Nama : Alfian Rizal Mahendra

NIM : F120013
Kelas : B / Ekonomi Pembangunan
P4-2A The adjusted trial balance columns of the worksheet for Watson Company, Ltd. are as
follows.

Instructions
(a) Complete the worksheet by extending the balances to the fi nancial statement
columns.
(b) Prepare an income statement, a retained earnings statement, and a classifi ed
statement of fi nancial position (amounts in British pounds). (Note: £5,000 of the
notes payable become due in 2018.)
(c) Prepare the closing entries. Use J14 for the journal page.
(d) Post the closing entries. Use the three-column form of account. Income Summary is
account No. 350. (e) Prepare a post-closing trial balance.
 Answer :
(a) WATSON COMPANY, LTD.
Partial Worksheet
For the Year Ended December 31, 2017
Adjusted Income Statement Statement of
Trial Balance Financial Position
No. Account Titles Dr. Cr. Dr. Cr. Dr. Cr.
10 Cash 17,800 17,800
1
11 Accounts Receivable 14,400 14,400
2
12 Supplies 2,300 2,300
6
13 Prepaid Insurance 4,400 4,400
0
15 Equipment 46,000 46,000
7
15 Accumulated Depreciation— 18,000 18,000
8 Equipment
20 Notes Payable 20,000 20,000
0
20 Accounts Payable 8,000 8,000
1
21 Salaries and Wages Payable 2,600 2,600
2
23 Interest Payable 1,000 1,000
0
31 Share Capital—Ordinary 15,000 15,000
1
32 Retained Earnings 9,800 9,800
0
33 Dividends 12,000 12,000
2
40 Service Revenue 86,200 86,200
0
61 Advertising Expense 10,000 10,000
0
63 Supplies Expense 3,700 3,700
1
71 Depreciation Expense 6,000 6,000
1
72 Insurance Expense 4,000 4,000
2
72 Salaries and Wages Expense 39,000 39,000
6
90 Interest Expense 1,000 1,000
5
Totals 160,600 160,600 63,700 86,200 96,900 74,400

22,500 22,500
86,200 86,200 96,900 96,900

(b)
WATSON COMPANY, LTD.
Income Statement
For the Year Ended December 31, 2017
Revenues
Service Revenue £ 86,200
Expenses
Advertising Expense £ 10,000
Supplies Expense 3,700
Depreciation Expense 6,000
Insurance Expense 4,000
Salaries and Wages Expense 39,000
Interest Expense 1,000
Total Expenses 63,700
Net Income £ 22,500
 WATSON COMPANY, LTD.
Retained Earnings Statement
For the Year Ended December 31, 2017

Retained Earnings, January 1 £ 9,800

Add : Net Income 22,500
32,300
Less : Devidens 12,000
Retained Earnings, December 31 £ 20,300

WATSON COMPANY, LTD.

Statement of Financial Position
For the Year Ended December 31, 2017

Assets
Property, Plant, and Equipment
Equipment 46,000
Less : Accumulated Depreciation—Equipment 18,000 £28,000
Current Assets
Prepaid Insurance 4,400
Supplies 2,300
Accounts Receivable 14,400
Cash 17,800 £ 38,900
Total Assets £ 66,900

Equity and Liabilities

 Equity
Share Capital—Ordinary 15,000
Retained Earnings 9,800 £ 24,900
Non-Current Liabilities
Notes Payable (due after 2018) £ 15,000
Current Liabilities
Notes Payable (due in 2018) 5,000
Accounts Payable 8,000
Salaries and Wages Payable 2,600
Interest Payable 1,000 £ 16,600
£ 66,900

(c)
General Journals J14

Date General Journals Ref Debit Credit

Dec, 31 Service Revenue 400 £ 86,200
Income Summary 350 £ 86,200
31 Income Summary 350 63,700
Advertising Expense 610 £ 10,000
Supplies Expense 631 3,700
Depreciation Expense 711 6,000
Insurance Expense 722 4,000
Salaries and Wages Expense 726 39,000
Interest Expense 905 1,000
31 Income Summary 350 22,500
 Retained Earnings 320 22,500
31 Retained Earnings 320 12,000
Dividens 332 12,000

