Prob.

4–6A

1. and 2. JOURNAL Page 1

Post.
Date Description Ref. Debit Credit
2012
Oct. 1 Cash ............................................................. 11 12,000
Accounts Receivable .................................. 12 6,000
Supplies ....................................................... 14 1,500
Office Equipment ........................................ 18 9,000
Shane Banovich, Capital ....................... 31 28,500
1 Prepaid Rent ................................................ 15 4,800
Cash........................................................ 11 4,800
2 Prepaid Insurance ....................................... 16 3,000
Cash........................................................ 11 3,000
4 Cash ............................................................. 11 4,000
Unearned Fees ....................................... 23 4,000
5 Office Equipment ........................................ 18 2,000
Accounts Payable.................................. 21 2,000
6 Cash ............................................................. 11 3,500
Accounts Receivable ............................ 12 3,500
10 Miscellaneous Expense .............................. 59 400
Cash........................................................ 11 400
12 Accounts Payable ....................................... 21 1,000
Cash........................................................ 11 1,000
12 Accounts Receivable .................................. 12 6,000
Fees Earned ........................................... 41 6,000
14 Salary Expense............................................ 51 1,000
Cash........................................................ 11 1,000
Prob. 4–6A (Continued)

1. and 2. JOURNAL Page 2

Post.
Date Description Ref. Debit Credit
2012
Oct. 17 Cash ............................................................. 11 7,500
Fees Earned ........................................... 41 7,500
18 Supplies ....................................................... 14 750
Cash........................................................ 11 750
20 Accounts Receivable .................................. 12 5,200
Fees Earned ........................................... 41 5,200
24 Cash ............................................................. 11 3,700
Fees Earned ........................................... 41 3,700
26 Cash ............................................................. 11 5,500
Accounts Receivable ............................ 12 5,500
27 Salary Expense............................................ 51 1,000
Cash........................................................ 11 1,000
29 Miscellaneous Expense .............................. 59 250
Cash........................................................ 11 250
31 Miscellaneous Expense .............................. 59 300
Cash........................................................ 11 300
31 Cash ............................................................. 11 2,800
Fees Earned ........................................... 41 2,800
31 Accounts Receivable .................................. 12 3,000
Fees Earned ........................................... 41 3,000
31 Shane Banovich, Drawing .......................... 32 8,000
Cash........................................................ 11 8,000
Prob. 4–6A (Continued)

2., 6., and 9.

Cash 11
Post. Balance
Date Item Ref. Dr. Cr. Dr. Cr.

2012
Oct. 1 ................................. 1 12,000 ............. 12,000 .............
1 ................................. 1 ............ 4,800 7,200 .............
2 ................................. 1 ............ 3,000 4,200 .............
4 ................................. 1 4,000 ............. 8,200 .............
6 ................................. 1 3,500 ............. 11,700 .............
10 ................................. 1 ............ 400 11,300 .............
12 ................................. 1 ............ 1,000 10,300 .............
14 ................................. 1 ............ 1,000 9,300 .............
17 ................................. 2 7,500 ............. 16,800 .............
18 ................................. 2 ............ 750 16,050 .............
24 ................................. 2 3,700 ............. 19,750 .............
26 ................................. 2 5,500 ............. 25,250 .............
27 ................................. 2 ............ 1,000 24,250 .............
29 ................................. 2 ............ 250 24,000 .............
31 ................................. 2 ............ 300 23,700 .............
31 ................................. 2 2,800 ............. 26,500 .............
31 ................................. 2 ............ 8,000 18,500 .............

Accounts Receivable 12
2012
Oct. 1 ................................. 1 6,000 ............. 6,000 .............
6 ................................. 1 ............ 3,500 2,500 .............
12 ................................. 1 6,000 ............. 8,500 .............
20 ................................. 2 5,200 ............. 13,700 .............
26 ................................. 2 ............ 5,500 8,200 .............
31 ................................. 2 3,000 ............. 11,200 .............

