Interest expense Supplies expense

_{Bal. 0 Bal. 1,100}

_{4. 1,500 7. 700}

_{1,500 Closing 1,800 Closing}

12/31 Bal.012/31 Bal.0

Problem 2-4 (continued)

Insurance expense Bad debt expense

_{Bal. 6,000 Bal. 3,000}

_{3,750 6. 2. 2,500}

_{2,250 Closing 5,500 Closing}

12/31 Bal.012/31 Bal.0

Income summary Retained earnings

_{Bal. 0 24,500 Bal.}

_{147,333 Closing}

_{Closing 123,450}

_{Closing 23,883 23,883 Closing}

12/31 Bal.0 48,38312/31 Bal.

Problem 2-4 (concluded)

Requirement 6

Account Title	Debits		Credits
Cash	30,000
Accounts receivable	40,000
Allowance for uncollectible accounts			5,500
Prepaid rent	1,000
Prepaid insurance	3,750
Supplies	800
Inventory	60,000
Note receivable	20,000
Interest receivable	1,333
Equipment	80,000
Accumulated depreciation-equipment			40,000
Accounts payable			28,000
Wages payable			1,500
Note payable			50,000
Interest payable			1,500
Unearned revenue			2,000
Common stock			60,000
Retained earnings	_______		48,383
Totals	236,883		236,883

B

Problem 2-5

ad debt expense 1,500

Allowance for uncollectible accounts 1,500

Rent expense 800

Prepaid rent 800

Supplies expense 700

Supplies 700

Interest receivable 1,500

Interest revenue 1,500

Depreciation expense 5,000

Accumulated depreciation 5,000

Wage expense 6,200

Wages payable 6,200

Interest expense 2,500

Interest payable 2,500

Rent revenue 2,000

Unearned rent revenue 2,000

R

Problem 2-6

equirement 2

a.Cash 70,000

Accounts receivable 30,000

Service revenue 100,000

b. Cash 27,300

Accounts receivable 27,300

c. Cash 10,000

Common stock 10,000

d.Salaries expense 41,000

Salaries payable 9,000

Cash 50,000

e.Miscellaneous expenses 24,000

Cash 24,000

f.Equipment 15,000

Cash 15,000

g.Retained earnings 2,500

Cash 2,500

Problem 2-6 (continued)

Requirements 1 and 3