(d)

Retained Earnings
Date Explanation Ref Debit Credit Balance
Balance 9,800 9,800
Dec. 31 Closing entry J14 22,500 32,300
31 Closing entry J14 12,000 20,300

Dividends
Date Explanation Ref Debit Credit Balance
Dec. 31 Balance 12,000 12,000
31 Closing entry J14 12,000 0

Income Summary No. 350

Date Explanation Ref Debit Credit Balance

Dec, 31 Closing entry J14 86,200 86,200
31 Closing entry J14 63,700 22,500
31 Closing entry J14 22,500 0

Service Revenue No. 400

Date Explanation Ref Debit Credit Balance

Dec, 31 Balance 86,200
31 Closing Entry J14 86,200 0

Advertising Expense No. 610

Date Explanation Ref Debit Credit Balance

Dec, 31 Balance 10,000 10,000
 31 Closing Entry J14 10,000 0

Supplies Expense No. 631

Date Explanation Ref Debit Credit Balance

Dec, 31 Balance 3,700 3,700
31 Closing Entry J14 3,700 0

Depreciation Expense No. 711

Date Explanation Ref Debit Credit Balance

Dec, 31 Balance 6,000 6,000
31 Closing Entry J14 6,000 0

Insurance Expense No. 722

Date Explanation Ref Debit Credit Balance

Dec, 31 Balance 4,000 4,000
31 Closing Entry J14 4,000 0

Salaries and Wages Expense No. 726

Date Explanation Ref Debit Credit Balance

Dec, 31 Balance 39,000 39,000
31 Closing Entry J14 39,000 0

Interest Expense No. 905

Date Explanation Ref Debit Credit Balance

Dec, 31 Balance 1,000 1,000
31 Closing Entry J14 1,000 0
(e)
WATSON COMPANY, LTD.
Post-Closing Trial Balance
For the Year Ended December 31, 2017

Debit Credit
Cash £ 17,800
Accounts Receivable 14,400
Supplies 2,300
Prepaid Insurance 4,400
Equipment 46,000
Accumulated Depreciation- £ 18,000
Equipment
Notes Payable 20,000
Accounts Payable 8,000
Salaries and Wages Payable 2,600
Interest Payable 1,000
Share Capital—Ordinary 15,000
Retained Earnings 20,300
£ 84,900 £ 84,900

P4-3A The completed financial statement columns of the worksheet for Rahim Company,
Ltd. are as follows.
Instructions :
(a) Prepare an income statement, a retained earnings statement, and a classifi ed
statement of financial position (amounts in euros).
(b) Prepare the closing entries.
(c) Post the closing entries, and underline and balance the accounts. (Use T-accounts.)
Income Summary is account No. 350.
(d) Prepare a post-closing trial balance.

Answer :
(a)
 RAHIM COMPANY, LTD.
Income Statement
For the Year Ended December 31, 2017

Revenues
Service revenue €47,000
Expenses
Salaries and wages expanses €35,200
Maintenance and repairs expense 4,100
Utilities expense 4,000
Depreciation expense 3,300
Insurance expense 2,400
Total expenses €49,000
Net loss €(2,000)

RAHIM COMPANY, LTD.

Retained Earnings Statement
For the Year Ended December 31, 2017

Retained Earnings, January 1 €9,700

Less : Net loss €2,000
Dividends 4,000 €6,000
Retained Earnings, December 31 €3,700

RAHIM COMPANY, LTD.

Statement of Financial Position
December 31, 2017

Assets
Property, plant, equipment
Equipment €33,000
Less: Accumulate depreciation
Equipment €9,900 €23,100

Current assets
Prepaid insurance 600
Account receivable 7,500
Cash 6,200 14,300
Total Assets €37,400

RAHIM COMPANY, LTD.