Supplies 14
2012
Oct. 1 ................................. 1 1,500 ............. 1,500 .............
18 ................................. 2 750 ............. 2,250 .............
31 Adjusting ................ 3 ............ 1,550 700 .............
Prob. 4–6A (Continued)

Prepaid Rent 15
Post. Balance
Date Item Ref. Dr. Cr. Dr. Cr.

2012
Oct. 1 ................................. 1 4,800 ............. 4,800 .............
31 Adjusting ................ 3 ............ 1,600 3,200 .............

Prepaid Insurance 16
2012
Oct. 2 ................................. 1 3,000 ............. 3,000 .............
31 Adjusting ................ 3 ............ 250 2,750 .............

Office Equipment 18
2012
Oct. 1 ................................. 1 9,000 ............. 9,000 .............
5 ................................. 1 2,000 ............. 11,000 .............

Accumulated Depreciation 19
2012
Oct. 31 Adjusting ................ 3 ............ 300 ............ 300

Accounts Payable 21
2012
Oct. 5 ................................. 1 ............ 2,000 ............ 2,000
12 ................................. 1 1,000 ............. ............ 1,000

Salaries Payable 22
2012
Oct. 31 Adjusting ................ 3 ............ 250 ............ 250

Unearned Fees 23
2012
Oct. 4 ................................. 1 ............ 4,000 ............ 4,000
31 Adjusting ................ 3 2,200 ............. ............ 1,800
Prob. 4–6A (Continued)

Shane Banovich, Capital 31

Post. Balance
Date Item Ref. Dr. Cr. Dr. Cr.

2012
Oct. 1 ................................. 1 ............ 28,500 ............ 28,500
31 Closing .................... 4 ............ 23,500 ............ 52,000
31 Closing .................... 4 8,000 ............. ............ 44,000

Shane Banovich, Drawing 32

2012
Oct. 31 ................................. 2 8,000 ............. 8,000 .............
31 Closing .................... 4 ............ 8,000 — —

Income Summary 33
2012
Oct. 31 Closing .................... 4 ............ 30,400 ............ 30,400
31 Closing .................... 4 6,900 ............. ............ 23,500
31 Closing .................... 4 23,500 ............. — —

Fees Earned 41
2012
Oct. 12 ................................. 1 ............ 6,000 ............ 6,000
17 ................................. 2 ............ 7,500 ............ 13,500
20 ................................. 2 ............ 5,200 ............ 18,700
24 ................................. 2 ............ 3,700 ............ 22,400
31 ................................. 2 ............ 2,800 ............ 25,200
31 ................................. 2 ............ 3,000 ............ 28,200
31 Adjusting ................ 3 ............ 2,200 ............ 30,400
31 Closing .................... 4 30,400 ............. — —

Salary Expense 51
2012
Oct. 14 ................................. 1 1,000 ............. 1,000 .............
27 ................................. 2 1,000 ............. 2,000 .............
31 Adjusting ................ 3 250 ............. 2,250 .............
31 Closing .................... 4 ............ 2,250 — —
Prob. 4–6A (Continued)

Rent Expense 52
Post. Balance
Date Item Ref. Dr. Cr. Dr. Cr.

2012
Oct. 31 Adjusting ................ 3 1,600 ............. 1,600 .............
31 Closing .................... 4 ............ 1,600 — —

Supplies Expense 53
2012
Oct. 31 Adjusting ................ 3 1,550 ............. 1,550 .............
31 Closing .................... 4 ............ 1,550 — —

Depreciation Expense 54
2012
Oct. 31 Adjusting ................ 3 300 ............. 300 .............
31 Closing .................... 4 ............ 300 — —

Insurance Expense 55
2012
Oct. 31 Adjusting ................ 3 250 ............. 250 .............
31 Closing .................... 4 ............ 250 — —

