The general ledger accounts and balances for Kits & Pups Grooming follow. $$ \begin{array}{ll} \mathbf{\text{General Ledger}} & \text{ }\\ \text{101 Cash in Bank} & \text{$\$ 4,296$}\\ \text{105 Accts. Rec. - Juan Alvarez} & \text{$1,528$}\\ \text{110 Accts. Rec. - Nathan Carlsbad} & \text{904}\\ \text{115 Accts. Rec. - Martha Giles} & \text{$1,219$}\\ \text{120 Grooming Supplies} & \text{$1,368$}\\ \text{125 Office Equipment} & \text{$8,467$}\\ \text{130 Office Furniture} & \text{$3,396$}\\ \text{135 Computer Equipment} & \text{$2,730$}\\ \text{140 Grooming Equipment} & \text{$1,974$}\\ \text{145 Kennel Equipment} & \text{$7,412$}\\ \text{201 Accts. Pay. - Able Store Equipment} & \text{$3,876$}\\ \text{205 Accts. Pay. - Dogs & - Cats Inc.} & \text{$2,746$}\\ \text{207 Accts. Pay. - Pet Gourmet} & \text{$1,281$}\\ \text{301 Abe Shultz, Capital} & \text{$30,928$}\\ \text{305 Abe Shultz, Withdrawals} & \text{$1,900$}\\ \text{310 Income Summary} & \text{\_\_\_}\\ \text{401 Boarding Revenue} & \text{$11,989$}\\ \text{405 Grooming Revenue} & \text{$4,420$}\\ \text{501 Advertising Expense} & \text{$3,934$}\\ \text{505 Equipment Repair Expense} & \text{943}\\ \text{510 Maintenance Expense} & \text{$2,483$}\\ \text{520 Rent Expense} & \text{$8,850$}\\ \text{530 Utilities Expense} & \text{$3,836$}\\ \end{array} $$ 1. Prepare a work sheet for the month ended September 30, 20--. 2. Prepare an income statement for the period. 3. Prepare a statement of changes in owner’s equity. Abe Shultz made an additional investment of $2,500 during the period. 4. Prepare a balance sheet in report form.

The general ledger account balances on May 31 for Outback Guide Service are:

$$\begin{array}{lll} \text{101} & \text{Cash in Bank} & \text{$\$ 2,834$}\\ \text{105} & \text{Accts. Rec. - Mary Johnson} & \text{384}\\ \text{125} & \text{Office Supplies} & \text{307}\\ \text{130} & \text{Office Equipment} & \text{$5,902$}\\ \text{135} & \text{Office Furniture} & \text{$2,804$}\\ \text{140} & \text{Computer Equipment} & \text{$3,295$}\\ \text{145} & \text{Hiking Equipment} & \text{922}\\ \text{150} & \text{Rafting Equipment} & \text{$8,351$}\\ \text{205} & \text{Accts. Pay. - Peak Equipment Inc.} & \text{$1,204$}\\ \text{301} & \text{Juanita Ortega, Capital} & \text{$20,419$}\\ \text{302} & \text{Juanita Ortega, Withdrawals} & \text{$1,800$}\\ \text{310} & \text{Income Summary} & \text{\_\_\_}\\ \text{401} & \text{Guide Service Revenue} & \text{$9,179$}\\ \text{501} & \text{Advertising Expense} & \text{795}\\ \text{505} & \text{Maintenance Expense} & \text{125}\\ \text{515} & \text{Rent Expense} & \text{$2,000$}\\ \text{525} & \text{Utilities Expense} & \text{$1,283$}\\ \end{array}$$

Prepare a work sheet for Outback Guide Service for the period ended May 31 in your working papers. Compute the total assets for Outback.

