Repeat question re: accounting

Files are attached.

Question 4 gives the information.

Page 146 item IV should read $20,000

2

>Ch

6 LP 3

,

0

8

1

1

3,000

1

1

0

1

1

1

0

An Important Restaurant Corporation

8

at July 31, 2007

Net income 1

1

0

An Important Restaurant Corporation

at July 31, 2008

1

1

1

1

1

1

650 1

1

Retained earnings 8,650

Stockholders’ Equity

1

1

Other income 1

0

Income summary 0

1
Other expenses 1

1

Income tax expense 1

Income summary 0

Retained earnings 1

An Important Restaurant Corporation

Cash Accounts payable Common stock
3,000

5,700

5,000

,000

2,000

Retained earnings

650 8,000

CE

1

8,650

3,000 3,000 1,300 1,300 7/31 CE

Other income
7/31 CE 300 300 Other expenses

7/31 CE 1

Income summary

7/31

7/31 200 7/31 CE 1

7/31 CE 650 650
Income tax expense
650 7/31 CE 1

An Important Restaurant Corporation

at July 31, 2008

Cash 1
5,000
Property & equipment 1
Accumulated depreciation 2,000
Accounts payable 1
650
Common stock 1
Retained earnings 8,650

1

0

Chapter 6 – Long Problems

Possible Marks

Your Mark

3.

(a)

An Important Restaurant Corporation

Income Statement

for the year ended July 3 Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper

1

2

0

Revenues

3,000

Other income

Total Revenue

Expenses

1,

300

Other expenses

20

Income tax expense

Total expenses

Net income

6

5

Statement of Retained Earnings

for the year ended July 31,

200

Retained earnings

8,000

Add:

Subtotal

Less:

Dividends

Retained earnings

at July 31, 2008

8,6

50

Balance Sheet

Assets

Cash

5,000

Property & equipment

Less:

Accumulated depreciation

2,000

Total Assets

Sherrill Palmer: Sherrill Palmer: Does the Balance Sheet balance?

Liabilities

Accounts payable

Total Liabilities

Stockholders’ Equity

Common stock

5,700

Total Stockholders’ Equity

14,350

Total Liabilities and

(b)

Income summary

To close the temporary (nominal) revenue accounts

To close the temporary (nominal) expense accounts

To close the income summary account

(c)

General Ledger

1,000

Accounts receivable

Property & Equipment

Accumulated Deprec.

10

Income tax payable

7/31

Sales

Salaries & Wages

7/31 CE

500

Interest expense

2650

3300

(d)

Post-Closing Trial Balance

Dr

Cr

Totals

34

Ch 6 LP 4

Possible Marks Your Mark

2008

Dr Cr

usting Entries

50 1

1

2/29 10 1

payable

1

2/29 Other expenses 1

1

2/29 20 1

Accrued expenses payable 1

2/29 Other expenses 1

2
2/29 2
Accumulated depreciation 1

2/29 2

2

2

Income summary 1
2/29 Income summary 1

2
2
2
2
2

2/29 Retained earnings 1

Income summary 1

2

20

3/1 2
2

Lively Inn

General Ledger

Cash Accounts payable Common stock
300

200

Accounts receivable

50 10

1

Accrued expenses

Adj. Adj 2

Adj. 2
1
10 Adj. 200 1
5 1
Accumulated depreciation
Income summary Adj. 1
2/29

2/29 2

1

Retained earnings
300
2/29 CE

1

Salaries & Wages

2/29 CE 200 200 100 2/29 CE 1
Adj. 1
2/29 CE

20 2/29 CE 2

1

Interest expense

2/29 CE 50 50 2/29 CE 2

Adj. 1
1

100 2/29 CE Other expenses 1
20 2/29 CE 1

Adj. 1
Adj. 1

1

(d) Lively Inn
Income Statement 1
1
Revenues
Room sales 1
Food sales 1
Beverage sales 1

1

Expenses

Salaries expense 1

1

Other expenses 1
Interest expense 1
Depreciation expense 1
Total expenses 1

1

Lively Inn

Balance Sheet

1

Assets
Cash 1

Accounts receivable 2
Food inventory 1
Supplies inventory 2
Prepaid insurance 1

2

2

Total Assets 1

Liabilities

Accounts payable 2
Accrued expenses 1

2

Total Liabilities 1

Stockholders’ Equity

Common stock 1
Retained earnings 2
Total Stockholders’ Equity 1

Lively Inn

Post-Closing Trial Balance

at February 29, 2008

Dr Cr

2

2
2
2
2
2

2

2
2
2
2
2

Totals 2

0

4.

(b), (e) and (h)

Lively Inn

General Journal

Date

Description

Adj

2/29

Food inventory

To record food used in sales

Accrued expenses

To accrue interest on note payable

Supplies inventory

To record supplies used during period

To accrue incurred by unpaid salaries

To record expired insurance

To record depreciation expense

Closing Entries

To close revenue accounts

To close expense accounts

To close income summary account

Reversing Entries

3/1

Salaries expense

To reverse salaries expense accrual

To reverse interest expense accrual

(a), (c) and (f)

120

Prepaid insurance

Note payable

225

Adj.

100

40

Food Inventory

140

Supplies Inventory

Furniture & Equipment

55

355

2/29 CE

Room sales

Food sales

Depreciation expense

80

Beverage sales

Cost of food sold

Total revenues

Cost of food sold

Net Loss

at February 29, 2008

Furniture & fixtures

Less: Accumulated depreciation

Notes payable

Total Liabilities & Stockholders’ Equity

(g)

129