Name Date

CHAPTER 8 REVIEW EXERCISES (continued)

Exercise 7, p. 326

A.

Bank

Acc

ount

s Re

ceiv

able

Supp

lies

and

Mat

eria

ls

Prep

aid

Insu

ranc

e

Land

Build

ings

Acc

. Dep

.—Bu

ildin

gs

Equi

pmen

t

Acc

. Dep

.—Eq

uipm

ent

Aut

omot

ive

Equi

pmen

t

Acc

. Dep

.—A

uto.

Equ

ip.

Acc

ount

s Pa

yabl

e

HST

Pay

able

HST

Rec

over

able

Bank

Loa

n

Mor

tgag

e Pa

yabl

e

R. L

ucht

, Cap

ital

R. L

ucht

, Dra

win

gs

Reve

nue—

Adv

ertis

ing

Reve

nue—

Circ

ulat

ion

Bank

Int.

& C

harg

es E

xp.

Build

ing

Mai

nten

ance

Exp

ense

Car

Exp

ense

Misc

ella

neou

s Ex

pens

e

Mor

tgag

e In

tere

st E

xpen

se

Offi

ce E

xpen

se

Offi

ce S

alar

ies

Expe

nse

Sale

s Pr

omot

ions

Exp

ense

AC

CO

UN

TS

TR

IAL

BALA

NC

E

Oak

vill

e J

ourn

alYe

ar E

nd

ed D

ecem

ber

31,

20–

8

Dr

Cr

AD

JUST

MEN

TS

Dr

Cr

50

9

89

03

20

0

35

60 – – –

450

00

227

10

300

00

92

16

12

80

100

00

0

660

00

0

729

44

8

218

94

6

913

15

– – – 42 – – – 91 – –

– 20 16 – – – – – – – – – 50 13 – – 15 –

20

00

153

17

237

95

42

00

775

00

0

630

00

0

957

00

753

25

75

0

500

00

121

50

32

20

49

60

59

40

363

00

12

40

343

19

27

50

162

91

28

75

150

00

75

70

100

00

14

90

20 – – – – 80

INC

OM

E ST

ATEM

ENT

Dr

Cr

210

04

3

913

15

– –

BA

LAN

CE

SHEE

T

Dr

Cr

20

00

153

17

80

13

13

25

775

00

0

630

00

0

957

00

753

25

75

0

500

00

– 20 56 – – – – – – –

– – 50 13 – – 15 –

121

50

32

20

51

60

29

75

363

00

12

40

343

19

27

50

600

00

302

80

400

00

107

07

12

80

100

00

0

660

00

0

729

44

8

– – – 22 – – – 91

Wor

ksh

eet

12 3 5 5 5 1

114

Copyright © 2013 Pearson Canada Inc. Chapter 8 Completing the Accounting Cycle 269

Name Date

CHAPTER 8 REVIEW EXERCISES (continued)

Exercise 7, p. 326 (continued)

Tele

phon

e Ex

pens

e

Truc

k Ex

pens

e

Util

ities

Exp

ense

Wag

es E

xpen

se

Su

p. &

Mat

eria

ls E

xp.

Insu

ran

ce E

xpen

se

Un

earn

ed R

ev—

Ad

s

Dep

.—B

uil

din

gs

Dep

.—E

quip

men

t

Dep

.—A

uto

. Equ

ip.

