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HW 4
HW 4
BTA111
Prof. Wu
Exercise Chapter Four
1) Okabe Company ended its fiscal year on July 31, 2019. The company is adjusted trial balance as of the end
of its fiscal year is shown below.
Okabe Company
Adjusted Trial Balance
July 31,2019
No. Account Titles Debit Credit
101 Cash $9,840
112 Accounts Receivable $8,780
157 Equipment $15,900
158 Accumulated Depreciation-Equipment $7,400
201 Accounts Payable $4,220
208 Unearned Rent Revenue $1,800
301 Owner’s Capital $45,200
306 Owner’s Drawings $16,000
400 Service Revenue $64,000
429 Rent Revenue $6,500
711 Depreciation Expenses $8,000
726 Salaries and Wage Expense $55,700
732 Utilities Expense $14,900
Instructions
(Note: $5,000 of the notes payable become due in 2020.) D. Thao did not make any additional investments in
the business during the year.
Thao Company
Worksheet for the Year Ended December 31, 2019
Adjusted Account Trial Balance
No. Account Titles Debit Credit
101 Cash $5,300
112 Accounts Receivable $10,800
126 Supplies $1,500
130 Prepaid Insurance $2,000
157 Equipment $27,000
158 Accumulated Depreciation-Equipment $5,600
200 Notes Payable $15,000
201 Accounts Payable $6,100
212 Salaries & Wages Payable $2,400
230 Interest Payable $600
301 Owner’s Capital $13,000
306 Owner’s Drawings $7,000
400 Service Revenue $60,000
610 Advertising Expense $8,400
631 Supplies Expense $4,000
711 Depreciation Expense $5,600
722 Insurance Expense $3,500
726 Salaries & Wages Expense $28,000
905 Interest Expense $600
TOTAL $103,700 $103,700
a) Income Statement
Thao Company
Income Statement
For Year Ended December 31, 2019
Revenues
Service Revenues $61,000
Expenses
Salaries & Wages Expense $28,000
Advertising Expense $8,400
Supplies Expense $4,000
Depreciation Expense $5,600
Insurance Expense $3,500
Interest Expense $600
Total Expenses $50,100
Net Income $10,900
Owner’s Equity Statement
Thao Company
Owner’s Equity Statement
For Year Ended December 31, 2019
Owner’s Capital at beginning $13,000
Add: Net Income $10,900
$23,900
Less: Drawings $7,000
Owner’s Capital Dec. 31, 2019 $16,900
Balance Sheet
Thao Company
Balance Sheet
For Year Ended December 31, 2019
Assets
Current Assets
Cash $5,300
Accounts Receivable $10,800
Supplies $1,500
Prepaid Insurance $2,000
Total Current Assets $9,600
Property Plant & Equipment
Equipment $27,000
Less: Accumulated Depreciation- Equipment $5,600 $21,400
Total Assets $41,000
b) Closing Entries