E4-12

a) Reversing entries
Date Account Titles and Explanations
Feb 1 Cash
Equipment
(To reverse wrong entry)
1 Service Revenue
Cash
(To reverse wrong entry)
1 Accounts Payable
Equipment
(To reverse wrong entry)
Correcting entry
Date Account Titles and Explanations
Feb 1 Salaries and Wages Exp.
Cash
(To correct entry)
1 Account Receivable
Service Revenue
(To correct entry)
1 Equipment
Account Payable
(To correct entry)
E4-9
a) OKABE COMPANY
Income Statement
For the Month Ended July 31,2017
Revenue
Service Revenue
Rent Revenue
Total Revenue
Expense
Depreciation Exp.

Salaries and Wages Exp.

Utilities Exp.
Total Expense
Net Loss

b) OKABE COMPANY
Balance Sheet
July 31,2017
Assets
Cash
Account
Receivable
 Equipment
Less: Accumulated Depriciation-Equip
Total Assets
Liabilities and Owner's Equity
Liabilities
Accounts Payable
Unearned Rent Revenue
Total Liabilities
Owner's Equity

Owner's Capital

Total Liabilities and Owner's Equity

E4-7 a)
GENERAL JOURNAL
Date Account Titles and Explanations
Closing Entries
June 30 Service Revenue
Income Summary
(To close revenue account)
30 Income Summary
Salaries and Wages Exp.
Miscellaneous Exp.
Supplies Expense
(To close expense account)
30 Income Summary
Owner's Capital
(To close net income to capital)
30 Owner's Capital
Owner's Drawing
(To close drawings to capital)
b)
VICTORIA LEE COMPANY
Post-Closing Trial Balance
June 30,2017

Cash
Account Receivable
Supplies
Account Payable
Unearned Service Revenue
Salaries and Wages Payable
Owner's Capital
 BE4-4
GENERAL JOURNAL
Date Account Titles and Explanations
Closing Entries
December 31 Service Revenue

31 Income Summary

31 Income Summary

31 Owner's Capital

BE4-9
Correcting entry
Date Account Titles and Explanations
1 Account Receivable
Cash
(To correct entry)
2 Supplies
Account Payable
 b) Correcting entry
Debit Credit Date
700 Feb 1
700

100 1
100

670
670 1

Debit Credit
700
700

1,000
1,000

760
760

OKABE COMPANY
Owner's Equity Statement
1,2017 For the Month Ended July 31,2017
Owner's capital, July 1
$64,000 Add: Investment
6,500
70,500 Less: Drawing
Net Loss
$8,000 Owner's Capital, July 31

55,700
14,900
$78,600
$8,100

$9,840

8,780
 15,900
7,400 8,500
$27,120

$4,220
1,800
$6,020

21,100

$27,120

J3
Ref. Debit Credit

400 4,300
350 4,300

350 3,416
726 1,260
256
631 1,900

350 884
301 884

301 550
306 550

MPANY
Balance
7
Debit Credit
$3,712
3,904
480
1,382
160
460
6,094
 $8,096 8,096

RNAL J3
nt Titles and Explanations Ref. Debit Credit
Closing Entries
400 50,000
Income Summary 350 50,000
(To close revenue account)
350 36,000
Salaries and Wages Exp. 726 29,000
Supplies Expense 631 7,000
(To close expense account)
350 14,000
Owner's Capital 301 14,000
(To close net income to capital)
301 2,000
Owner's Drawing 306 2,000
(To close drawings to capital)

Debit Credit
870
870

360
360
 Correcting entry
Account Titles and Explanations Debit Credit
Salaries and Wages Exp. 700
Equipment 700
(To correct entry)
Account Receivable 1,000
Service Revenue 900
Cash 100
(To correct entry)
Equipment 90
Account Payable 90
(To correct entry)

OKABE COMPANY
Owner's Equity Statement
For the Month Ended July 31,2017
$ -0-
$45,200
$45,200
16,000
8,100
$21,100
 Worksheet
Trial Balance Adjustments Adjusted Trial Balance Income Statement
Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Dr.
Cash 15,200 15,200
Supplies 2,500 (a) 1,500 1,000
Prepaid Insurance 600 (b) 50 550
Equipment 5,000 5,000
Notes Payable 5,000 5,000
Account Payable 2,500 2,500
Unearned Revenue 1,200 (d) 400 800
Owner's Capital 10,000 10,000
Owner's Drawings 500 500
Service Revenue 10,000 (d) 400 10,600
(e) 200
Salaries and Wages Exp. 4,000 (g) 1200 5,200 5,200
Rent Exp. 900 900 900
Totals 28,700 28,700

Supplies Expense (a) 1,500 1,500 1,500

Insurance Expense (b) 50 50 50
Depreciation Expense (c) 40 40 40
Accum. Depreciation - Equipment (c) 40 40
Account Receivable (e) 200 200
Interest Expense (f) 50 50 50
Interest Payable (f) 50 50
Salaries and Wages Payable (g) 1200 1,200
Totals 3,440 3,440 30,190 30,190 7,740

Net Income 2,860

Totals 10,600
Income Statement Balance sheet
Cr. Dr. Cr.
15,200

10,600

10,600

2,860
10,600