Munoz Company

Chapter 4: E4-1 Page 173

The adjustments columns of the work sheet for Munoz Company are shown below. Prepare adjusting entries from
a work sheet and extend balance to work sheet columns.

(SO 1) SEE ATTACHMENT PAGE 141
Adjustments

Account Titles Debit Credit
Accounts Receivable 600
Prepaid Insurance 400
Accumulated Depreciation 900
Salaries Payable 500
Service Revenue 600
Salaries Expense 500
Insurance Expense 400
Depreciation Expense 900
2,400 2,400

Chapter 4: E4-8 PAGE 174

Selected accounts for Roth Salon are presented below. All June 30 postings are from closing

Salaries Expense
6/10 3,200 6/30 8,800
6/28 5,600
Supplies Expense
6/12 600 6/30 1,300
6/24 700
Service Revenue
6/30 16,100 6/15 7,700
6/24 8,400
Rent Expense
6/1 3,000 6/30 3,000
Dividends
6/15 2,500 6/30 2,500
Retained Earnings
6/30 2,500 6/30 3,000
Bal. 500

Prepare closing entries.

(SO 2) SEE PAGE IN ATTACHMENT 148

Chapter 4: P4-1A PAGE 175

P4-1A The trial balance columns of the work sheet for Undercover Roofing Inc. at March 31,
2006, are as follows.

UNDERCOVER ROOFING INC.
Work Sheet
For the Month Ended March 31, 2006
Trial Balance
Account Titles Dr. Cr.
Cash 2,500
Accounts Receivable 1,800
Roofing Supplies 1,100
Equipment 6,000
Accumulated Depreciation?Equipment 1,200
Accounts Payable 1,400
Unearned Revenue 300
Common Stock 5,000
Retained Earnings 2,000
Dividends 600
Service Revenue 3,000
Salaries Expense 700
Miscellaneous Expense 200
12,900 12,900

Other data:

1. A physical count reveals only $140 of roofing supplies on hand.
2. Depreciation for March is $200.
3. Unearned revenue amounted to $130 after adjustment on March 31.
4. Accrued salaries are $350.

Instructions

(a) Enter the trial balance on a work sheet and complete the work sheet.
(b) Prepare an income statement and a retained earnings statement for the month of March and
a classified balance sheet at March 31. No additional issuances of stock occured in March.
(c) Journalize the adjusting entries from the adjustments columns of the work sheet.
(d) Journalize the closing entries from the financial statement columns of the work sheet.

Prepare a work sheet, financial statements, and adjusting and closing entries.
(SO (a) Adjusted trial balance
$13,450
(b) Net income $9,760
Total assets $9,040