Q24E
Question
Cynthia Elmer, CPA, had the following partial worksheet:
Requirements
1. Complete the worksheet.
2. Prepare the closing entries for Cynthia Elmer, CPA.
Step-by-Step Solution
Verified(1) Worksheet is mentioned in Step 1.
(2) Closing entries are mentioned in Step 2.
(1) Worksheet is shown as follows:
| CYNTHIA ELMER, CPA | ||||||||||||
| Worksheet | ||||||||||||
| December 31, 2018 | ||||||||||||
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| Unadjusted Trial Balance |
| Adjustments |
| Adjusted Trial Balance | Income Statement | Balance Sheet | |||||
Account Names | Debit | Credit |
| Debit | Credit |
| Debit | Credit | Debit | Credit | Debit | Credit |
Cash | $46,900 |
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| $46,900 |
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| $46,900 |
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Accounts Receivable | 9,600 |
| (h) | $3,700 |
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| 13,300 |
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| 13,300 |
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Office Supplies | 800 |
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| $500 | (b) | 300 |
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| 300 |
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Prepaid Rent | 8,000 |
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| 3,300 | (a) | 4,700 |
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| 4,700 |
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Land | 35,000 |
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| 35,000 |
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| 35,000 |
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Building | 125,000 |
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| 125,000 |
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| 125,000 |
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Accumulated Depreciation—Building |
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| 1,150 | (c) |
| $1,150 |
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| $1,150 |
Furniture | 28,000 |
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| 28,000 |
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| 28,000 |
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Accumulated Depreciation—Furniture |
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| 2,000 | (d) |
| 2,000 |
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| 2,000 |
Accounts Payable |
| $3,500 |
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| 3,500 |
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| 3,500 |
Utilities Payable |
| 710 |
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| 710 |
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| 710 |
Salaries Payable |
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| 4,200 | (f) |
| 4,200 |
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| 4,200 |
Interest Payable |
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| 500 | (g) |
| 500 |
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| 500 |
Unearned Revenue |
| 5,000 | (e) | 1,300 |
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| 3,700 |
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| 3,700 |
Notes Payable |
| 15,000 |
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| 15,000 |
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| 15,000 |
Common Stock |
| 118,000 |
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| 118,000 |
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| 118,000 |
Retained Earnings |
| 119,000 |
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| 118,090 |
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| 118,090 |
Dividends | 29,000 |
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| 29,000 |
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| 29,000 |
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Service Revenue |
| 95,000 |
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| 5,000 | (e,h) |
| 100,000 |
| $100,000 |
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Rent Expense | 20,000 |
| (a) | 3,300 |
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| 23,300 |
| $23,300 |
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Salaries Expense | 28,000 |
| (f) | 4,200 |
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| 32,200 |
| 32,200 |
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Supplies Expense |
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| (b) | 500 |
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| 500 |
| 500 |
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Utilities Expense | 25,000 |
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| 25,000 |
| 25,000 |
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Depreciation Expense—Building |
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| (c) | 1,150 |
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| 1,150 |
| 1,150 |
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Depreciation Expense—Furniture |
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| (d) | 2,000 |
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| 2,000 |
| 2,000 |
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Interest Expense |
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| (g) | 500 |
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| 500 |
| 500 |
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Total | $355,300 | $355,300 |
| $16,650 | $16,650 |
| $366,850 | $366,850 | $84,650 | $100,000 | $282,200 | $266,850 |
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| Net Income | 15,350 |
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| 15,350 |
Total |
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| $100,000 | $100,000 | $282,200 | $282,200 |
(2) Closing entries are as follows:
Date | Accounts and Explanation | Debit | Credit |
Dec. 31 | Service Revenue | $100,000 |
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| Income Summary |
| $100,000 |
| To close revenue. |
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Dec. 31 | Income Summary | $49,850 |
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| Rent Expense |
| $23,300 |
| Salaries Expense |
| $32,200 |
| Supplies Expense |
| $500 |
| Utilities Expense |
| $25,000 |
| Depreciation Expense—Building |
| $1,150 |
| Depreciation Expense—Furniture |
| $2,000 |
| Interest Expense |
| $500 |
| To close expenses. |
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Dec. 31 | Income Summary | $15,350 |
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| Retained Earnings |
| $15,350 |
| To close Income Summary |
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Dec. 31 | Retained Earnings | $29,000 |
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| Dividends |
| $29,000 |
| To close Dividends |
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