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Financial Accounting Completing the Accounting Cycle

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					                            Supplemental Instruction Handouts
                           Financial Accounting
                                    Chapter 5:
                          Completing the Accounting Cycle
                             and Classifying Accounts

The following adjusted trial balance is for Burns Consulting for the year ended December 31, 2012.

Accounts Payable                                             $4,500
Accounts Receivable                                          $3,500
Accumulated Depreciation, Building                           $10,500
Accumulated Depreciation, Computer Equipment                 $35,500
Advertising Expense                                          $2,500
Bonds Payable                                                $50,000
Building                                                     $210,000
Cash                                                         $7,800
Computer Equipment                                           $106,500
Consulting Fees Earned                                       $217,900
Copyright                                                    $9,500
Depreciation Expense – Building                              $1,500
Depreciation Expense – Computer Equipment                    $7,100
                             st
J. Burns, Capital, January 1                                 $110,000
J. Burns, Withdrawals                                        $35,000
Income Summary                                                  ?
Insurance Expense                                            $2,200
Interest Earned                                              $1,500
Interest Expense                                             $1,200
Interest Payable                                             $600
Land                                                         $25,000
Land held for future development                             $25,000
Note Payable due – 2013                                      $10,000
Note Payable due – 2014                                      $75,000
Prepaid Insurance                                            $200
Prepaid Rent                                                 $700
Rent Earned                                                  $10,200
Rent Expense                                                 $7,700
Salaries Expense                                             $85,000
Supplies                                                     $500
Supplies Expense                                             $900
Telephone Expense                                            $400
Unearned Consulting Fees                                     $6,500

Required:

    A) Prepare the necessary closing entries
    B) Prepare a classified balance sheet as of December 31, 2012.


                  Learning Assistance Centre     www.rrc.mb.ca/lac
    These questions are compiled by Mike Reimer for the Learning Assistance Centre.

				
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