Chapter 4 - Illustration 4-2

1
1 Enter Trial Balance
C.R.
Byrd, Capital
10,000
C.R.
Byrd, Drawings
500
Fees Earned
10,000
Rent Expense
900
Totals
28,700
28,700
Advertising Supplies Expense
Salaries Payable
Amortization Expense
Accumulated Amortization
Totals
2
2 Enter Adjustments
(a) 1,500
(a) 1,500
(b) 50
(b) 50
Notes Payable
5,000
Accounts Payable
2,500
Unearned Fees
1,200
(c) 400
(c) 400
C.R. Byrd, Capital
10,000
(d)
200 (d) 200
C.R. Byrd, Drawings
500
Fees Earned
10,000
Rent Expense
900
Totals
28,700
28,700
Advertising Supplies Expense
(e) 25 (e) 25
Insurance Expense
Accounts Receivable
(f) 5,200 (f) 5,200
Interest Expense
Interest Payable
(g) 40 (g) 40
Salaries Expense
Salaries Payable
Amortization Expense
Accumulated Amortization
Totals
7,415
7,415
3
3 Enter Adjusted Trial Balance
19,200 1,000 550 5,000
5,000 2,500
800 10,000
500 10,600 900
1,500 50 200 25
25 5,200
5,200 40 40
(a) 1,500 (b)
50 (c) 400 (c) 400
(d) 200 (a) 1,500 (b) 50 (d)
200 (e) 25 (e) 25 (f) 5,200
(f) 5,200 (g) 40 (g)
40
Notes Payable
5,000
Accounts Payable
2,500
Unearned Fees
1,200
C.R. Byrd, Capital
10,000
C.R. Byrd, Drawings
500
Fees Earned
10,000
Rent Expense
900
Totals
28,700
28,700
Advertising Supplies Expense
Insurance Expense
Accounts Receivable
Interest Expense
Interest Payable
Salaries Expense
Salaries Payable
Amortization Expense
Accumulated Amortization
Totals
7,415
7,415
34,165
34,165
4
4 Extend Balances to Financial Statement Columns
19,200 1,000 550
5,000 5,000
2,500 800
10,000 500
10,600 900 1,500 50
200 25
25 5,200 5,200
40 40
Notes Payable
5,000
Accounts Payable
2,500
Unearned Fees
800
C.R. Byrd, Capital
10,000
C.R. Byrd, Drawings
500
Fees Earned
10,600
Rent Expense
900
Advertising Supplies Expense
1,500
Insurance Expense
50
Accounts Receivable
200
Interest Expense
25
25
Interest Payable
Salaries Expense
5,200
Salaries Payable
5,200
Amortization Expense
40
Accumulated Amortization
40
Totals
34,165
34,165
Net Income
Totals
5
5 Compute Income (Loss)
19,200 1,000 550 5,000
5,000 2,500
800
10,000 500 200
25 5,200 40
Notes Payable
5,000
Accounts Payable
2,500
Unearned Fees
800
C.R. Byrd, Capital
10,000
C.R. Byrd, Drawings
500
Fees Earned
10,600
10,600
Rent Expense
900
900
Advertising Supplies Expense
1,500
1,500
Insurance Expense
50
50
Accounts Receivable
200
25
Interest Expense
25
Interest Payable
25
Salaries Expense
5,200
5,200
Salaries Payable
5,200
40
Amortization Expense
40
Accumulated Amortization
40
Totals
34,165
34,165
7,715
10,600
26,450
23,565
Net Income
2,885
2,885
Totals
10,600
10,600
26,450
26,450