 2012, credit balance
of the o . Tybalt, Capital account was S121,400). Tybalt Construction is required to make a $7,000
payment on its long-term notes payable during 2014.
Required :
1.1 Prepare the income statement for the calendar year 2013.

TYBALT CONSTRUCTION
Income Statement
For Year Ended December 31, 2013
Revenues
Professional fees earned ./ $ 97,00o./
Rent earned ./ 14.000./
Dividends earned ./ 2,000./
Interest earned ./
$
$
Total revenues $ 115.100
Expenses
Depreciation expense-buildi~g ./ 11.00o./
r
Depreciation expense-equipment ./ 6.000./
Wages expense ./ 32,000./
Interest expense ./
Insurance expense ./
Rent expense ./
Supplies expense ./
Postage expense ./ 4.200./
Property taxes expense ./ 5,000./
Repairs expense ./ 8.900./
Telephone expense ./ 3,200./
./
4.60~./1
Utilrties expense

Total expenses 110,800

Net income $ 4,300./

1.2 Prepare the statement of owner's equity for the calendar year 2013.

TYBALT CONSTRUCTION
Statement of OWner's Equity
For Year Ended December 31, 2013
O. TYbalt, Capital, Dec. 31, 2012 ./ :$ 121,400.,.I
Add: Investments by owner 5,000./
Add: Net income 4,300./

Less: Withdrawals by owner

o . Tybalt, Capital, Dec. 31, 2013
 1.3 Prepare the classified balance sheet at December 31 , 2013..

TYBALT CONSTRUCTION
Balance Sheet
Decernber31,2013
Assets
Current assets ./
Cash ./ $ 5,000./
Short-term investments ./ 23,000./
Supplies ./ 8,100./
Prepaid insurance ./ 1.000.11
Total current assets ./ $ 43,100
Plant assets ./
Equipment ./ 40.000./
Accumulated depreciabo~qu1pment ./ 20.000.11 20.000
Building ./ 150.ooo,/l
Accumulated depreciafion-building ./ 50,000./ 100,000
Land ./ 55,000./
Total plant assets ./ __, 175.000
Total assets ./ 1$ 218,100
Liabilities ./
Current liabilities ./
Accounts payable ./ 16.500./
Interest payable ./ 2,500./
Rent payable ./ 3,500./
Wages payable ./ 2,500./
Property taxes payable ./ 900./
Unearned professional fees ./ 7,500./
Current portion o! long-term note payable ./ 7,000./

f
Total current liabilities ./ 40,400
Long-term liabilities .JI
Long-term notes payable ./ 60,000./
Total liabilities ./ 100.400
Equity ./
o. Tybalt, Capital ./ 117,700./

2. Prepare the necessary closing entries at December 31, 2013.

Closing entries (all dated December 31. 201 3):

Date General Journal Debit Credit

Dec 31 Professional fees earned ./ 97.000./
Rent earned ./ 14.000./
Dividends earned ./ 2,000./
Interest earned ./ 2.100./
Income summary ./ 115.100./

Dec 31 Income summary ./ 110,800./

Depreciation expense-building ./ 11.000./
Depreciation expense-equipment ./ 6 ,000./
Wages expense ./ 32.000./
Interest expense ./ 5,100./
Insurance expense ./ 10,000./
Rent expense ./ 13,400./
Supplies expense ./ 7,400./
Postage expense ./ 4,200./
Property taxes expense ./ 5.000./1
Repairs expense ./ 8,900./
Telephone expense ./ 3,200./
Utilities expense ./ 4,600./

Dec 31 Income sum mar~ ./ 4.300./

o. Tybalt, Capital ./ 4,300./1

Dec 31 o. Tybalt, Capital ./ 13,000./

o. Tybalt, Wrthdrawals ./ 13.000./

3. Use the information in the financial statements to compute Ille following ratios:

1aJ Return on assets (total assets at December 31, 2012. was $200,000)
Numerator: I Denominator. Return on total assets
Net income ./ Average total assets ./ = Return on total assets
=
$
b)
4,300./
~~
Debi ratio
... ~~ .....$
~-
209.050./ 2.06 %

$
Numerator:
Tota!liabilities
100.400./
./
$
Denominator.
Total assets ./
21 8,100./
=
=
+ Debt ratio
Debt ratio

d4t>; j
~,......~~......~ ~...i.~~~.....iiiiiiii--~.-;;--.....iiiiiiiiiiiiiiiiiiiiiiii.....m/
c) Profit margin ratio (use total revenues as the denominator)
Numerator: Denominator: Profit margin

