Accounting 5 (Fall 2024): Adjustment Entries, Financial Statements

This accounting assignment solution encompasses a comprehensive set of accounting tasks, including the creation of adjustment entries, closing entries, an income statement, a statement of equity, and a balance sheet. The adjustment entries account for various expenses and revenues, such as interest expense, supplies expense, insurance expense, and depreciation. The closing entries transfer revenue and expense account balances to the income summary and retained earnings. The income statement presents revenue and expenses to determine net profit. The statement of equity details the changes in owner's equity, and the balance sheet provides a snapshot of assets, liabilities, and equity. The assignment demonstrates a complete accounting cycle and preparation of financial statements, providing a clear understanding of financial reporting.

ACCOUNTING 1
ACCOUNTING

ACCOUNTING 2
Adjustment entries:
Account
No. Account Name Debit Credit
690 Interest expense 16,400.00
202 Interest payable 16,400.00
(to record the interest
expense)
680 Supplies expense 1,230.00
115 Supplies 1,230.00
(to record the supplies
expense)

ACCOUNTING 3
650 Insurance expense 2,624.00
120 Prepaid insurance 2,624.00
(to record the insurance
expense)
615 Depreciation expense 8,000.00
137
Accumulated depreciation-
office furniture 8,000.00
(to record the depreciation
expense)
620 Depreciation expense 2,800.00
141
Accumulated depreciation-
office equipment 2,800.00
(to record the depreciation
expense)
625 Depreciation expense 900.00
146
Accumulated depreciation-
store equipment 900.00
(to record the depreciation
expense)
640 Depreciation expense 1,200.00
171
Accumulated depreciation-
automobile 1,200.00
(to record the depreciation
expense)
207 Unearned revenue 10,250.00
401 Revenue 10,250.00
(to record the service
revenue)
Closing entries:
Closing entries
Account Name Debit Credit
Revenue 1,74,250.00
Income summary 1,74,250.00

ACCOUNTING 4
Income summary 1,09,434.00
Advertising Expense 1,300.00
Automobile Expense 5,775.00
Depreciation Expense -
Furniture 16,000.00
Depreciation Expense -
Equipment 18,800.00
Depreciation Expense - Store
Equipment 12,900.00
Depreciation Expense -
Automobile 17,200.00
Insurance Expense 3,724.00
Maintenance Expense 4,550.00
Miscellaneous Expense 1,155.00
Rent Expense 1,600.00
Supplies Expense 4,430.00
Utilities Expense 2,400.00
Interest Expense 19,600.00
Income summary 64,816.00
Retained earnings 64,816.00
Income statement
Revenue 1,74,250.00
Less: expenses:
Advertising Expense 1,300.00
Automobile Expense 5,775.00
Depreciation Expense -
Furniture 16,000.00
Depreciation Expense -
Equipment 18,800.00
Depreciation Expense -
Store Equipment 12,900.00
Depreciation Expense -
Automobile 17,200.00
Insurance Expense 3,724.00
Maintenance Expense 4,550.00
Miscellaneous Expense 1,155.00

ACCOUNTING 5
Rent Expense 1,600.00
Supplies Expense 4,430.00
Utilities Expense 2,400.00
Interest Expense 19,600.00 1,09,434.00
Net profit 64,816.00
Statement of equity
Opening Capital 1,09,180.00
Add: net profit 64,816.00
Less: drawings 48,000.00
Closing Capital 1,25,996.00
Balance sheet
Assets (Amounts in $)
Cash at Bank 63,960.00
Accounts Receivable 21,320.00
Supplies 410.00
Prepaid Insurance 656.00
Office Furniture 41,000.00
Acc. Depreciation. - Furniture 16,000.00
Office Equipment 82,000.00
Acc. Depreciation - Equipment 18,800.00
Store Equipment 1,23,000.00
Acc. Depreciation - Equipment 12,900.00
Automobile 1,64,000.00

ACCOUNTING 6
Acc. Depreciation - Automobile 17,200.00
Total Assets 4,31,446.00
Accounts Payable 42,640.00
Interest Payable 80,360.00
Unearned revenue 10,250.00
Loan Payable 8,200.00
Mortgage Payable 1,64,000.00
Paul's Capital 1,25,996.00
Total Liabilities and equity 4,31,446.00