On October 31 Juanita Ortega, owner of Outback Guide Service, received a bank statement dated October 30. Juanita found the following: 1. The checkbook has a balance of $2,551.34. 2. The bank statement shows a balance of$2,272.36. 3. The statement shows a bank service charge of $20.00. 4. A check from Podaski Systems for$62.44, deposited on October 18, was returned by the bank. There is no fee for handling the NSF check. 5. A deposit of $672.48 made on October 30 does not appear on the bank statement. 6. These checks are outstanding: Check 872 for$126.84 Check 883 for $192.80 Check 881 for$87.66 Check 887 for 68.64 Using the preceding information: 1. Record the service charge and the NSF check in the checkbook. 2. Reconcile the bank statement. 3. Record the service charge and NSF check on page 7 of the general journal. 4. Post the journal entries to the appropriate general ledger accounts.

Abe Shultz owns Kits & Pups Grooming and uses the following accounts: $$ \begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{205 Accounts Payable—}\\ \text{115 Accounts Receivable—} & \text{Dogs & Cats Inc.}\\ \text{Martha Giles} & \text{301 Abe Shultz, Capital}\\ \text{125 Office Equipment} & \text{ }\\ \text{130 Office Furniture} & \text{ }\\ \text{140 Grooming Equipment} & \text{ }\\ \end{matrix} $$ For each transaction: 1. In your working papers, prepare a T account for each account listed. 2. Using the appropriate T accounts, analyze and record each of the following business transactions. Identify each transaction by number. 3. After recording all transactions, write the word Balance on the normal balance side of each T account. Then compute and record the balance for each account. $$ \begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{May 1} & \text{1. Abe Shultz invested an additional $\$45,000$ cash in his business.}\\ \text{5} & \text{2. Bought grooming equipment on account from Dogs & Cats Inc. for $\$8,500$.}\\ \text{10} & \text{3. Purchased an office lamp for $\$85$, Check 150.}\\ \text{14} & \text{4. Abe Shultz transferred his personal typewriter, worth $\$200$, to the business.}\\ \text{19} & \text{5. Made a $\$3,000$ payment on the grooming equipment bought on account, Check 151.}\\ \text{22} & \text{6. Sold the typewriter on account to Martha Giles for $\$200$.}\\ \text{29} & \text{7. Bought a photocopier for $\$1,500$, Check 152.}\\ \text{31} & \text{8.Received a $\$100$ payment for the typewriter sold on account.}\\ \end{array} $$

Abe Shultz owns and operates a pet grooming business called Kits & Pups Grooming. The following accounts are used to journalize transactions. $$ \begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{207 Accts. Pay.—Pet Gourmet}\\ \text{105 Accts. Rec.—Juan Alvarez} & \text{301 Abe Shultz, Capital}\\ \text{110 Accts. Rec.—N. Carlsbad} & \text{305 Abe Shultz, Withdrawals}\\ \text{115 Accts. Rec.—Martha Giles} & \text{310 Income Summary}\\ \text{125 Office Equipment} & \text{401 Boarding Revenue}\\ \text{130 Office Furniture} & \text{405 Grooming Revenue}\\ \text{135 Computer Equipment} & \text{501 Advertising Expense}\\ \text{140 Grooming Equipment} & \text{505 Equipment Repair Expense}\\ \text{145 Kennel Equipment} & \text{510 Maintenance Expense}\\ \text{201 Accts. Pay.—Able Store} & \text{520 Rent Expense}\\ \text{Equipment} & \text{525 Salaries Expense}\\ \text{205 Accts. Pay.—Dogs &} & \text{530 Utilities Expense}\\ \text{Cats Inc.} & \text{ }\\ \end{matrix} $$ Record the following transactions on page 7 of the general journal in your working papers. $$ \begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 1} & \text{Received $\$ 125$ for boarding a client's dog for one week, Receipt 300.}\\ \text{3} & \text{Abe Shultz contributed to the business a computer valued at $\$ 2,500,$ Memorandum 33. }\\ \text{5} & \text{Billed a client, Juan Alvarez, $\$ 80$ for grooming his pets, Sales Invoice 212. }\\ \text{9} & \text{Wrote Check 411 to Allegheny Power Co. for $\$ 150$ in payment for the month's electricity bill.}\\ \text{11} & \text{Abe Shultz withdrew $\$ 700$ for personal use, Check 412.}\\ \text{14} & \text{Purchased kennel equipment for $\$ 2,600$ from Dogs $\&$ Cats Inc., on account, Invoice DC92.}\\ \text{16} & \text{Paid the part-time receptionist's salary of $\$ 400$ by issuing Check 413.}\\ \text{18} & \text{Abe Shultz took from the business for his personal use a ten-key adding machine valued at $\$ 65,$ Memorandum 34.}\\ \text{23} & \text{Juan Alvarez sent a check for $\$ 80$ in full payment of his account, Receipt 301.}\\ \text{28} & \text{Purchased on credit $\$ 250$ in grooming equipment from the Pet Gourmet, Invoice PG333.}\\ \text{31} & \text{Issued Check 414 for $\$ 1,300$ as an installment payment for the amount owed to Dogs & Cats Inc. }\\ \end{array} $$