Net

In

com

e

AC

CO

UN

TS

TR

IAL

BALA

NC

E

Oa

kv

ille

Jo

urn

al

Ye

ar E

nd

ed

De

ce

mb

er 3

1, 2

0–8

Dr

Cr

AD

JUST

MEN

TS

Dr

Cr

74

6

162

91

28

75

150

00

75

70

100

00

621

30

20 20 – – – – –

1907

91

633

– 19 – – 33

29

46

263

34

113

50

943

19

1907

91

6

89

03

621

30

– –

INC

OM

E ST

ATEM

ENT

Dr

Cr

301

35

8

301

35

8

– –

BA

LAN

CE

SHEE

T

Dr

Cr

1653

43

0

1653

43

0

76 76

– 39 – – 20 – – – – 37 63 –

29

46

270

80

113

50

943

19

162

91

28

75

150

00

75

70

100

00

288

54

6

128

11

301

35

8

89

03

1640

61

9

128

11

1653

43

0

– 13 63 76

Wo

rk

sh

ee

t

2

4

3 5 5 51

270 Accounting 1 Teacher’s Key Copyright © 2013 Pearson Canada Inc.

Name Date

REVENUE

Advertising

Circulation

Total Revenue

EXPENSES

Bank Interest and Charges Expense

Building Maintenance Expense

Car Expense

Miscellaneous Expense

Mortgage Interest Expense

Office Expense

Office Salaries Expense

Sales Promotions Expense

Telephone Expense

Truck Expense

Utilities Expense

Wages Expense

Supplies and Materials Expense

Insurance Expense

Depreciation—Buildings

Depreciation—Equipment

Depreciation—Automobile Equipment

Total Expenses

NET INCOME

$210 0 4 3

91 3 1 5

$ 12 1 5 0

3 2 2 0

5 1 6 0

5 9 7 5

36 3 0 0

1 2 4 0

34 3 1 9

2 7 5 0

2 9 4 6

28 0 8 0

11 3 5 0

94 3 1 9

16 2 9 1

2 8 7 5

15 0 0 0

7 5 7 0

10 0 0 0

$301 3 5 8

288 5 4 6

$ 12 8 1 1

–

37

63

–

–

–

–

50

13

–

–

15

–

–

39

–

–

20

–

–

–

–

CHAPTER 8 REVIEW EXERCISES (continued)

Exercise 7, p. 326 (continued)

B. OAKVILLE JOURNAL

INCOME STATEMENT

YEAR ENDED DECEMBER 31, 20–8

Copyright © 2013 Pearson Canada Inc. Chapter 8 Completing the Accounting Cycle 271

Name Date

CHAPTER 8 REVIEW EXERCISES (continued)

Exercise 7, p. 326 (continued)

B. (continued)

ASSETS

Current Assets

Bank

Accounts Receivable

Supplies and Materials

Prepaid Insurance

Total Current Assets

Long-Term Assets

Land

Buildings

Less: Accumulated Depreciation

Equipment

Less: Accumulated Depreciation

Automotive Equipment

Less: Accumulated Depreciation

Total Long-Term Assets

Total Assets

LIABILITIES

Current Liabilities

Accounts Payable

HST Payable

Less: HST Recoverable

HST Owed

Unearned Revenue—Advertising

Bank Loan

Total Current Liabilities

Long-Term Liabilities

Mortgage Payable

Total Liabilities

$ 2 0 0 0

15 3 1 7

8 0 1 3

1 3 2 5

$775 0 0 0

570 0 0 0

65 4 2 0

35 3 2 5

$ 10 7 0 7

5 3 0

8 9 0 3

100 0 0 0

$630 0 0 0

60 0 0 0

$ 95 7 0 0

30 2 8 0

$ 75 3 2 5

40 0 0 0

$ 1 2 8 0

7 5 0

$ 26 6 5 5

1445 7 4 5

$1472 4 0 0

$ 120 1 4 0

660 0 0 0

$ 780 1 4 0

–

–

–

–

–

–

–

–

–

20

56

–

–

–

–

–

22

–

–

–

76

–

76

22

–

22

OAKVILLE JOURNAL

BALANCE SHEET

DECEMBER 31, 20–8

272 Accounting 1 Teacher’s Key Copyright © 2013 Pearson Canada Inc.

Name Date

CHAPTER 8 REVIEW EXERCISES (continued)

Exercise 7, p. 326 (continued)

B. (continued)

C.

PARTICULARSDATE P.R. DEBIT CREDIT

GENERAL JOURNAL PAGE

Adjusting Entries

Supplies and Materials

Car Expense

Miscellaneous Expense

Truck Expense

Accounts Payable

Supplies and Materials Expense

Supplies and Materials

Insurance Expense

Prepaid Insurance

Revenue—Advertising

Unearned Revenue—Advertising

Depreciation—Buildings

Accum. Dep.—Buildings

Depreciation—Equipment

Accum. Dep.—Equipment

Depreciation—Automotive Equipment

Accum. Dep.—Automotive Equipment

5 0 9

2 0 0

3 5

7 4 6

16 2 9 1

2 8 7 5

8 9 0 3

15 0 0 0

7 5 7 0

10 0 0 0

60

–

–

20

20

–

–

–

–

–

1 4 9 0

16 2 9 1

2 8 7 5

8 9 0 3

15 0 0 0

7 5 7 0

10 0 0 0

80

20

–

–

–

–

–

31

31

31

31

31

31

31

Dec.20–8

OWNER’S EQUITY

R. Lucht, Capital

Balance December 1

Net Income

Less: Drawings

Decrease in Capital

Balance December 31

Total Liabilities and Equity

$729 4 4 8

(37 1 8 8

$ 12 8 1 1

50 0 0 0

692 2 6 0

$1472 4 0 0

63

–

91

37)

54

76

Copyright © 2013 Pearson Canada Inc. Chapter 8 Completing the Accounting Cycle 273

Name Date

CHAPTER 8 REVIEW EXERCISES (continued)

Exercise 7, p. 326 (continued)

