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
0
42,000
2,850
44,850
(200)
$ 44,650
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
(270)
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
P4-41, cont.
Requirement 3
Date
Accounts and Explanation
Nov. 30 Service Revenue
Income Summary
To close revenue.
Debit
5,300
Credit
5,300
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
P4-41, cont.
Requirement 3, cont.
Cash
35,000 2,000
300 1,800
12,000 1,200
1,000
350
96,000 1,000
900
500
200
Balance 138,150
Nov. 1
Nov. 10
Nov. 16
Nov. 17
Nov. 20
Nov. 21
Nov. 2
Nov. 3
Nov. 7
Nov. 15
Nov. 25
Nov. 29
Nov. 30
Accounts Receivable
Nov. 9
3,800 300
Nov. 10
900
Nov. 21
Balance
2,600
Nov. 4
Balance
Nov. 2
Balance
Prepaid Rent
2,000 500
1,500
Adj.
Clos.
Adj.
Equipment
2,000
1,200
3,200
7,000
Balance
7,000
Accumulated Depreciation
270
Adj.
270
Balance
Nov. 4
Nov. 5
Nov. 18
Balance
Interest Payable
240
240
Adj.
Balance
Notes Payable
96,000
96,000
Nov. 20
Balance
Habib, Capital
42,000
200 2,850
2,650
Nov. 1
Clos.
Balance
Income Summary
Clos. 2,450 5,300
Clos. 2,850 2,850
Balance
0
Nov. 30
Balance
Clos.
Truck
Nov. 1
Accounts Payable
1,000
220
2,000
250
1,470
Unearned Revenue
Adj.
500 12,000
Nov. 16
11,500
Balance
Cleaning Supplies
220 190
Adj.
30
Prepaid Insurance
Nov. 3
1,800 150
Balance
1,650
Nov. 5
Nov. 7
Balance
Nov. 25
Habib, Capital
200
200
0
Service Revenue
5,300 3,800
1,000
500
0
Clos.
Balance
Clos.
Nov. 9
Nov. 17
Adj.
Balance
Salaries Expense
Nov. 15
350 350
Balance
0
Clos.
Advertising Expense
Nov. 29
500 500
Clos.
Balance
0
Nov. 18
Balance
Utilities Expense
250 250
0
Clos.
Adj.
Balance
Supplies Expense
190 190
0
Clos.
Depreciation Expense
Adj.
270 270
Clos.
Balance
0
Adj.
Balance
Rent Expense
500 500
0
Clos.
Insurance Expense
Adj.
150 150
Clos.
Balance
0
Adj.
Balance
Interest Expense
240 240
0
Clos.
P4-41, cont.
Requirement 4
CRYSTAL CLEAR CLEANING
Post-Closing Trial Balance
November 30, 2017
Account Title
Cash
Accounts Receivable
Cleaning Supplies
Prepaid Rent
Prepaid Insurance
Equipment
Truck
Accumulated DepreciationTruck
Accounts Payable
Unearned Revenue
Interest Payable
Notes Payable
Habib, Capital
Total
Balance
Debit
$ 138,150
2,600
30
1,500
1,650
3,200
7,000
Credit
$ 154,130
270
1,470
11,500
240
96,000
44,650
$ 154,130
4-6