Based on the data in Exercise 4-25, prepare the closing entries for Alert Security Services Co.

Based on the data in Exercise 4-25, prepare the closing entries for Alert Security Services Co.


Answer:

2014 Closing Entries
Oct. 31 Fees Earned 213
Income Summary 213
31 Income Summary 148
Wages Expense 111
Rent Expense 12
Insurance Expense 10
Utilities Expense 6
Supplies Expense 4
Depreciation Expense 3
Miscellaneous Expense 2
31 Income Summary 65
Brenda Schultz, Capital 65
31 Brenda Schultz, Capital 8
Brenda Schultz, Drawing 8

Based on the data in Exercise 4-24, prepare the adjusting entries for Alert Security Services Co.

Based on the data in Exercise 4-24, prepare the adjusting entries for Alert Security Services Co.


Answer:

2014 Adjusting Entries
Oct. 31 Accounts Receivable 13
Fees Earned 13
Accrued fees.
31 Supplies Expense 4
Supplies 4
Supplies used ($8 – $4).
31 Insurance Expense 10
Prepaid Insurance 10
Insurance expired.
31 Depreciation Expense 3
Accumulated Depreciation—Equipment 3
Equipment depreciation.
31 Wages Expense 1
Wages Payable 1

Based on the data in Exercise 4-25, prepare an income statement, statement of owner’s equity, and balance sheet for Alert Security Services Co

Based on the data in Exercise 4-25, prepare an income statement, statement of owner’s equity, and balance sheet for Alert Security Services Co.


Answer:

ALERT SECURITY SERVICES CO.
Income Statement
For the Year Ended October 31, 2014
Fees earned $213
Expenses:
Wages expense $111
Rent expense 12
Insurance expense 10
Utilities expense 6
Supplies expense 4
Depreciation expense 3
Miscellaneous expense 2
Total expenses 148
Net income $ 65
ALERT SECURITY SERVICES CO.
Statement of Owner’s Equity
For the Year Ended October 31, 2014
Brenda Schultz, capital, November 1, 2013 $260
Net income $65
Less withdrawals 8
Increase in owner’s equity 57
Brenda Schultz, capital, October 31, 2014 $317




ALERT SECURITY SERVICES CO.
Balance Sheet
October 31, 2014
Assets Liabilities
Current assets: Current liabilities:
Cash $ 12 Accounts payable $36
Accounts receivable 103 Wages payable 1
Supplies 4 Total liabilities $ 37
Prepaid insurance 2
Total current assets $121
Property, plant, and equipment:
Land $190
Equipment $50
Less accumulated depreciation 7 43 Owner’s Equity
Total property, plant, and Brenda Schultz, capital 317
equipment 233 Total liabilities and owner’s
Total assets $354 equity $354

Alert Security Services Co. offers security services to business clients. Complete the following end-of-period spreadsheet (work sheet) for Alert Security Services Co.

Alert Security Services Co. offers security services to business clients. Complete the following end-of-period spreadsheet (work sheet) for Alert Security Services Co.


Alert Security Services Co.
End-of-Period Spreadsheet (Work Sheet)
For the Year Ended October 31, 2014
Adjusted
Trial Balance
Income
Statement
Balance
Sheet
Account Title Dr. Cr. Dr. Cr. Dr. Cr.
Cash 12
Accounts Receivable 103
Supplies 4
Prepaid Insurance 2
Land 190
Equipment 50
Accum. Depr.—Equipment 7
Accounts Payable 36
Wages Payable 1
Brenda Schultz, Capital 260
Brenda Schultz, Drawing 8
Fees Earned 213
Wages Expense 111
Rent Expense 12
Insurance Expense 10
Utilities Expense 6
Supplies Expense 4
Depreciation Expense 3
Miscellaneous Expense 2
517 517
Net income (loss)


Answer:

ALERT SECURITY SERVICES CO.
End-of-Period Spreadsheet (Work Sheet)
For the Year Ended October 31, 2014
Account Title
Adjusted
Trial Balance
Income
Statement
Balance
Sheet
Debit Credit Debit Credit Debit Credit
Cash 12 12
Accounts Receivable 103 103
Supplies 4 4
Prepaid Insurance 2 2
Land 190 190
Equipment 50 50
Accum. Depr.—Equipment 7 7
Accounts Payable 36 36
Wages Payable 1 1
Brenda Schultz, Capital 260 260
Brenda Schultz, Drawing 8 8
Fees Earned 213 213
Wages Expense 111 111
Rent Expense 12 12
Insurance Expense 10 10
Utilities Expense 6 6
Supplies Expense 4 4
Depreciation Expense 3 3
Miscellaneous Expense 2 2
Totals 517 517 148 213 369 304
Net income (loss) 65 65
213 213 369 369

Alert Security Services Co. offers security services to business clients. The trial balance for Alert Security Services Co

Alert Security Services Co. offers security services to business clients. The trial balance for Alert Security Services Co. has been prepared on the end-of-period spreadsheet (work sheet) for the year ended October 31, 2014, shown below.



Alert Security Services Co.
End-of-Period Spreadsheet (Work Sheet)
For the Year Ended October 31, 2014
Unadjusted
Trial Balance Adjustments
Adjusted
Trial Balance
Account Title Dr. Cr. Dr. Cr. Dr. Cr.
Cash 12
Accounts Receivable 90
Supplies 8
Prepaid Insurance 12
Land 190
Equipment 50
Accum. Depr.—Equipment 4
Accounts Payable 36
Wages Payable 0
Brenda Schultz, Capital 260
Brenda Schultz, Drawing 8
Fees Earned 200
Wages Expense 110
Rent Expense 12
Insurance Expense 0
Utilities Expense 6
Supplies Expense 0
Depreciation Expense 0
Miscellaneous Expense 2
500 500


The data for year-end adjustments are as follows:

a. Fees earned, but not yet billed, $13.
b. Supplies on hand, $4.
c. Insurance premiums expired, $10.
d. Depreciation expense, $3.
e. Wages accrued, but not paid, $1.

Enter the adjustment data, and place the balances in the Adjusted Trial Balance columns.


Answer:

ALERT SECURITY SERVICES CO.
End-of-Period Spreadsheet (Work Sheet)
For the Year Ended October 31, 2014
Account Title
Unadjusted
Trial Balance Adjustments
Adjusted
Trial Balance
Debit Credit Debit Credit Debit Credit
Cash 12 12
Accounts Receivable 90 (a) 13 103
Supplies 8 (b) 4 4
Prepaid Insurance 12 (c) 10 2
Land 190 190
Equipment 50 50
Accum. Depr.—Equipment 4 (d) 3 7
Accounts Payable 36 36
Wages Payable 0 (e) 1 1
Brenda Schultz, Capital 260 260
Brenda Schultz, Drawing 8 8
Fees Earned 200 (a) 13 213
Wages Expense 110 (e) 1 111
Rent Expense 12 12
Insurance Expense 0 (c) 10 10
Utilities Expense 6 6
Supplies Expense 0 (b) 4 4
Depreciation Expense 0 (d) 3 3
Miscellaneous Expense 2 2
Totals 500 500 31 31 517 517