Chapter 4

Practice Set
P4-41, Requirement 2
CRYSTAL CLEAR CLEANING
Income Statement
Month Ended November 30, 2017
Revenues:
Service Revenue
Expenses:
Salaries Expense
Rent Expense
Supplies Expense
Insurance Expense
Utilities Expense
Depreciation Expense
Advertising Expense
Interest Expense
Total Expenses
Net Income

$5,300
$350
500
190
150
250
270
500
240
2,450
$2,850

CRYSTAL CLEAR CLEANING

Statement of Owners Equity
Month Ended November 30, 2017
Habib, Capital, November 1, 2017
Owner contribution
Net income for the month

$0
42,000
2,850
44,850
(200)
$44,650

Owner withdrawal
Habib, Capital, November 30, 2017

4-1

P4-41, cont.
Requirement 2, cont.
CRYSTAL CLEAR CLEANING
Balance Sheet
November 30, 2017
Assets
Current Assets:
Cash
Accounts Receivable
Cleaning Supplies
Prepaid Rent
Prepaid Insurance
Total Current Assets
Plant Assets:
Equipment
Truck
Less: Accumulated Depreciation
Total Plant Assets
Total Assets

$138,150
2,600
30
1,500
1,650
$143,930
3,200
7,000
(200)
9,930
$153,860
Liabilities

Current Liabilities:
Accounts Payable
Unearned Revenue
Interest Payable
Total Current Liabilities
Long-term Liabilities:
Notes Payable
Total Liabilities

$1,470
11,500
240
$13,210
96,000
109,210
Owners Equity

Habib, Capital
Total Liabilities and Owners Equity

44,650
$153,860

4-2

P4-41, cont.
Requirement 3
Date
Accounts and Explanation
Nov. 30 Service Revenue
Income Summary
To close revenue.

Debit
5,300

Credit
5,300

30 Income Summary
Salaries Expense
Advertising Expense
Utilities Expense
Supplies Expense
Depreciation Expense
Rent Expense
Insurance Expense
Interest Expense
To close expenses.

2,450

30 Income Summary
Habib, Capital
To close Income Summary.

2,850

30 Habib, Capital
Habib, Withdrawals
To close withdrawals.

200

350
500
250
190
270
500
150
240

2,850

200

4-3

P4-41, cont.
Requirement 3, cont.

4-4

Nov. 1
Nov.10
Nov. 16
Nov. 17
Nov. 20
Nov. 21

Cash
35,000 2,000
300 1,800
12,000 1,200
1,000
350
96,000 1,000
900
500
200

Nov. 2
Nov. 3
Nov. 7
Nov. 15
Nov. 25
Nov. 29
Nov. 30

Accounts Receivable
3,800 300
Nov. 10
900
Nov. 21
Balance
2,600
Nov. 9

Cleaning Supplies
Nov. 4
220 190
Balance
300
Nov. 2
Balance

Prepaid Rent
2000 500
1,500

Prepaid Insurance
Nov. 3
1,800 150
Balance
1,650

Nov. 5
Nov. 7
Balance

Adj.

Adj.

Adj.

Equipment
2,000
1,200
3,200

Accounts Payable
Nov. 25
1,000
220
2,200
250
1,470

Nov. 4
Nov. 5
Nov. 18
Balance

Salaries Expense
Interest Payable
350 350
240
0
240

Clos.
Adj.
Balance

Nov. 15
Balance

Advertising Expense
Nov. 29
500 500
Clos.
Unearned Revenue
Balance
0
Adj.
500 12,000
Nov. 16
11,500
Balance
Utilities Expense
Nov. 18
250 250
Clos.
Balance
0
Notes Payable
96,000
Nov. 20
Supplies Expense
96,000
Balance
Adj.
190 190
Clos.
Balance
0
Habib, Capital
42,000
Nov. 1
Depreciation Expense
Clos.
200 2,850
Clos.
Adj.
270 270
Clos.
2,650
Balance
Balance
0
Income Summary
Rent Expense
Clos. 2,450 5,300
Adj.
500 500
Clos. 2,850 2,850
Balance
0
Balance
0

Clos.
Clos.
Balance

Insurance Expense
Habib, Capital
150 150
200 200
0
200

Clos.
Close

Adj.
Nov. 30
Balance
Balance
Adj.
Balance
Clos.

Nov. 1
Balance

P4-41, cont.
Requirement 3,
cont.

Truck
7,000
7,000

Interest Expense
240 240
Service Revenue
0
5,300 3,800
1,000
500
0

Clos.
Nov. 9
Nov. 17
Adj.
Balance

Accumulated Depreciation
270
Adj.
270
Balance

4-5

P4-41, cont.
Requirement 4
CRYSTAL CLEAR CLEANING
Post-Closing Trial Balance
November 30, 2017
Account Title

Balance
Debit
$138,150
2,600
30
1,500
1,650
3,200
7,000

Cash
Accounts Receivable
Cleaning Supplies
Prepaid Rent
Prepaid Insurance
Equipment
Truck
Accumulated DepreciationTruck
Accounts Payable
Unearned Revenue
Interest Payable
Notes Payable
Habib, Capital
Total

Credit

$154,130

270
1,470
11,500
240
96,000
44,650
$154,130

4-6