1) Reen Lawns, Inc., performs adjusting entries every month, but closes its accounts only at year-end. The company’s year-end adjusted trial balance dated December 31, 2015, was: GREEN LAWNS, INC. Adjusted Trial Balance December 31, 2015   Cash $  182,200     Accounts receivable 9,000     Supplies  600     Equipment  24,000     Accumulated depreciation: equipment $ 10,000     Accounts payable  3,000     Income taxes payable  7,000     Capital stock  50,000     Retained earnings  90,000     Dividends  4,000     Lawn care revenue earned 192,000     Salary expense 104,000     Supply expense  2,400     Advertising expense  600     Depreciation expense: equipment  2,000     Income taxes expense  23,600   $ 352,000   $ 352,000   a-1. Prepare an income statement for the year ended December 31, 2015. a-2. Prepare a statement of retained earnings for the year ended December 31, 2015. a-3. Prepare the company's balance sheet dated December 31, 2015. (Amounts to be deducted should be indicated by a minus sign.) b. Does the company appear to be liquid? No Yes c. Has the company been profitable in the past? No Yes 2) Reen Lawns, Inc., performs adjusting entries every month, but closes its accounts only at year-end. The company’s year-end adjusted trial balance dated December 31, 2015, was: GREEN LAWNS, INC. Adjusted Trial Balance December 31, 2015   Cash $  182,200     Accounts receivable  9,000     Supplies  600     Equipment  24,000     Accumulated depreciation: equipment $  10,000     Accounts payable  3,000     Income taxes payable  7,000     Capital stock  50,000     Retained earnings  90,000     Dividends 4,000     Lawn care revenue earned  192,000     Salary expense  104,000     Supply expense  2,400     Advertising expense  600     Depreciation expense: equipment  2,000     Income taxes expense  23,200   $  352,000   $  352,000   a. Prepare all necessary closing entries at December 31, 2015.  1. Record the entry to close Lawn Care Revenue earned to income summary 2. REcord the entry to close all expense accounts to income summary 3. Record the entry to transfer net income earned in 2015 to retained earnings account 4. Record the entry to close dividends declared in 2015 to retained earnings account. Prepare an after-closing trial balance dated December 31, 2015. · Record the entry to close all expense accounts to income summary. · Record the entry to close all expense accounts to income summary. 3) Cat Fancy, Inc., has provided the following information from its most current financial statements:   Total revenue $ 125,000     Total expenses 80,000     Total current assets 32,000     Total current liabilities 8,000     Total stockholders' equity, January 1, 2015 74,000     Total stockholders' equity, December 31, 2015 76,000   Compute the company’s net income per ...

1. 1) Reen Lawns, Inc., performs adjusting entries every month,
but closes its accounts only at year-end. The company’s year-
end adjusted trial balance dated December 31, 2015, was:
GREEN LAWNS, INC.
Adjusted Trial Balance
December 31, 2015
Cash
$
182,200
Accounts receivable
9,000
Supplies
600
Equipment
24,000
Accumulated depreciation: equipment
$
10,000
Accounts payable

2. 3,000
Income taxes payable
7,000
Capital stock
50,000
Retained earnings
90,000
Dividends
4,000
Lawn care revenue earned
192,000
Salary expense
104,000
Supply expense
2,400

3. Advertising expense
600
Depreciation expense: equipment
2,000
Income taxes expense
23,600
$
352,000
$
352,000

4. a-1.
Prepare an income statement for the year ended December 31,
2015.
a-2.
Prepare a statement of retained earnings for the year ended
December 31, 2015.
a-3.
Prepare the company's balance sheet dated December 31,
2015. (Amounts to be deducted should be indicated by a minus
sign.)
b.
Does the company appear to be liquid?
No
Yes

5. c.
Has the company been profitable in the past?
No
Yes
2) Reen Lawns, Inc., performs adjusting entries every month,
but closes its accounts only at year-end. The company’s year-
end adjusted trial balance dated December 31, 2015, was:
GREEN LAWNS, INC.
Adjusted Trial Balance
December 31, 2015
Cash
$
182,200
Accounts receivable
9,000

6. Supplies
600
Equipment
24,000
Accumulated depreciation: equipment
$
10,000
Accounts payable
3,000
Income taxes payable
7,000
Capital stock
50,000
Retained earnings
90,000
Dividends