The work sheet for Wilderness Rentals for the month ended September 30, 20-- is in your working papers. Using the work sheet, prepare an income statement for Wilderness Rentals.

The ending balances in the general ledger accounts of Wilderness Rentals for the period ended May 31 follow.

$$\begin{array}{llll} \text{ } & \text{ } & \text{Debit} & \text{Credit}\\ \text{ } & \text{ } & \text{Balances} & \text{Balances}\\ \text{101} & \text{Cash in Bank} & \text{$\$ 5,814$} & \text{ }\\ \text{105} & \text{Accts. Rec. - Helen Katz} & \text{717} & \text{ }\\ \text{110} & \text{Accts. Rec. - Polk and Co.} & \text{590} & \text{ }\\ \text{115} & \text{Office Supplies} & \text{847} & \text{ }\\ \text{120} & \text{Office Equipment} & \text{$4,360$} & \text{ }\\ \text{125} & \text{Camping Equipment} & \text{$6,130$} & \text{ }\\ \text{201} & \text{Accts. Pay. - Adventure Equipment Inc.} & \text{ } & \text{$\$ 1,680$}\\ \text{203} & \text{Accts. Pay. - Digital Tech Computers} & \text{ } & \text{$3,554$}\\ \text{205} & \text{Accts. Pay. - Greg Mollaro} & \text{ } & \text{635}\\ \text{301} & \text{Ronald Hicks, Capital} & \text{ } & \text{$12,760$}\\ \text{305} & \text{Ronald Hicks, Withdrawals} & \text{1,200} & \text{ }\\ \text{310} & \text{Income Summary} & \text{\_\_\_} & \text{\_\_\_}\\ \text{401} & \text{Equipment Rental Revenue} & \text{ } & \text{9,716}\\ \text{501} & \text{Advertising Expense} & \text{$1,940$} & \text{ }\\ \text{505} & \text{Maintenance Expense} & \text{$1,083$} & \text{ }\\ \text{515} & \text{Rent Expense} & \text{$3,500$} & \text{ }\\ \text{525} & \text{Utilities Expense} & \text{$2,164$} & \text{ }\\ \end{array}$$

Prepare a work sheet for the period ended May 31. 1. Write the heading on the work sheet. 2. List all of the accounts in the Account Name and Trial Balance sections. For each account, include the account number, name, and balance. 3. Total and rule the Trial Balance section. Do total debits equal total credits? If not, find and correct the problem before continuing. 4. Extend the appropriate amounts to the Balance Sheet section. 5. Extend the appropriate amounts to the Income Statement section. 6. Total the amount columns in the Income Statement and Balance Sheet sections. 7. Enter the amount of net income or net loss in the appropriate columns in the Income Statement and Balance Sheet sections. 8. Total and rule the Income Statement and Balance Sheet sections. Identify the permanent accounts on the work sheet that have normal debit balances.

