Chapter 4 Exercises Solutions
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The document contains exercises from a textbook on accounting principles. It includes a partial worksheet, income statement, balance sheet, and journal entries for closing entries for Goode Company for the month of April 2008. The summary provides high-level financial information including revenues of $15,590, expenses of $12,328, net income of $3,262, total assets of $42,001, and stockholders' equity of $30,572.
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Chapter 4 Exercises Solutions
- 1. 1 Chapter 4 Textbook Exercises Edward Charfauros Principles of Accounting ACC/280 February 7, 2012 Kurt Meyer
- 2. 2 Exercises: E4-2 GOODE COMPANY Worksheet (partial) For the Month Ended April 30, 2008 Account Titles Cash Accounts Receivable Prepaid Rent Equipment Accumulated Depreciation Notes Payable Adjusted Trial Balance Dr. Cr. 13,752 7,840 2,280 23,050 Depreciation Expense Interest Expense Interest Payable Totals Net Income Totals Balance Sheet Dr. 13,752 7,840 Cr. 2,280 23,050 4,921 4,921 5,700 5,700 5,672 5,672 25,000 25,000 5,960 Accounts Payable Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Rent Expense Income Statement Dr. Cr. 5,960 3,650 3,650 15,590 $15,590 10,840 $10,840 760 $760 671 $671 57 $57 57 62,900 62,900 57 $12,328 $15,590 $50,572 3,262 $47,310 3,262 $50,572 $50,572
- 3. 3 Exercises: E4-3 (1) a GOODE COMPANY Income Statement For the Month Ended April 30, 2008 Revenues Service Income $15,590 Expenses Salaries Expense Rent Expense Depreciation Expense Interest Expense Total Expense $10,840 $760 $671 $12,328 Net Income $3,262 (1) b GOODE COMPANY Income Statement For the Month Ended April 30, 2008 Retained Earnings – April 1 Add: Net Income Less: Dividends Retained Earnings – April 30 (1) c GOODE COMPANY Balance Statement April 30, 2008 $5,960 $3,262 $9,222 $3,650 $5,572
- 4. 4 Assets Current Assets Cash Accounts Receivable Prepaid Rent $13,752 $7,840 $2,280 Total Current Assets $23,872 Property, Plant, & Equipment Equipment Less: Accumulated Depreciation $23,050 $4,921 Total Assets $18,129 $42,001 Liabilities and Stockholders’ Equity Current Liabilities Notes Payable Accounts Payable Interest Payable $5,700 $5,672 $57 Total Current Liabilities $11,429 Stockholders’ Equity Common Stock Retained Earnings Total Stockholders’ Equity Total Liabilities, & Stockholders’ Equity $25,000 $5,572 Exercises: E4-4 (1) a GOODE COMPANY $30,572 $42,001
- 5. 5 Journal Closing Entries at April 30, 2008 (1) (2) (3) (4) Apr 30 Service Revenue Income Summary 15,590 Apr 30 Income Summary Salaries Expense Rent Expense Depreciation Expense Interest Expense 12,328 Apr 30 Income Summary Retained Earnings 3,262 Apr 30 Retained Earnings Dividends 3,650 15,590 10,840 760 671 57 3,262 3,650 (1) b GOODE COMPANY Income Summary and Retained Earnings Closing Entries at April 30, 2008
- 6. 6 2) 3) 4) $12,328 $3,262 $15,590 $3,650 Income Summary 1) $15,590 $15,590 Retained Earnings Balance 3) $5,960 $3,262 $5,572 (1) c GOODE COMPANY Post-Closing Trial Balance April 30, 2008 Cash Accounts Receivable Prepaid Rent Equipment Accumulated Depreciation Notes Payable Accounts Payable Interest Payable Common Stock Retained Earnings Debt $13,752 $7,840 $2,280 $23,050 $46,922 Credit $4,921 $5,700 $5,672 $57 $25,000 $5,572 $46,922
- 7. 6 2) 3) 4) $12,328 $3,262 $15,590 $3,650 Income Summary 1) $15,590 $15,590 Retained Earnings Balance 3) $5,960 $3,262 $5,572 (1) c GOODE COMPANY Post-Closing Trial Balance April 30, 2008 Cash Accounts Receivable Prepaid Rent Equipment Accumulated Depreciation Notes Payable Accounts Payable Interest Payable Common Stock Retained Earnings Debt $13,752 $7,840 $2,280 $23,050 $46,922 Credit $4,921 $5,700 $5,672 $57 $25,000 $5,572 $46,922