Page 196 - Accounting Principles (A Business Perspective)

4. Completing the accounting cycle

23 Paid miscellaneous expenses for June, USD 600.
28 Paid salaries of USD 28,000 for June.

• Depreciation expense on the buildings for June is USD 800.
• Depreciation expense on the trucks for June is USD 400.
• Accrued salaries at June 30 are USD 4,000.
• A physical count showed USD 12,000 of supplies on hand on June 30.
• The prepaid insurance balance of USD 4,800 applies to a two-year period beginning 2010 June 1.
• The prepaid rent of USD 12,000 applies to a one-year period beginning 2010 June 1.
• Performed USD 12,000 of delivery services for customers as of June 30 that will not be billed to those

customers until July.
a. Open three-column ledger accounts for the accounts listed in the chart of accounts.
b. Enter the 2010 May 31, account balances in the accounts.
c. Journalize the transactions for June 2010.
d. Post the June journal entries and include cross-references (assume all journal entries appear on page 10 of the
journal).
e. Prepare a 12-column work sheet as of 2010 June 30.
f. Prepare an income statement, a statement of retained earnings, and a classified balance sheet.
g. Prepare and post the adjusting entries (assume they appear on page 11 of the general journal).

h. Prepare and post the closing entries (assume they appear on page 12 of the general journal).
i. Prepare a post-closing trial balance.

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