Sariah's Clip Shop, O'Malley Repair Shop

(See attached file for full problem description)

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5. The Capital, Withdrawals, Income Summary accounts for Sariah's Clip Shop are shown in the T account form below. The closing entries have been recorded for the year ended Dec. 31, 20x4. Prepare a statement of owner's equity for Sariah's Clip Shop.

Sariah Abdul, Capital

12/31/x4 $4,500 12/31/x3 $13,000
12/31/x4 9,500
Balance 18,000
Income Summary

12/31/x4 21,500 12/31/x4 31,000
12/31/x4 9,500
Balance -------

Sariah Abdul, Withdrawals

4/1/x4 $1,500 12/31/x4 $4,500
7/1/x4 1,500
10/1/x4 1,500

6. In the partial worksheet that follows, the Trial Balance and Income Statement columns have been completed. All amounts shown are in dollars. a) Show the adjustments that have been made in journal form. b) Prepare a balance Statement.
Account name Trial Balance Income Statement
Debit Credit Debit Credit
Cash 14
Acc. Receivable 24
Supplies 22
Prepaid insurance 16
Building 50
Accum. Depreciation, building 16
Account payable 8
Unearned revenues 4
T.L., Capital 64
Revenues 88 92
Wages Expense 54 60
Balance 180 180

Insurance Expense 8
Supplies Expense 16
Depreciation Expense, Building 4

Net income 88 92
4
92 92
7. The items that appear below are the adjustments columns of a worksheet dated June 30,20xx.
1) Prepare the adjusting entries in journal form.
2) Where required, prepare appropriate reversing entries in journal form

Account Name Adjustments
Debit credit
Prepaid insurance (a) 240
Office supplies (b) 630
Accumulated Depreciation, office supplies (c) 1,400
Accumulated Depreciation, store equipment (d) 2,200
Office salaries expense (e) 240
Store salaries expense (e) 480
Insurance expense (a) 240
Office supplies Expense (b) 630
Depreciation expense, office equipment (c) 1,400
Depreciation expense, store equipment (d) 2,200
Salaries payable (e) 720

$ 5,190 $5, 190

8. The items that follow are from the Income Statement columns of the worksheet for O'Malley Repair Shop for the year ended December 31, 20xx. Prepare entries in journal form to close the revenue, expense, Income Summary, and Withdrawals accounts. O'Malley withdrew $5,000 during the year.

Account Name Income Statement
Debit Credit

Repair Revenue $ 25,620
Wages Expense $ 8,110
Rent Expense 1,200
Supplies Expense 4,260
Insurance Expense 915
Depreciation Expense, Repair Equipment 1,345

$ 15,830 $ 25, 620
Net Income 9,790
25,620 25, 620