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    Journal Entries and financial statements

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    A. E4-1 - Complete the worksheet:
    The adjusted trial balance columns of the worksheet for Cajun Company are as follows:
    Cajun Company
    Worksheet (partial)
    For the month ended April 30, 2006
    Adjusted trial Income Balance
    Balance Statement Sheet
    Account Titles Dr. Cr. Dr. Cr. Dr. Cr.
    Cash 14,752
    Accounts 7,840
    Receivable
    Prepaid Rent 2, 280
    Equipment 23,050
    Accumulated 4,921
    Depreciation
    Notes 5,700
    Payable
    Accounts 5,672
    Payable
    Common 25,000
    Stock
    Retained 8,960
    Earnings
    Dividend 3,650
    Service 12,590
    Revenue
    Salaries 9,840
    Expense
    Rent 760
    Expense
    Depreciation 671
    Interest 57
    Expense
    Interest 57
    Payable

    Totals 62,900 62,900

    b. E4-2 - Prepare financial statements from worksheet above.
    Worksheet data for Cajun Company are presented above. No common stock was issued during April.
    Prepare an income statement, a retained earnings statement, and a classified balance sheet.

    c. E4-3 - Using worksheet info for Cajun Company above:
    Journalize the closing entries at April 30.
    Post the closing entries Income Summary and Retained Earnings. Use T Accounts
    Prepare a post closing trial balance at April 30.

    © BrainMass Inc. brainmass.com October 9, 2019, 9:42 pm ad1c9bdddf
    https://brainmass.com/business/financial-statements/journal-entries-and-financial-statements-194802

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    E4-1

    CAJUN COMPANY
    (Partial) Work Sheet
    For the Month Ended April 30, 2006
    Adjusted Trial Balance Income Statement Balance Sheet
    Account Titles Dr. Cr. Dr. Cr. Dr. Cr.
    Cash 14,752 14,752
    Accounts Receivable 7,840 7,840
    Prepaid Rent 2,280 2,280
    Equipment 23,050 23,050
    Accum. Depreciation 4,921 4,921
    Notes Payable 5,700 5,700
    Accounts Payable 5,672 5,672
    Common Stock 25,000 25,000
    Retained Earnings 8,960 8,960
    Dividends 3,650 3,650
    Service Revenue 12,590 12,590
    Salaries Expense 9,840 9,840
    Rent Expense 760 760
    Depreciation Expense 671 671
    Interest Expense 57 57
    Interest Payable 57 57
    Totals 62,900 62,900 11,328 12,590 51,572 50,310
    Net ...

    Solution Summary

    The solution explains the preparation of financial statements using the adjusted trial balance and the preparation of closing entries.

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