Accounting 101-Online Fall 2016

EXAM #2

46 points total

The balances in the general ledger of Mind Over Batter cake shop as of January 31, 2015 before adjustments, are as follows:

Cash

$6,750

Capital stock

$6,850

Supplies

$3,900

Dividends

$3,425

Prepaid Insurance

$8,400

Service Revenue

$56,300

Equipment

$41,750

Salary Expense

$24,300

Retained Earnings

$22,925

Rent Expense

$6,000

Accumulated Depreciation

$9,950

Miscellaneous Expense

$1,500

Adjustment data are as follows: ending value of supplies on hand, January 31, $900; insurance expired (consumed) for January, $1,100;

depreciation on equipment for January, $1,600; salaries accrued, January 31, $1,650.

On the tabs indicated in this Excel file complete the following:

(a)

Prepare a ten-column work sheet for Mind Over Batter for January.

(a) End of the period worksheet here

25 points

TRIAL BALANCE

ADJUSTMENTS

ADJUSTED TRIAL BALANCE

INCOME STATEMENT

BALANCE SHEET

ACCOUNT TITLE

DR

CR

DR

CR

DR

CR

DR

CR

DR

CR

Cash

$4,250

$4,250

$4,250

TOTALS

$4,250

$-

$-

$-

$4,250

$-

$-

$-

$4,250

$-

Hint: based off of the adjustment information on Instructions tab, you will add four (4) new accounts as a result of the adjusting entries.

(b) Journal entries			15 points
	JOURNAL
Date	Account Description	Debit	Credit
ADJUSTING ENTRIES
CLOSING ENTRIES

(b) On the basis of the work sheet in (a), journalize the adjusting journal entries and the closing entries as of January 31, 2015.