Miscellaneous Expense 59
2012
Oct. 10 ................................. 1 400 ............. 400 .............
29 ................................. 2 250 ............. 650 .............
31 ................................. 2 300 ............. 950 .............
31 Closing .................... 4 ............ 950 — —
Prob. 4–6A (Continued)

3.
EPIC CONSULTING
Unadjusted Trial Balance
October 31, 2012
Debit Credit
Balances Balances
Cash................................................................................ 18,500
Accounts Receivable .................................................... 11,200
Supplies ......................................................................... 2,250
Prepaid Rent .................................................................. 4,800
Prepaid Insurance ......................................................... 3,000
Office Equipment ........................................................... 11,000
Accumulated Depreciation ........................................... 0
Accounts Payable .......................................................... 1,000
Salaries Payable ............................................................ 0
Unearned Fees ............................................................... 4,000
Shane Banovich, Capital ............................................... 28,500
Shane Banovich, Drawing............................................. 8,000
Fees Earned ................................................................... 28,200
Salary Expense .............................................................. 2,000
Rent Expense ................................................................. 0
Supplies Expense .......................................................... 0
Depreciation Expense ................................................... 0
Insurance Expense ........................................................ 0
Miscellaneous Expense ................................................ 950
61,700 61,700
Prob. 4–6A (Continued)

5. Optional (Appendix)
A B C D E F G H I J K
1 EPIC CONSULTING
2 End-of-Period Spreadsheet (Work Sheet)
3 For the Month Ended October 31, 2012
4 Unadjusted Adjusted Income Balance
5 Trial Balance Adjustments Trial Balance Statement Sheet
6 Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
7 Cash 18,500 18,500 18,500
8 Accounts Receivable 11,200 11,200 11,200
9 Supplies 2,250 (b) 1,550 700 700
10 Prepaid Rent 4,800 (e) 1,600 3,200 3,200
11 Prepaid Insurance 3,000 (a) 250 2,750 2,750
12 Office Equipment 11,000 11,000 11,000
13 Accum. Depreciation (c) 300 300 300
14 Accounts Payable 1,000 1,000 1,000
15 Salaries Payable (d) 250 250 250
16 Unearned Fees 4,000 (f) 1,800 1,800
17 Shane Banovich, Capital 28,500 2,200 28,500 28,500
18 Shane Banovich, Drawing 8,000 8,000 8,000
19 Fees Earned 28,200 (f) 2,200 30,400 30,400
20 Salary Expense 2,000 (d) 250 2,250 2,250
21 Rent Expense (e) 1,600 1,600 1,600
22 Supplies Expense (b) 1,550 1,550 1,550
23 Depreciation Expense (c) 300 300 300
24 Insurance Expense (a) 250 250 250
25 Miscellaneous Expense 950 950 950
26 61,700 61,700 6,150 6,150 62,250 62,250 6,900 30,400 55,350 31,850
27 Net income 23,500 ______ _____ _ 23,500
28 30,400 30,400 55,350 55,350
Prob. 4–6A (Continued)

6. JOURNAL Page 3
Post.
Date Ref. Debit Credit
2012 Adjusting Entries
Oct. 31 Insurance Expense ..................................... 55 250
Prepaid Insurance ................................. 16 250
Insurance expired.

31 Supplies Expense ....................................... 53 1,550

Supplies ................................................. 14 1,550
Supplies used ($2,250 – $700).

31 Depreciation Expense ................................. 54 300

Accumulated Depreciation ................... 19 300
Equipment depreciation.

31 Salary Expense............................................ 51 250

Salaries Payable .................................... 22 250
Accrued salaries.

31 Rent Expense .............................................. 52 1,600

Prepaid Rent .......................................... 15 1,600
Rent expired.