C. (continued)

PARTICULARSDATE P.R. DEBIT CREDIT

GENERAL JOURNAL PAGE

Closing Entries

Revenue—Advertising

Revenue—Circulation

Income Summary

Income Summary

Bank Interest and Charges Expense

Building Maintenance Expense

Car Expense

Miscellaneous Expense

Mortgage Interest Expense

Office Expense

Office Salaries Expense

Sales Promotion Expense

Telephone Expense

Truck Expense

Utilities Expense

Wages Expense

Supplies and Materials Expense

Insurance Expense

Depreciation—Building

Depreciation—Equipment

Depreciation—Automotive Equipment

Income Summary

R. Lucht, Capital

R. Lucht, Capital

R. Lucht, Drawings

210 0 4 3

91 3 1 5

288 5 4 6

12 8 1 1

50 0 0 0

–

–

37

63

–

301 3 5 8

12 1 5 0

3 2 2 0

5 1 6 0

5 9 7 5

36 3 0 0

1 2 4 0

34 3 1 9

2 7 5 0

2 9 4 6

27 0 8 0

11 3 5 0

94 3 1 9

16 2 9 1

2 8 7 5

15 0 0 0

7 5 7 0

10 0 0 0

12 8 1 1

50 0 0 0

–

–

–

50

13

–

–

15

–

–

39

–

–

20

–

–

–

–

63

–

31

31

31

31

Dec.20–8

274 Accounting 1 Teacher’s Key Copyright © 2013 Pearson Canada Inc.

Name Date

CHAPTER 8 REVIEW EXERCISES (continued)Exercise 7, p. 326 (continued)

D.

Bank Accounts Receivable Supplies & Materials

2 000 15 317.20 23 795.16

Prepaid Insurance Land Buildings

4 200 775 000 630 000

Accum. Dep.—Buildings Equipment Accum. Dep.—Equipment

45 000 95 700 22 710

Accum. Dep.— Automotive Equipment Auto. Equip. Unearned Revenue

75 325 30 000

Accounts Payable HST Payable HST Recoverable

9 216.42 1 280 750

Bank Loan Mortgage Payable R. Lucht, Capital

100 000 660 000 729 448.91

R. Lucht, Drawings Revenue—Advertising Revenue—Circulation

50 000 50 000 218 946 91 315

GENERAL LEDGER

Copyright © 2013 Pearson Canada Inc. Chapter 8 Completing the Accounting Cycle 275

16 291.20 509.60

8013.56

2 875

30 280

8 903

48 903

210 043

1 325

2

1

3

4

5

5

50 000

91 315

1

00 0

15 000

60 000

1 490.80

10 707.22

10 000

40 000

12 811.63

692 260.54

7 570

4

Name Date

CHAPTER 8 REVIEW EXERCISES (continued)

Exercise 7, p. 326 (continued)

D. (continued)

Building Maintenance Bank Interest & Charges Expense Car Expense

12 150 3 220 4 960.50

Miscellaneous Expense Mortgage Interest Expense Office Salaries Expense

5 940.13 36 300 34 319.15

Office Expense Sales Promotion Expense Telephone Expense

1 240 2 750 2 946

Truck Expense Utilities Expense Wages Expense

26 334.19 11 350 94 319

Depreciation Expense— Depreciation Expense— Depreciation Expense— Buildings Equipment Automotive Equipment

Supplies and Materials Expense Insurance Expense Income Summary

276 Accounting 1 Teacher’s Key Copyright © 2013 Pearson Canada Inc.

12 150 3 2201

5 160.50 200.00

5 975.1335.00

746.20

15 000

16 291.20 2 875 2 87516 291.20

7 570 10 000

288 546.37

12 811.63

15 000 7 570 10 000

301 358.00

36 300 34 319.151

1

5

2 3

5 5

1 240 2 750 2 946

27 080.39 11 350 94 319

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Name Date

CHAPTER 8 REVIEW EXERCISES (continued)Exercise 7, p. 326 (continued)

E.

Bank

Accounts Receivable

Supplies and Materials

Prepaid Insurance

Land

Buildings

Acc. Dep.—Buildings

Equipment

Acc. Dep.—Equipment

Automotive Equipment

Acc. Dep.—Automotive Equipment

Accounts Payable

HST Payable

HST Recoverable

Unearned Revenue—Advertising

Bank Loan

Mortgage Payable

R. Lucht, Capital

2 0 0 0

15 3 1 7

8 0 1 3

1 3 2 5

775 0 0 0

630 0 0 0

95 7 0 0

75 3 2 5

7 5 0

1603 4 3 0

60 0 0 0

30 2 8 0

40 0 0 0

10 7 0 7

1 2 8 0

8 9 0 3

100 0 0 0

660 0 0 0

692 2 6 0

1603 4 3 0

–

–

–

22

–

–

–

–

54

76

–

20

56

–

–

–

–

–

–

76

OAKVILLE JOURNAL

POST-CLOSING TRIAL BALANCE

DECEMBER 31, 20–8

Copyright © 2013 Pearson Canada Inc. Chapter 8 Completing the Accounting Cycle 277