EXERCISES 4-1 Answer

EXERCISES

EX. 4-1
(a)

JAZZ COMPANY
Work Sheet
For the Year Ended Dec. 31, 2006

Adjusted Income
Account Titles Trial Balance Adjustments Trial Balance Statement Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
_____________________________________________________________________________________________________
Cash 6,000 6,000 6,000
Accounts Receivable 7,850 (e) 2,250 10,100 10,100
Supplies 6,000 (a) 2,000 4,000 4,000
Prepaid Insurance 9,000 (b) 3,000 6,000 6,000
Equipment 10,000 10,000 10,000
Note Payable 9,750 9,750 9,750
Unearned Fees 3,100 (d) 450 2,650 2,650
Common Stock 4,000 4,000 4,000
Retained Earnings 8,000 8,000 8,000
Fees Earned 22,000 (d) 450 24,700 24,700
(e) 2,250
Salaries Expense 8,000 ______ (g) 850 8,850 8,850
Totals 46,850 46,850
Supplies Expense (a) 2,000 2,000 2,000
Insurance Expense (b) 3,000 3,000 3,000
Accumulated Depr. (c) 1,000 1,000 1,000
Depreciation Expense (c) 1,000 1,000 1,000
Interest Expense (f) 300 300 300
Interest Payable (f) 300 300 300
Salaries Payable _____ (g) 850 ______ __ 850 ______ ______ ______ __ 850
Totals 9,850 9,850 51,250 51,250 15,150 24,700 36,100 26,550
Net Income 9,550 _____ _____ 9,550
Totals 24,700 24,700 36,100 36,100




(b)



(c) JAZZ COMPANY
Post-Closing Trial Balance
December 31, 2006

Debit Credit
Cash $ 6,000
Accounts Receivable 10,100
Supplies 4,000
Prepaid Insurance 6,000
Equipment 10,000
Accumulated Depreciation $ 1,000
Note Payable 9,750
Unearned Fees 2,650
Salaries Payable 850
Interest Payable 300
Common Stock 4,000
Retained Earnings ($8,000 + $9,550) 17,550
$36,100 $36,100