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Journal Entries and financial statements

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.

Attachments

Solution Preview

Please see the attached file.

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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