Statement of Financial Position (Continued)
 December 31, 2017

Equity and Liabilities

Equity
Share capital—ordinary €20,000
Retained earnings 3,700
Current liabilities
Accounts payable . 10,700
Salaries and wages payable 3,000 13,700
Total equity and liabilities €37,400

(b)
General Journal
Date Account Titles Ref. Debit Credit
Dec. 31 Service Revenue 400 47,000
Income Summary 350 47,000

31 Income Summary 350 49,000

Maintenance and Repairs
Expense 622 4,100
Depreciation Expense 711 3,300
Insurance Expense 722 2,400
Salaries and Wages Expense 726 35,200
Utilities Expense 732 4,000

31 Retained Earnings 320 2,000

Income Summary 350 2,000

31 Retained Earnings 320 4,000

Dividends 332 4,000

(c)
 Retained Earnings No. 320
12/31 2,000 1/1 Bal. 9,700
12/31 4,000
12/31 Bal. 3,700

Dividends No. 332

12/31 Bal. 4,000 12/31 4,000

Income Summary No. 350

12/31 49,000 12/31 47,000
12/31 2,000
49,000 49,000

Service Revenue No. 400

12/31 47,000 12/31 Bal. 47,000

Maintenance and Repairs

Expense No. 622
12/31 Bal. 4,100 12/31 4,100

Depreciation Expense No. 711

12/31 Bal. 3,300 12/31 3,300

Insurance Expense No. 722

12/31 Bal. 2,400 12/31 2,400

Salaries and Wages Expense No. 726

12/31 Bal. 35,200 12/31 35,200

Utilities Expense No. 732

12/31 Bal. 4,000 12/31 4,000

(d)
 RAHIM COMPANY, LTD.
Post-Closing Trial Balance
December 31, 2017

Debit Credit
Cash € 6,200
Accounts Receivable 7,500
Prepaid Insurance 600
Equipment . 33,000
Accumulated Depreciation—Equipment . € 9,900
Accounts Payable 10,700
Salaries and Wages Payable 3,000
Share Capital—Ordinary 20,000
Retained Earnings 3,700
Totals €47,300 €47,300
P4-5B Lori Callebaut opened Callebaut Cleaning Service, AG on July 1, 2017. During July
the following transactions were completed.
July 1 Shareholders invested €20,000 cash in the business in exchange for ordinary shares.
1 Purchased used truck for €12,000, paying €4,000 cash and the balance on account.
3 Purchased cleaning supplies for €2,100 on account.
5 Paid €3,600 cash on one-year insurance policy effective July 1.
12 Billed customers €5,900 for cleaning services performed.
18 Paid €1,500 cash on amount owed on truck and €1,400 on amount owed on
cleaning supplies.
20 Paid €4,500 cash for employee salaries.
21 Collected €4,400 cash from customers billed on July 12.
25 Billed customers €9,400 for cleaning services performed.
31 Paid €400 for the monthly gasoline bill for the truck.
31 Declared and paid a €1,200 cash dividend.

The chart of accounts for Callebaut Cleaning Service contains the following accounts: No.
101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 130 Prepaid Insurance, No.
157 Equipment, No. 158 Accumulated Depreciation—Equipment, No. 201 Accounts
Payable, No. 212 Salaries and Wages Payable, No. 311 Share Capital—Ordinary, No. 320
Retained Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue,
No. 633 Gasoline Expense, No. 631 Supplies Expense, No. 711 Depreciation Expense, No.
722 Insurance Expense, and No. 726 Salaries and Wages Expense.

