6.500 2.500 Exercise 2 Dana Bowen Company is a small business owned by Dana Bowen. She provided us with the documents for the year ended April 30, 2022. She is concerned that there are a number of errors in all documents made by her accountants Required: Determine what those crrots are and correctly recalculate amounts in all documents. Journal Entries: a) Cash Dana Bowen. Capital 6500 b) Equipment 2.500 Dana Bowen, Capital c) Rent Expense 400 Cash 400 d) Cash 400 Fees Eamed 400 c) Accounts Receivable 1.250 Fees Earned 1.250 1) Supplies 870 Accounts Payable 870 a) Wages Expense 420 Cash 420 h) Prepaid Insurance 1.940 Cash 1.980 i) Cash 2.500 Fees Eamed 2.500 Miscellaneous Expense SO Cash k) Dana Bowen, Drawing 350 Cash 350 1) Cash 930 Unearned Revenue 930 Adjusting Entries: m) Supplies Expense 540 Supplies $40 n) Accounts Receivable 385 Fees Eamed 385 o) Insurance Expense 725 Prepaid Insurance 725 p) