Set up T-accounts for only those accounts affected by the adjusting and closing entries in Exercise 4-1.
Question:
Set up T-accounts for only those accounts affected by the adjusting and closing entries in Exercise 4-1. Post the adjusting and closing entries from Exercise 4-2 to the accounts, identifying adjustment amounts as Adj., closing amounts as Clo., and balances as Bal. Double underline the accounts with zero balances after you close them and show the ending balance in each account.
In Exercise 4-1
Additional information at September 30, 2014:
a. The business had sales that were not recorded yet in the amount of $840. It must accrue this service revenue.
b. Equipment Amortization in the amount of $260 needs to be recorded.
c. The business needs to accrue salary expense of $2,100 for work done but not yet recorded.
d. Prepaid rent used in the amount of $1,200.
e. Supplies worth $3,200 were used up during the period.
Required
Complete the Brighter Testing Services work sheet for September 2014. What was net income for the month ended September 30, 2014?
Step by Step Answer:
Accounting Volume 1
ISBN: 978-0132690096
9th Canadian edition
Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood