1 Analyzing transactions and events.

2 Journalizing transactions and events.

3 Posting the journal entries.
4 Preparing the unadjusted trial balance.
5 Journalizing and posting adjusting entries.
6 Preparing the adjusted trial balance.
7 Preparing the financial statements.
8 Journalizing and posting closing entries.
9 Preparing the post-closing trial balance.
Part 1
December 31, 2015
Dylan Delivery Company
Worksheet
For Month Ended Dec 31,2015
Unadjusted Trial
Adjustments Adjusted Trial Balance
Balance
No Account Title Debit Credit Debit Credit Debit
Cash 16,000
Account Receivable 34,000
Office supplies 5,000
Trucks 350,000
Acc. Depreciation-Trucks 80,000
Land 160,000
Account Payable 24,000
Interest Payable 5,000
Long-term notes payable 100,000
S. Dylan, Capital 307,000
S. Dylan, Withdrawals 34,000
Delivery fees earned 263,000
Depreciation expense-Truc 40,000
Salaries expense 110,000
Office supplies expense 15,000
Interest expense 5,000
Repair expense-Trucks 10,000
Total 779,000 779,000 - - -
Net income - - -

Part 2 Closing entries Date Account Title PR Db

(1) Delivery fees earned 401 -
Income Summary 901
To close the revenue account.
(2) Income Summary 901 -
Depreciation expens 611
Salaries expense 601
Office supplies expe 652
Interest expense 633
Repair expense-Truc 684
To close the expense accounts.
(3) Income Summary 901 -
R. Cruz, Capital 301
To close Income Summary account.
(4) R. Cruz, Capital 301 34,000
R. Cruz, Withdrawal 302
To close the withdrawals account.
Adjusted Trial Balance Income Statement Balance Sheet & SOE

Credit Debit Credit Debit Credit

- - - - -
- -
- - - -
- -
Cr

-
-
-
-
-

34,000
Part 1
December 31, 2015
Santara Marketing Company
Worksheet
For Month Ended Dec 31,2015
Adjusted Trial Balance Closing Entry Information
No Account Title Debit Credit Debit
101 Cash 9,200
106 Accounts receivable 25,000
153 Equipment 42,000
Accumulated depreciation—
154 17,500
Equipment
183 Land 31,000
201 Accounts payable 15,000
209 Salaries payable 4,200
233 Unearned fees 3,600
301 T. Santara, Capital 68,500
302 T. Santara, Withdrawals 15,400
401 Marketing fees earned 80,000
Depreciation expense—
611 12,000
Equipment.
622 Salaries expense 32,500
640 Rent expense 13,000
677 Miscellaneous expense 8,700
901 Income summary

Total 188,800 188,800 -

- -

Part 2 Closing entries Account Title PR

(1) Marketing fees earned 401
Income Summary 901
To close the revenue account.
(2) Income Summary 901
Depreciation expen 611
Salaries expense 622
Rent expense 640
Miscellaneous expen 677
To close the expense accounts.
(3) Income Summary 901
T. Santara, Capital 301
To close Income Summary account.
(4) R. Cruz, Capital 301
T. Santara, Withdraw 302
To close the withdrawals account.
 Post-Closing Trial Balance
Credit Debit Credit
9,200
25,000
42,000
17,500
31,000
15,000
4,200
3,600
68,500
15,400
80,000
12,000
32,500
13,000
8,700

- 188,800 188,800
-

Db Cr
 Wilson Trucking Company
Income Statement
For Year Ended December 31, 2015
Trucking fees earned
Depreciation expense—Truck
Salaries expense
Office supplies expense
Repairs expense—Trucks
TOTAL EXPENSE

NET INCOME

Wilson Trucking Company

Statement of Owner’s Equity
For Year Ended December 31, 2015
Capital opening
Investment
Net Income
Withdrawals
Capital ending

Wilson Trucking Company

Balance Sheet
31-Dec-15
Asset
Current assets
Cash
Accounts receivable
Office supplies
Noncurrent assests
Trucks
Accumulated depreciation—
Land

Liability
Current Liability
Accounts payable
Interest payable
Noncurrent Liability
Long-term notes payable

Equity
Liability & Equity
Cash
Accounts receivable
Office supplies
Trucks
Accumulated depreciation—
Land
Accounts payable
Interest payable
Long-term notes payable
K Wilson, Capital
K Wilson, Withdrawals
Trucking fees earned
Depreciation expense—Truc
Salaries expense
Office supplies expense
Repairs expense—Trucks

Totals
-
 Current Current Current
Assets Liabilities Ratio
Case 1
Case 2
Case 3
Case 4
Case 5

Analysis: Company 1 is in the strongest liquidity position. It has about $2.47 of current assets for each $1 of
The only potential concern is that Company 1 may be carrying too much in current assets that could be better
(note that its remaining competitors’ current ratios range from 1.38 to 0.61).
$2.47 of current assets for each $1 of current liabilities.
in current assets that could be better spent on more productive assets
Account No. Account Name Account No. Account Name
101 Cash 101 Cash
106 Accounts Receivable 106 Accounts Receivable
126 Supplies 126 Supplies
128 Prepaid Insurance 108 Prepaid Insurance
167 Equipment 163 Office Equipment
173 Building 164 Drafting Equipment
183 Land 170 Building
201 Account Payable 172 Land
208 Rent payable 201 Account Payable
236 Unearned Revenue 250 Notes payable
245 Note payble 301 Capital
301 Capital 302 Withdrawals
302 Withdrawals 402 Engineering Fees Earned
403 Main revenue 601 Wages expenses
406 Other revenues 602 Equipment Rental Expense
622 Salaries expenses 603 Advertising expenses
637 Insurance expenses 604 Reparing expenses
640 Rent expense
652 Supplies expense 652 Supplies expense
655 Advertising expenses 655 Advertising expenses
679 Operating expenses 679 Operating expenses
690 Utilities expense 690 Utilities expense
ts Receivable

g Equipment

ering Fees Earned

ent Rental Expense

sing expenses

sing expenses
ng expenses
Unadjusted Entries
April 30, 2015
Date Account Title PR Db Cr
1-Apr Cash 101
Computer Equipment 167
J. Nozomi, Capital 301
Owner invested in the business.
2 Rent Expense 640
Cash 101
Paid one month’s rent.
3 Office Supplies 124
Cash 101
Acquired office supplies.
10 Prepaid Insurance 128
Cash 101
Paid 12 months’ premium in advance.
14 Salaries Expense 622
Cash 101
Paid two weeks’ salaries.
24 Cash 101
Commissions Earne 405
Collected commissions from airlines.
28 Salaries Expense 622
Cash 101
Paid two weeks’ salaries.
29 Repairs Expense 684
Cash 101
Repaired the computer.
30 Telephone Expense 688
Cash 101
Paid the telephone bill.
30 J. Nozomi, Withdrawals 302
Cash 101
Owner withdrew cash.

Dylan Delivery Company

Worksheet
For Month Ended JanApr 30,2015
Unadjusted Trial Balance Adjustments
No Account Title Debit Credit Debit
101 Cash -
106 Accounts receivable - -
124 Office supplies - -
128 Prepaid insurance - -
167 Computer equipment - -
168 Accumulated deprecia - -
209 Salaries payable - -
301 J. Nozomi, Capital - -
302 J. Nozomi, Withdrawal - -
 405 Commissions earned - -
612 Depreciation expense - -
622 Salaries expense - -
637 Insurance expense - -
640 Rent expense - -
650 Office supplies expens - -
684 Repairs expense - -
688 Telephone expense - -
901 Income Summary - -

Total - - -

Date Account Title PR Db Cr

(a) Apr 30 Insurance Expense 637
Prepaid Insurance 128
To record expired insurance
(b) 30 Office Supplies Expense 650
Office Supplies 124
To record cost of supplies used
(c) 30 Depreciation Exp—Computer Equip 612
Accumulated Depreciation—
Computer Equipment 168
To record depreciation.
(d) 30 Salaries Expense 622
Salaries Payable 209
To record accrued salaries.
(e) 30 Accounts Receivable 106
Commissions Earne 405
To record accrued commissions.

Date Account Title PR Db Cr

(1) Commissions earned 405 -
Income Summary 901 -
To close the revenue account.
(2) Income Summary 901 -
Depreciation expens 612 -
Salaries expense 622 -
Insurance expense 637 -
Rent expense 640 -
Office supplies expen 650 -
Repairs expense 684 -
Telephone expense 688 -
To close the expense accounts.
(3) Income Summary 901 -
R. Cruz, Capital 301 -
To close Income Summary account.
(4) R. Cruz, Capital 301 -
R. Cruz, Withdrawals 302 -
To close the withdrawals account.
Adjustments Adjusted Trial Balance Closing Entries
Credit Debit Credit Debit Credit
- - - - -
 Post-closing TB
Debit Credit
- - -