Instructions
(a) Journalize and post the July transactions. Use page J1 for the journal and the
threecolumn form of account.
(b) Prepare a trial balance at July 31 on a worksheet.
(c) Enter the following adjustments on the worksheet and complete the worksheet.
(1) Services performed but unbilled and uncollected at July 31 were €3,300.
(2) Depreciation on equipment for the month was €500.
(3) One-twelfth of the insurance expired.
(4) An inventory count shows €560 of cleaning supplies on hand at July 31.
(5) Accrued but unpaid employee salaries were €2,200.
(d) Prepare the income statement and retained earnings statement for July and a
classifi ed statement of fi nancial position at July 31.
(e) Journalize and post adjusting entries. Use page J2 for the journal.
(f) Journalize and post closing entries and complete the closing process. Use page J3 for
the journal.
(g) Prepare a post-closing trial balance at July 31.
 Answer :
(a)
General Journal J1
Date Account Titles Ref. Debit Credit
July 1 Cash 101 20,000
Share capital—ordinary 311 20,000
1 Equipment 157 12,000
Cash 101 4,000
Accounts Payable 201 8,000
3 Supplies 126 2,100
Accounts Payable 201 2,100
5 Prepaid Insurance 130 3,600
Cash 101 3,600
12 Accounts Receivable 112 5,900
Service Revenue 400 5,900
18 Accounts Payable 201 2,900
Cash 101 2,900
20 Salaries and Wages Expense 726 4,500
Cash 101 4,500
21 Cash 101 4,400
Accounts Receivable 112 4,400
25 Accounts Receivable 112 9,400
Service Revenue 400 9,400
31 Gasoline Expense 633 400
Cash 101 400
31 Dividends 332 1,200
Cash 101 1,200

a), e), f)

Cash No. 101

Date Explanation Ref. Debit Credit Balance
July 1 J1 20,000 20,000
1 J1 4,000 16,000
5 J1 3,600 12,400
18 J1 2,900 9,500
20 J1 4,500 5,000
21 J1 4,400 9,400
31 J1 400 9,000
31 J1 1,200 7,800

Accounts Receivable No. 112

Date Explanation Ref. Debit Credit Balance
July 12 J1 5,900 5,900
21 J1 4,400 1,500
25 J1 9,400 10,900
31 Adjusting J2 3,300 14,200

Supplies
Date Explanation Ref. Debit Credit Balance
July 3 J1 2,100 2,100
31 Adjusting J2 1,540 560

Prepaid Insurance
Date Explanation Ref. Debit Credit Balance
July 5 J1 3,600 3,600
31 Adjusting J2 300 3,300

Equipment
Date Explanation Ref. Debit Credit Balance
July 1 J1 12,000 12,000

Accounts Payable No. 201

Date Explanation Ref. Debit Credit Balance
July 1 J1 8,000 8,000
3 J1 2,100 10,100
18 J1 2,900 7,200

Salaries and Wages Payable No. 212

Date Explanation Ref. Debit Credit Balance
July 31 Adjusting J2 2,200 2,200

Share Capital—Ordinary
Date Explanation Ref. Debit Credit Balance
July 1 J1 20,000 20,000
 Retained Earnings No. 320
Date Explanation Ref. Debit Credit Balance
July 1
31 Closing J3 9,160 9,160
31 Closing J3 1,200 7,960

Dividends
Date Explanation Ref. Debit Credit Balance
July 31 J1 1,200 1,200
31 Closing J3 1,200 0

Income Summary
Date Explanation Ref. Debit Credit Balance
July 31 Closing J3 18,600 18,600
31 Closing J3 9,440 9,160
31 Closing J3 9,160 0

Service Revenue No. 400

Date Explanation Ref. Debit Credit Balance
July 12 J1 5,900 5,900
25 J1 9,400 15,300
31 Adjusting J2 3,300 18,600
31 Closing J3 18,600 0

Gasoline Expense
Date Explanation Ref. Debit Credit Balance
July 31 J1 400 400
31 Closing J3 400 0

Supplies Expense No. 631

Date Explanation Ref. Debit Credit Balance
July 31 Adjusting J2 1,540 1,540
31 Closing J3 1,540 0
 Depreciation Expense No. 711
Date Explanation Ref. Debit Credit Balance
July 31 Adjusting J2 500 500
31 Closing J3 500 0

Insurance Expense
Date Explanation Ref. Debit Credit Balance
July 31 Adjusting J2 300 300
31 Closing J3 300 0

Salaries and Wages Expense No. 726

Date Explanation Ref. Debit Credit Balance
July 20 J1 4,500 4,500
31 Adjusting J2 2,200 6,700
31 Closing J3 6,700 0
(b) & (c) CALLEBAUT CLEANING SERVICE, AG
Worksheet
For the Month Ended July 31, 2017
Adjusted Income Statement of
Account Titles Trial Balance Adjustments Trial Balance Statement Financial sheet

Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.