31 Unearned Fees ............................................ 23 2,200

Fees Earned ........................................... 41 2,200
Unearned fees earned
($4,000 – $1,800).
Prob. 4–6A (Continued)

7.
EPIC CONSULTING
Adjusted Trial Balance
October 31, 2012
Debit Credit
Balances Balances
Cash................................................................................ 18,500
Accounts Receivable .................................................... 11,200
Supplies ......................................................................... 700
Prepaid Rent .................................................................. 3,200
Prepaid Insurance ......................................................... 2,750
Office Equipment ........................................................... 11,000
Accumulated Depreciation ........................................... 300
Accounts Payable .......................................................... 1,000
Salaries Payable ............................................................ 250
Unearned Fees ............................................................... 1,800
Shane Banovich, Capital ............................................... 28,500
Shane Banovich, Drawing............................................. 8,000
Fees Earned ................................................................... 30,400
Salary Expense .............................................................. 2,250
Rent Expense ................................................................. 1,600
Supplies Expense .......................................................... 1,550
Depreciation Expense ................................................... 300
Insurance Expense ........................................................ 250
Miscellaneous Expense ................................................ 950
62,250 62,250
Prob. 4–6A (Continued)

8.
EPIC CONSULTING
Income Statement
For the Month Ended October 31, 2012
Fees earned ................................................................. $30,400
Expenses:
Salary expense ........................................................ $2,250
Rent expense ........................................................... 1,600
Supplies expense .................................................... 1,550
Depreciation expense ............................................. 300
Insurance expense .................................................. 250
Miscellaneous expense ........................................... 950
Total expenses..................................................... 6,900
Net income ................................................................... $23,500

EPIC CONSULTING
Statement of Owner’s Equity
For the Month Ended October 31, 2012
Shane Banovich, capital, October 1, 2012 ................. $ 0
Additional investments during the month ................. 28,500
Total .............................................................................. $28,500
Net income for the month ........................................... $23,500
Less withdrawals ......................................................... 8,000
Increase in owner’s equity .......................................... 15,500
Shane Banovich, capital, October 31, 2012 ............... $44,000
Prob. 4–6A (Continued)

EPIC CONSULTING
Balance Sheet
October 31, 2012
Assets Liabilities
Current assets: Current liabilities:
Cash ............................ $18,500 Accounts payable ... $1,000
Accounts receivable .. 11,200 Salaries payable ..... 250
Supplies...................... 700 Unearned fees ......... 1,800
Prepaid rent................ 3,200 Total liabilities ........... $ 3,050
Prepaid insurance ..... 2,750
Total current assets $36,350
Property, plant, and
equipment: ................. Owner’s Equity
Office equipment ....... $11,000 Shane Banovich, capital 44,000
Less accum. depr. ..... 300
Total property, plant,
and equipment ........ 10,700 Total liabilities and
Total assets .................. $47,050 owner’s equity ........ $47,050
Prob. 4–6A (Concluded)

9. JOURNAL Page 4
Post.
Date Ref. Debit Credit
2012 Closing Entries
Oct. 31 Fees Earned ................................................. 41 30,400
Income Summary................................... 33 30,400
31 Income Summary ........................................ 33 6,900
Salary Expense ...................................... 51 2,250
Rent Expense ......................................... 52 1,600
Supplies Expense .................................. 53 1,550
Depreciation Expense ........................... 54 300
Insurance Expense ................................ 55 250
Miscellaneous Expense ........................ 59 950
31 Income Summary ........................................ 33 23,500
Shane Banovich, Capital ....................... 31 23,500
31 Shane Banovich, Capital ............................ 31 8,000
Shane Banovich, Drawing .................... 32 8,000

10.
EPIC CONSULTING
Post-Closing Trial Balance
October 31, 2012
Debit Credit
Balances Balances
Cash.............................................................................. 18,500
Accounts Receivable .................................................. 11,200
Supplies ....................................................................... 700
Prepaid Rent ................................................................ 3,200
Prepaid Insurance ....................................................... 2,750
Office Equipment ......................................................... 11,000
Accumulated Depreciation ......................................... 300
Accounts Payable ........................................................ 1,000
Salaries Payable .......................................................... 250
Unearned Fees ............................................................. 1,800
Shane Banovich, Capital ............................................. 44,000
47,350 47,350