Net income ./ Total revenues ./ ~t margin

$ 4,300./ $ 115,100./ = '.H G %
d) Current ratio
Numerator: Denominator: Current ratio
Current assets ./ Current liabilities ./ = Current ratio
$ 43.100./ $ 40,400./ = { 07 :1
 award:
9 9.76 out of
10.00
points
Refer to the following Hawkeye Ranges.
a. As of December 31 , 2013. employees had earned $1,200 of unpaid and unrecorded salaries. The
next payday is January 4, at which time $1 ,500 of salaries will be paid.
b. The cost of supplies still available at December 31 , 2013 . is $3,000.
c. The notes payable requires an interest payment to be made every three months. The amount of
unrecorded accrued interest at December 31, 2013, is $1,875. The next interest payment. at an
amount of $2,250, is due on January 15, 2014.
d. Analysis of the unearned member lees account shows $5,800 remaining unearned at December 31 ,
20 13.
e. tn addition to the member fees Included in the revenue account balance, the company has earned
another S9,300 in unrecorded fees that will be collected on January 31, 2014. The company is also
expected to collect $10,000 on that same day for new fees earned in January 2014.
f. Depreciation expense for the year is S15.000.

Required :
1. Complete the six-column table by entering adjustments that reftect the above information. (Enter
member fees earned amount in the same order as they appear above.)

HAWKEYE RANGES
WOf1< Sheet
December 31, 2013
Unadjusted Adjusted
T~Balance Adjustments Trial Balance
Account TiUe Dr. Cr. Dr. Cr. Dr. Cr.
Cash 1$ 14,000 $ 14,00o.,.I
IAccounts receivable x x
Supplies 6,500 3,500.,I 3,000.,I
Equipment 135,000 135,000.,I
Accumulated depreciation-Equipment $ 30,000 15.000.,I 45,000.,/
Interest payable 1,875.,I 1,875.,I
ISalaries payable 1,200.,I 1,200.,I
Unearned member fees 15,000 9,200.,I 5,800.,I
tNotes payable 75.000 75,000.,/
P. Hawkeye, Capital 50,250 50,250.,I
,P. Hawkeye, Withdrawals 21,125 21,125.,I
IMember iees earned 42.000 9.200.,/ 60,500.,/
9 ,300.,I
IDepreciation expense-Equipment 15,000.,/ 15,000.,I
Salaries expense 30,000 1.200.,/ 31,20o.,.I
1 t expense 5.625 1,875./ 7,500./
1- --
Supplies expense 3,500.,/' 3.500.,/
1
Totals 1$ 212,250 1$ 212,250 .,$ 30.775 $ 40.075 s 230.325 $ 239,625

2. Prepare journal entries for the adjustments entered in the six-column table for part 1.

Date General Journal Debit Credit

dee. 31, 2013 Salaries expense .I 1.200.,/
salaries payaf)le .I 1,200.,I

dee. 31, 2013 Supplies expense .I 3.500.,I

+---=--!
Supplies .I 3,500./

dee. 31, 2013 Interest expense .I 1,875./

Interest payable .I 1,875.,I

dee. 31, 2013 Unearned member fees 9.200.,I

Member fees earned 9,200.,/

dee. 31. 2013 Accounts receivable 9,300.,I

Member fees earned 9,300.,I

dee. 31, 2013 Depreciation expense-Equipment 15,000.,I

Accumulated depreciation-Equipment 15,000.,/
---~

3. Prepare journal entries to reverse the effects of the adjusting entries that involve accruals. {If no
reversing entry is required, select "No reversing entry required.")

Date General Journal Debit Credit

jan. 1. 2014 Salaries payable .I 1.200.,I
Salaries expense ./ 1,200.,/ 1

jan. 1, 2014 No reversing entry required

jan. 1. 2014 Interest payable 1,875.,I

!merest expense 1,875.,I

jan. 1. 2014 Member fees earned 9,300.,/

Accounts receivable 9 ,300.,I

jan. 1, 2014

jan. 1, 2014
No reversing ento; required

' No reversing entry required

+
_j
4. Prepare journal entries to record the cash payments and cash collections described for January.
(Assume reversing entries were prepared.)

Date General Journal Debit Credit

jan. 4, 2014 Salaries expense .I 1.500.,I
Cash .I l ,500.,I

jan. 15, 2014 Interest expense .I 2.250.,/

Cash .I' 2 ,250.,I

jan. 31, 2014 .Cash 19,300.,I

Member fees earned 19,300.,/
----