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Effects of reversing entries

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SE1: Resequence the following activities to include the usual order of the accounting cycle.

b. Analyze the transactions
f. Record the transactions in the journal
c. Post the entries to the ledger
h. Prepare the initial trial balance
e. Adjust the accounts
d. Prepare the financial statements
a. Close the accounts
i. Prepare the adjusted trial balance
g. Prepare the post-closing trial balance
j. Reversing Entries

SE2: Assume that at the end of the accounting period there are credit balances of $3,400 in Patient Services Revenues and $1,800 in Laboratory Fees Revenues. Prepare the required closing entry in journal form. The accounting period ends December 31.

General Journal

Date
Item Post.
Ref.
Debit
Credit
Dec 31 Patient Services
Revenue 3,400

Laboratory Fees
Revenue 1,800

Income Summary

Date
Item Post.
Ref.
Debit
Credit
Dec 31 Closing 5,200
Close Expenses accounts to income summary

SE3: Assume that debit balances at the end of the accounting period are $1,400 in Rent Expense, $1,100 in Wage Expense, and $500 in Other Expense. Prepare the required closing entry in journal form. The accounting period ends December 31.

General Journal

Date
Item Post.
Ref.
Debit
Credit
Dec 31 Rent Expense 1,400

Wage Expense 1,100

Other Expense 500

Income Summary

Date
Item Post.
Ref.
Debit
Credit
Dec 31 Close Expenses accounts to income summary
3,000

SE4: Assuming that total revenues were $5,200 and total expenses were $3,000, prepare the entry in journal form to close the Income Summary account to the H. Blake, Capital account. The accounting period ends December 31.

Income Summary

Date
Item Post
Ref.
Debit
Credit Balance
Debit Credit

Dec 31
Income Summary
H. Blake Capital
Closed the Income Summary account
2,200

2,200

SE5: Assuming that withdrawals during the accounting period were $800, prepare the entry in journal form to close the H. Blake, Withdrawals account to the H. Blake, Capital account- The accounting period ends December 31.

Date
Item Post
Ref.
Debit
Credit Balance
Debit Credit

Dec 31
H. Blake Capital
800

H. Blake Withdrawal 800
Close Withdrawals to H. Blake Capital

SE6: Show the effects of the transactions in SE2, SE3, SE4, and SE5 by entering beginning balances in appropriate T accounts and recording the transactions. Assume that the H. Blake, Capital account has a beginning balance of $1,300.

Combined effect of H Blake's capital in Owner's Equity
Capital-Bal $1,300
Less: Drawing $800
Other expenses $500
Add: Retained Earning $2,200
Total Owner's equity & Retained earning $2,700

Patient Service Revenue
Closing 3,400
Beg. Bal 3,400

Laboratory Revenue
Closing 1,800
Beg. Bal 1,800

Rent Expense
Beg. Bal 1,400
Closing 1,400

Wages Expense
Beg. Bal 1,100
Closing 1,100

Other Expenses
Beg. Bal 500
Closing 500

Retained Earnings
Dividend 0
Beg. Bal 0

Closing Net income 2,200

H. Blake, Capital Account
Withdrawal 800
Beg. Bal 1,300

H. Blake, Withdrawal Account
Beg. Bal 800
Capital 800

Income summary
Expenses: Revenues:
Wages $1,100 Patent Revenue $3,400
Rent Expense $1,400 Lab Revenue $1,800
Other Expenses $500
Closing-Retained earning $2,200
$5,200 $5,200

Combined effect of H Blake's capital in Owner's Equity
Capital-Bal $1,300
Less: Withdrawals $800
$500
Add: Retained Earning $2,200
Total Owner's equity & Retained earning $2,700

SE7: Below, indicated by letters, are the adjusting entries at the end of March. Prepare the required reversing entry in journal form.

Account Name Debit Credit
Prepaid Insurance
Accumulated Depreciation, Office Equipment
Salaries Expense
Insurance Expense
Depreciation Expense, Office Equipment
Salaries Payable

(c) 360
(a) 180
(b) 1,050 (a) 180
(b) 1,050

(c) 360
1,590 1,590

SE8: Assume that prior to the adjustments in SE7, Salaries Expense had a debit balance of $1,800 and Salaries Payable had a zero balance. Prepare a T account for each of these accounts. Enter the beginning balance; post the adjustment for accrued salaries, the appropriate closing entry, and the reversing entry; and enter the transaction in the Y accounts for a payment of $480 for salaries on April 3.

Pre-Paid Insurance

Accumulated Depreciation, Office Equipment

Salaries Expense

Insurance Expense

Depreciation Expense, Office Equipment

Salaries Payable

H. Blake, Capital Account

H. Blake, Withdrawal Account

Attachments

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Dear student,
I have gone through complete work done by you.I have provided herewith ...

Solution Summary

I have provided herewith complete solution step by step to all of your questions from E1 through E8 in a separate Excel file attached herewith.Please look in to sheet 2 for more information on Reverse entries.I have also provided necessary explanatory notes and calculations where necessary.

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