7. 4,000
Lawn care revenue earned
192,000
Salary expense
104,000
Supply expense
2,400
Advertising expense
600
Depreciation expense: equipment
2,000
Income taxes expense
23,200

8. $
352,000
$
352,000
a.
Prepare all necessary closing entries at December 31, 2015.
1. Record the entry to close Lawn Care Revenue earned to
income summary
2. REcord the entry to close all expense accounts to income
summary
3. Record the entry to transfer net income earned in 2015 to
retained earnings account
4. Record the entry to close dividends declared in 2015 to
retained earnings account.
Prepare an after-closing trial balance dated December 31, 2015.
· Record the entry to close all expense accounts to income
summary.
· Record the entry to close all expense accounts to income
summary.

9. 3) Cat Fancy, Inc., has provided the following information from
its most current financial statements:
Total revenue
$
125,000
Total expenses
80,000
Total current assets
32,000
Total current liabilities
8,000
Total stockholders' equity, January 1, 2015
74,000
Total stockholders' equity, December 31, 2015
76,000

10. Compute the company’s net income percentage in 2015
Compute the company’s return on equity in 2015
Compute the company’s current ratio at December 31, 2015.
4)
Terrific Temps fills temporary employment positions for local
businesses. Some businesses pay in
advance for services; others are billed after services have been
performed. Advanced payments are
credited to an account entitled Unearned Fees. Adjusting entries
are performed on a monthly basis.
An unadjusted trial balance dated December 31, 2015, follows.
(Bear in mind that adjusting entries
have already been made for the first 11 months of 2015, but not
for December.)
TERRIFIC TEMPS
UNADJUSTED TRIAL BALANCE
DECEMBER 31, 2015
Cash
$
27,020
Accounts receivable
59,200

11. Unexpired insurance
900
Prepaid rent
3,000
Office supplies
600
Equipment
60,000
Accumulated depreciation: equipment
$
29,500
Accounts payable

12. 4,180
Notes payable
12,000
Interest payable
320
Unearned fees
6,000
Income taxes payable
4,000
Unearned revenue
20,000
Retained earnings

13. 49,000
Capital stock
25,000
Dividends
3,000
Fees earned
75,000
Travel expense
5,000
Insurance expense
2,980
Rent expense
9,900

14. Office supplies expense
780
Utilities expense
4,800
Depreciation expense: equipment
5,500
Salaries expense
30,000
Interest expense
320
Income taxes expense
12,000

15. $
225,000
$
225,000
Other Data

16. 1.
Accrued but unrecorded fees earned as of December 31, 2015,
amount to $1,500.
2.
Records show that $2,500 of cash receipts originally recorded
as unearned fees had been earned as of December 31.
3.
The company purchased a six-month insurance policy on
September 1, 2015, for $1,800.
4.
On December 1, 2015, the company paid its rent through
February 28, 2016.
5.
Office supplies on hand at December 31 amount to $400.
6.
All equipment was purchased when the business first formed.
The estimated life of the equipment at that time was 10 years
(or 120 months).
7.
On August 1, 2015, the company borrowed $12,000 by signing a
six-month, 8 percent note payable. The entire note, plus six
months' accrued interest, is due on February 1, 2016.
8.
Accrued but unrecorded salaries at December 31 amount to
$2,700.
9.
Estimated income taxes expense for the entire year totals
$15,000. Taxes are due in the first quarter of 2016.
Instructions
a.
For each of the numbered paragraphs, prepare the necessary
adjusting entry
1. Record the accrued but uncollected fees earned

17. 2. Record fees earned as of December 31st
3. Record the December insurance expense
4. REcord the December rent expense
5. Record the offices supplies used in December
6. Record the December depreciation expense
7. Record the interest accrued in December
8. Record the salaries accrued in December
9. Record the income taxes accrued in December
B. Determine that amount at which each of the following
accounts will be reported in the company’s 2015 income
statement:
1. FEES EARNED
2. TRAVELS EXPENSE
3. INSURANCE EXPERIENCE
4. RENT EXPENSE
5. OFFICE SUPPLIES EXPERIENCE
6. UTILITIES EXPENSE
7. DEPRECIATION EXPENSE: EQUIPMENT.
8. INTERNET EXPENSE
9. SALARY EXPENSE
10. INCOME TAX EXPENSE.
The unadjusted trial balance reports dividends of $3,000. As of
December 31, 2015, have these dividends been paid?

18. Yes
No