Cash 7,800 7,800 7,800

Accounts Receivable 10,900 (a) 3,300 14,200 14,200
Supplies 2,100 (d) 1,540 560 560
Prepaid Insurance 3,600 (c) 300 3,300 3,300
Equipment 12,000 12,000 12,000
Accounts Payable 7,200 7,200 7,200
Share Capital—Ordinary 20,000 20,000 20,000
Dividends 1,200 1,200 1,200
Service Revenue 15,300 (a) 3,300 18,600 18,600
Gasoline Expense 400 400 400
Salaries and Wages 4,500 (e) 2,200 6,700 6,700
Expense ______ _
Totals 42,500 42,500
Depreciation Expense (b) 500 500 500
Accum. Depr.— (b) 500 500 500
Equipment
Insurance Expense (c) 300 300 300
Supplies Expense (d) 1,540 1,540 1,540
Salaries and Wages (e) 2,200 2,200 2,200
Payable _____ ______ _____
Totals 7,840 7,840 48,500 48,500 9,440 18,600 39,060 29,900
Net Income 9,160 9,160
Totals 18,600 18,600 39,060 39,060
d)
CALLEBAUT CLEANING SERVICE, AG
Income Statement
For the Month Ended July 31, 2017

Revenues
Service revenue 18,600
Expenses
Salaries and wages expense 6,700
Supplies expense 1,540
Depreciation expense 500
Gasoline expense 400
Insurance expense 300
Total expenses 9,440
Net income € 9,160

CALLEBAUT CLEANING SERVICE, AG

Retained Earnings Statement
For the Month Ended July 31, 2017

Retained Earnings, July 1 0

Add: Net income 9,160
9,160
Less: Dividends 1,200
Retained Earnings, July 31 € 7,960

CALLEBAUT CLEANING SERVICE, AG

Statement of Financial Position
July 31, 2017

Assets
Property, plant, and equipment
Equipment 12,000
Less: Accumulated depreciation equipment . 500 € 11,500
 CALLEBAUT CLEANING SERVICE, AG
Statement of Financial Position (Continued)
July 31, 2017

Assets (Continued)
Current assets
Prepaid insurance . 3,300
Supplies 560
Accounts receivable . 14,200
Cash 7,800 25,860
Total assets €37,360

Equity and Liabilities

Equity
Share capital—ordinary 20,000
Retained earnings 7,960 27,960
Current liabilities
Accounts payable 7,200
Salaries and wages payable 2,200 9,400
Total equity and liabilities . €37,360

e)
General Journal J2
Date Account Titles Ref. Debit Credit
July 31 Accounts Receivable 112 3,300
Service Revenue 400 3,300
31 Depreciation Expense 711 500
Accumulated Depreciation Equipment 158 500
31 Insurance Expense 722 300
Prepaid Insurance 130 300
31 Supplies Expense 631 1,540
Supplies 126 1,540
31 Salaries and Wages Expense 726 2,200
Salaries and Wages Payable 212 2,200
f)
General Journal J3
Date Account Titles Ref. Debit Credit
July 31 Service Revenue 400 18,600
31 Income Summary 350 18,600
Income Summary 350 9,440
Salaries and Wages Expense 726 6,700
Depreciation Expense 711 500
Insurance Expense 722 300
Supplies Expense 631 1,540
Gasoline Expense 633 400
31 Income Summary 350 9.160
Retained Earnings 320 9,160
31 Retained Earnings 320 1,200
Dividends 332 1,200

g)
CALLEBAUT CLEANING SERVICE, AG
Post-Closing Trial Balance
July 31, 2017

Debit Credit
Cash 7,800
Accounts Receivable 14,200
Supplies 560
Prepaid Insurance 3,300
Equipment 12,000
Accumulated Depreciation—Equipment 500
Accounts Payable 7,200
Salaries and Wages Payable 2,200
Share Capital—Ordinary 20,000
Retained Earnings 7,960
€37,860 €37,860