《financial Accouning, 9e财务会计 Warren》ch04.pptVIP

NetSolutionsIncome StatementFor Two Months Ended December 31, 2005 Fees earned $16,840 Rent revenue 120  Total revenues $16,960 Expenses: Wages expense $ 4,525 Supplies expense 2,040 Rent expense 1,600 Utilities expense 985 Insurance expense 100 Depreciation expense 50 Miscellaneous expense 455 Total expenses 9,755 Net income $ 7,205 NetSolutionsStatement of Owner’s EquityFor the Two Months Ended December 31, 2005 Chris Clark, Capital, November 1, 2005 $ 0 Investment on November 1, 2005 $25,000 Net income for November and December 7,205 $32,205 Less withdrawals 4,000 Increase in owner’s equity 28,205 Chris Clark, Capital, December 31, 2005 $28,205 NetSolutionsBalance SheetDecember 31, 2005 The Closing Process Post-closing Trial Balance Cash 2,065 Accounts Receivable 2,220 e 500 Supplies 2,000 a 1,240 Prepaid Insurance 2,400 b 100 Land 20,000 Office Equipment 1,800 Accounts Payable 900 Unearned Rent 360 c 120 Chris Clark, Capital 25,000 Chris Clark, Drawing 4,000 Fees Earned 16,340 e 500 Wages Expense 4,275 d 250 Rent Expense 1,600 Utilities Expense 985 Supplies Expense 800 a 1,240 Miscellaneous Expense 455 42,600 42,600 Account Title Debit Credit Debit Credit Debit Credit Adjusted Trial Balance Adjustments Trial Balance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Insurance Expense b 100 Rent Revenue c 120 Wages Payable d 250 Depreciation Expense f 50 Accum. Depreciation f 50 2,260 2,260 33 Cash 2,065 2,065 Accounts Receivable 2,220 e 500 2,720 Supplies 2,000 a 1,240 760 Prepaid Insurance 2,400 b 100 2,300 Land 20,000 20,000 Office Equipment 1,800 1,800 Accounts Payable 900 900 Unearned Rent 360 c 120 240 Chris Clark, Capital 25,000 25,000 Chris Clark, Drawing 4,000 4,000 Fees Earned 16,340 e 500 16,840 Wages Expense 4,275 d 250 4,525 Rent Expense 1,600 1,600 Utilities Expense 985 985