The totals of the payroll register for Kits & Pups Grooming are shown in your working papers. On December 31 the owner, Abe Shultz, wrote Check 1400 to pay the payroll. In your working papers: 1. Record the payroll entry in the general journal. 2. Post the entry to the general ledger accounts.

1. A closing entry must be made for the account Ticket Revenue, which has a balance of $6,000. 2. A business has three expense accounts: Gas and Oil Expense (balance,$700), Miscellaneous Expense (balance, $600), and Utilities Expense (balance,$1,800). The end of the fiscal year is June 30.

The following accounts have balances and appear in the Account Name section of the work sheet for Lee’s Bike Shop.

$$\begin{array}{l}{\text { Store Equipment }} \\ {\text { Rent Expense }} \\ {\text { Service Fees Revenue }} \\ {\text { Accounts Payable-Rubino Supply }} \\ {\text { Scott Lee, Capital }}\end{array} \quad \begin{array}{l}{\text { Advertising Expense }} \\ {\text { Accounts Receivable- John Langer }} \\ {\text { Scott Lee, Withdrawals }} \\ {\text { Maintenance Expense }} \\ {\text { Office Supplies }}\end{array}$$

Use a form similar to the one below in your working papers or on a separate sheet of paper. For the above accounts, enter an “X” in the column where the account balance is transferred. The first account has been completed as an example.

$$\begin{matrix} \text{ } & \text{Income Statement} & \text{ } & \text{Balance Sheet} & \text{ }\\ \hline \text{Account Name} & \text{Debit} & \text{Credit} & \text{Debit} & \text{Credit}\\ \hline \text{Store Equipment} & \text{ } & \text{ } & \text{x} & \text{ }\\ \end{matrix}$$

Which of the following are components of the cytoskeleton? Check all that apply.

a) nucleolus

b) ribosomes

c) microtubules

d) endoplasmic reticulum

e) actin filaments

f) intermediate filaments

a. What is the source of information for the closing entries? b. List the steps for journalizing the closing entries.

a. Why should you test for the equality of debits and credits? b. How would you test for the equality of debits and credits?

Sierra Company manufactures soccer balls in two sequential processes: Cutting and Stitching. All direct materials enter production at the beginning of the cutting process. The following information is available regarding its May inventories.

	Beginning Inventory	Ending Inventory
Raw materials inventory	$6,000	$ 9,250
Work in process inventory-Mixing	43,500	51,500
Work in process inventory-Blending	63,300	60,500
Finished goods inventory	20,100	8,250

The following additional information describes the company’s production activities for May.

Direct materials                                        Factory Overhead (actual costs)    
Raw materials purchased on credit       $25,000        Indirect materials used$ 6,000
Direct materials used—Cutting             21,750        Indirect labor used                     55,000
Direct materials used—Stitching                0        Other overhead costs                    47,000

Direct Labor                                            Factory Overhead Rates
Direct labor—Cutting                    $15,600        Cutting                     150% of direct materials used
Direct labor—Stitching                    62,400        Stitching                   120% of direct labor used
Total factory payroll paid (in cash)     133,000        Sales$256,000

Required

1. Compute the amount of (a) production costs transferred from Cutting to Stitching, (b) production costs transferred from Stitching to finished goods, and (c) cost of goods sold.

2. Prepare summary journal entries dated May 31 to record the following May activities: (a) raw materials purchases, (b) direct materials usage, (c) indirect materials usage, (d) direct labor costs incurred, (e) indirect labor costs incurred, (f) payment of factory payroll, (g) other overhead costs (credit Other Accounts), (h) overhead applied, (i) goods transferred from Cutting to Stitching, (j) goods transferred from Stitching to finished goods, (k) cost of goods sold, and (l) sales.