Show the effects of each transaction on the accounting equation. Enter each amount in the proper column.
REMEMBER: each transaction affects TWO accounts! Use the + or - signs to indicate whether the amount increased or decreased the account. Total up each account in the last line of the worksheet then "check" your work by totaling up Assets, Liabilities and Equity. Put each transaction on a separate line.
Remember the accounting equation: assets = liabilities + equity. Note any changes in Retained Earnings on the page below the worksheet.
Changes in Retained Earnings:
(b) Prepare an Income Statement for June
c) Classified balance sheet at June 30, 2012 (Remember, assets and liabilities + equity MUST equal). If it doesn't, there is an error somewhere).
(a) Journalize the transactions, including explanations. (Note, enter all accounts in one box. The dates have been included to help with formatting).
Remember that every transaction affects TWO accounts!
(b) Post the transactions to the ledger T Accounts
Be sure to post the amounts to the correct side of the T-Account!
(c) RIDGELL CONSULTING
Trial Balance
May 31, 2012
E4-14. Prepare the closing entries at January 31, 2012.
(Enter all accounts for each transaction in one box. Dates have been provided).
E4-15. Journalize (a) the July transactions and (b) adjusting entries that were made on July 31. Enter all accounts in one box. Dates have been provided
Part A
E4-16 Prepare the adjusting entries that were made:
(a) Enter all accounts in one box. The dates have been included to help with formatting.
E4-17 Prepare the income statement and retained earnings statements for the year and the classified balance sheet at August 31.
(a) Prepare the closing entries for the temporary accounts at August 31. (Note, enter all accounts in one box. The dates have been included to help with formatting).