Hedkandi Hair Salon - Fall 2009 Chapter 4
Chapter 4 – Assignment
BUS 202 - Financial Accounting
In groups of three, the following tasks need to be completed for HedKandi
Hair Salon at the end of August.
A. Make the adjusting entries for August 2008 in the general journal.
B. Post the adjusting entries into the general ledger.
C. Prepare an adjusted trial balance for August.
D. Prepare the August financial statements.
The financial statements must consist of an income statement,
statement of retained earnings, and balance sheet in good form.
The balances in the adjusted trial balance must be automatically
updated by changes in the general ledger.
The balances in the financial statements should be automatically
updated by changes in the adjusted trial balance. (Hint: Retained
earnings on the balance sheet must be calculated.)
E. Submit one copy for the group at the beginning of class and one copy
each to e-portfolio.
August adjustments:
1 The clerk, Butti, counts the supplies at the end of August and
finds AED 13,790 of supplies on hand.
2 Depreciation expense for the month of August is AED 2,500 .
3 The company insurance was purchased on April 1, 2009 and provides
insurance coverage for one year.
4 The utility bill for August has been received but not entered into the
accounting records. The amount is AED 6,764.
5 At the end of August AED 19,870 of salaries are due to the employees,
but will not be paid until September 2nd.
6 AED 8,250 of the unearned revenue balance has been earned by the end
August.
7 Make the required adjustment for the rent paid on 2 August.
8 Make the required adjustment for the interest on the loan taken out on 15 August.
Note: the loan payable is a long-term liability
Hedkandi Hair Salon - Fall 2009 Chapter 4
Preliminary Trial Balance
31 August 2009
Account Dr Cr
Cash 68,608
Accounts receivable 6,339
Supplies 48,360
Prepaid insurance 21,000
Prepaid rent 84,000
Equipment 153,300
Accumulated depreciation 87,500
Accounts payable 47,332
Salaries payable 0
Unearned revenue 12,858
Loan payable 50,000
Utilities payable 0
Interest payable 0
Common stock 55,000
Retained earnings 8,797
Service revenue 474,517
Advertising expense 43,652
Depreciation expense 17,500
Insurance expense 8,500
Rent expense 98,000
Salaries expense 97,935
Supplies expense 45,973
Utilities expense 42,837
Interest expense 0
736,004 736,004
General Journal 3
Hedkandi Hair Salon - Fall 2009 Chapter 4 29-Nov-11
General Journal
Name:
ID #:
Date Account Dr Cr
350,750 350,750
1-Aug Cash 25,000
Common Stock 25,000
2-Aug Prepaid Rent 84,000
Cash 84,000
7-Aug Equipment 8,300
Cash 4,900
Accounts Payable 3,400
10-Aug Accounts Receivable 2,405
Service Revenue 2,405
15-Aug Cash 50,000
Loan Payable 50,000
15-Aug Salaries Expense 32,500
Cash 32,500
18-Aug Cash 47,950
Service Revenue 47,950
20-Aug Advertising Expense 7,860
Cash 7,860
21-Aug Cash 1,850
Accounts Receivable 1,850
24-Aug Accounts Payable 5,780
Cash 5,780
25-Aug Cash 7,425
Unearned Revenue 7,425
27-Aug Supplies 34,785
Accounts Payable 34,785
30-Aug Cash 31,542
Services Revenue 31,542
General Journal 4
Hedkandi Hair Salon - Fall 2009 Chapter 4 29-Nov-11
General Journal
Name:
ID #:
Date Account Dr Cr
350,750 350,750
31-Aug Retained Earnings 11,353
Cash 11,353
Hedkandi Hair Salon - Fall 2009 Chapter 4 29-Nov-11 5
General Ledger
Name:
ID#:
Cash Accounts Receivable
31-Aug 51,234 2-Aug 84,000 31-Aug 5,784 21-Aug 1,850
1-Aug 25,000 7-Aug 4,900 10-Aug 2,405
15-Aug 50,000 15-Aug 32,500
18-Aug 47,950 20-Aug 7,860
21-Aug 1,850 24-Aug 5,780
25-Aug 7,425 31-Aug 11,353 Balance 6,339
30-Aug 31,542
Prepaid Insurance
31-Aug 21,000
Balance 68,608
Supplies
31-Aug 13,575 Adj 0 Balance 21,000
27-Aug 34,785
Prepaid Rent
31-Aug 0
Balance 48,360 2-Aug 84,000
Equipment
31-Aug 145,000 Balance 84,000
7-Aug 8,300
Accumulated Depreciation
31-Aug 87,500
Balance 153,300
Salaries Payable
31-Aug 0 Balance 87,500
Accounts Payable
Balance 0 24-Aug 5,780 31-Aug 14,927
7-Aug 3,400
27-Aug 34,785
Utilities Payable
31-Aug 0
Balance 47,332
Balance 0 Unearned Revenue
31-Aug 5,433
25-Aug 7,425
Interest Payable
31-Aug 0
Balance 12,858
Balance 0
Hedkandi Hair Salon - Fall 2009 Chapter 4 29-Nov-11 6
General Ledger
Name:
ID#:
Common Stock Loan Payable
31-Aug 30,000 31-Aug 0
1-Aug 25,000 15-Aug 50,000
Balance 50,000
Balance 55,000
Retained Earnings
Advertising Expense 31-Aug 11,353 31-Aug 20,150
31-Aug 35,792
20-Aug 7,860
Balance 8,797
Balance 43,652
Service Revenue
Insurance Expense 31-Aug 392,620
31-Aug 8,500 10-Aug 2,405
18-Aug 47,950
30-Aug 31,542
Balance 8,500 Balance 474,517
Salaries Expense Depreciation Expense
31-Aug 65,435 31-Aug 17,500
15-Aug 32,500
Balance 97,935 Balance 17,500
Utilities Expense
31-Aug 42,837 Rent Expense
31-Aug 98,000
Balance 42,837
Balance 98,000
Interest Expense
31-Aug 0
Supplies Expense
31-Aug 45,973
Balance 0
Balance 45,973
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