1. The trial balance and adjustments columns of the work sheet of Long Pond Business Systems, Co., at January 31, 2011, follow:

Requirements

R1. Compute the adjusted balance for each account that must be closed.

R2. Journalize the required closing entries at January 31, 2011.

R3. How much was Long Pond’s net income or net loss?

Transcribed Image Text:

LONG POND BUSINESS SYSTEMS CO. Work Sheet Month Ended January 31, 2011 Account Cash Accounts receivable Inventory Supplies Equipment Accumulated depreciation Accounts payable Salary payable Note payable, long-term Common stock Retained earnings Dividends Sales revenue Sales discounts Cost of goods sold Selling expense General expense Interest expense Total Trial Balance Debit 2,100 8,500 36,100 13,000 42,400 45,000 2,000 111,600 21,000 10,500 Credit 11,200 9,300 7,500 6,000 27,900 233,000 2,700 294,900 294,900 Adjustments Debit (a) 1,500 (b) 4,200 (c) 5,300 (e) 1,200 (c) 2,600 (d) 2,000 16,800 Credit (b) 4,200 (c) 7,900 (d) 2,000 (e) 1,200 (a) 1,500 16,800 LONG POND BUSINESS SYSTEMS CO. Work Sheet Month Ended January 31, 2011 Account Cash Accounts receivable Inventory Supplies Equipment Accumulated depreciation Accounts payable Salary payable Note payable, long-term Common stock Retained earnings Dividends Sales revenue Sales discounts Cost of goods sold Selling expense General expense Interest expense Total Trial Balance Debit 2,100 8,500 36,100 13,000 42,400 45,000 2,000 111,600 21,000 10,500 Credit 11,200 9,300 7,500 6,000 27,900 233,000 2,700 294,900 294,900 Adjustments Debit (a) 1,500 (b) 4,200 (c) 5,300 (e) 1,200 (c) 2,600 (d) 2,000 16,800 Credit (b) 4,200 (c) 7,900 (d) 2,000 (e) 1,200 (a) 1,500 16,800

Answer rating: 100% (QA)

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