Addams & Family Inc.
General Journal
As of April 1, 2002
Particulars Debit Credit
April
4 Cash 10,000
Accounts Receivable 1,500
Supplies 1,250
Office Equipment 7,500
Mr. Addams, Capital 20,250
To record investment of assets.
4 Prepaid Rent 4,500
Cash 4,500
To record paid three months rent expense.
4 Prepaid Insurance 1,800
Cash 1,800
To record insurance expense.
6 Cash 3,000
Unearned Revenue 3,000
To record advance payment for
cash.
7 Office Furniture 1,800
Accounts Payable 1,800
To record purchased furniture on account.
8 Cash 800
Accounts Receivable 800
To record paid service on account.
11 Advertisement Expense 120
Cash 120
To record newspaper advertisement
for cash.
12 Accounts Payable 800
Cash 800
To record paid debt incurred on April 7.
15 Acounts Receivable 2,250
Service Revenue 2,250
To record service rendered on
account for the period April 4-15.
15 Salary Expense 400
Cash 400
To record part-time salary for two weeks.
15 Cash 3,175
Service Revenue 3,175
To record fees earned for the period
April 4-15.
18 Supplies 750
Cash 750
To record supplies for cash.
22 Accounts Receivable 1,100
Service Revenue 1,100
To record service rendered on
account for the period April 18-22.
22 Cash 1,850
Service Revenue 1,850
To record fees earned for the period
April 18-22.
25 Cash 1,600
Accounts Receivable 1,600
To record service on account.
27 Salary Expense 400
Cash 400
To record part-time salary for two weeks.
28 Utilities Expense 130
Cash 130
To record paid telephone bill for April.
29 Utilities Expense 200
Cash 200
To record paid electric bill for April.
29 Cash 2,050
Service Revenue 2,050
To record fees earned for the period
April 25-29.
29 Accounts Receivable 1,000
Service Revenue 1,000
To record service rendered on
account for the period April 25-29.
29 Salary Expense 4,500
Cash 4,500
To record John's salary.
Addams & Family Inc.
Adjusting Journal Entries
As of April 1, 2002
Particulars Debit Credit
April
6 Unearned Revenue 2,000
Service Revenue 2,000
29 Supplies Expense 980
Supplies 980
30 Salaries Expense 20
Accrued Salaries Payable 20
Insurance Expense 150
Prepaid Insurance 150
Rent Expense 1,500
Prepaid Rent 1,500
Depreciation Expense (Equipment) 500
Accumulated Depreciation 500
Addams & Family Inc.
T Accounts
As of April 1, 2002
Cash Accounts Receivable
Debit Credit Debit Credit
10,000 4,500 1,500 800
3,000 1,800 2,250 1,600
800 120 1,100
3,175 800 1,000
1,850 400 3,450
1,600 750
2,050 400
130 Supplies
4,500 Debit Credit
200 1,250 980
8,875 750
1,020
Mr. Addams, Capital
Debit Credit Office Equipment
20,250 Debit Credit
7,500
Prepaid Rent
Debit Credit Office Furniture
4,500 1,500 Debit Credit
3,000 1,800
Prepaid Insurance Unearned Revenue
Debit Credit Debit Credit
1,800 150 2,000 3,000
1,650 1,000
Advertisement Expense Accounts Payable
Debit Credit Debit Credit
120 800 1,800
1,000
Utilities Expense
Debit Credit Service Revenue
200 Debit Credit
2,250
1,100
Salaries Expense 1,000
Debit Credit 3,175
4,500 2,050
400 2,000
20 1,850
400 13,425
5,320
Insurance Expense
Debit Credit
150
Supplies Expense
Debit Credit
980
Depreciation Expense
Debit Credit
500
Accumulated Depreciation
Debit Credit
500
Accrued Salaries Payable
Debit Credit
20
Rent Expense
Debit Credit
1,500
Accumulated Depreciation
Debit Credit
500
Communication Expense
Debit Credit
130
Addams & Family Inc.
Adjusted Trial Balance
As of April 1, 2002
Particulars Debit Credit
Cash 8,875
Supplies 1,020
Accounts Receivable 3,450
Prepaid Rent 3,000
Prepaid Insurance 1,650
Office Equipment 7,500
Office Furniture 1,800
Accounts Payable 1,000
Accrued Salaries Payable 20
Mr. Addams, Capital 20,250
Unearned Revenue 1,000
Service Revenue 13,425
Advertisement Expense 120
Communication Expense 130
Utilities Expense 200
Salaries Expense 5,320
Insurance Expense 150
Rent Expense 1,500
Supplies Expense 980
Depreciation Expense (equipment) 500
Accumulated Depreciation 500
TOTAL 36,195 36,195
Addams & Family Inc.
Closing Journal Entries
As of April 1, 2002
Particulars Debit Credit
Service Revenue 13,425
Income Summary 13,425
To close Revenue Accounts to Income Summary.
Income Summary 8,900
Rent Expense 1,500
Insurance Expense 150
Advertisement Expense 120
Communication Expense 130
Utilities Expense 200
Salaries Expense 5,320
Supplies Expense 980
Depreciation Expense 500
To close Expense Accounts to Income Summary
Income Summary (13,425-8,900) 4,525
Retained Earnings 4,525
To close Income Summary to Retained Earnings
Addams & Family Inc.
Post Closing Trial Balance
As of April 1, 2002
Particulars Debit Credit
Cash 8,875
Supplies 1,020
Accounts Receivable 3,450
Prepaid Rent 3,000
Prepaid Insurance 1,650
Office Equipment 7,500
Office Furniture 1,800
Accounts Payable 1,000
Accrued Salaries Payable 20
Mr. Addams, Capital 20,250
Unearned Revenue 1,000
Accumulated Depreciation 500
Retained Earnings 4,525
TOTAL 27,295 27,295
Addams & Family Inc.
Statement of Profit and Loss
As of April 1, 2002
Particulars Debit Credit
Unearned Revenue 1,000
Service Revenue 13,425
Advertisement Expense 120
Communication Expense 130
Utilities Expense 200
Salaries Expense 5,320
Insurance Expense 150
Rent Expense 1,500
Supplies Expense 980
Depreciation Expense (equipment) 500
Sub-total 8,900 14,425
5,525
TOTAL 14,425 14,425
Addams & Family Inc.
Statement of Retained Earnings
As of April 1, 2002
Retained Earnings, Beginning
Add: Net Income $ 4,525.00
Less: Dividends
Retained Earnings, Ending $ 4,525.00
Addams & Family Inc.
Statement of Financial Position
As of April 1, 2002
ASSETS:
Cash $ 8,875.00
Supplies 1,020.00
Less:
Total Current Assets $ 9,895.00
Carrying Value $ 8,800.00
Total Assets $ 26,795.00
LIABILITIES:
Accounts Payable $ 1,000.00
Accrued Salaries Payable 20.00
Unearned Revenue 1,000.00
Total Liabilities $ 2,020.00
OWNER'S EQUITY
Mr. Addams,Capital $ 20,250.00
Retained Earnings 4,525.00
Total Owner's Equity $ 24,775.00
Total Liabilities & Owner's Equity $ 26,795.00
mily Inc.
ncial Position
, 2002
Office Equipment $ 7,500.00
Office Furniture 1,800.00
Accumulated Depreciation -500.00
$ 8,800.00
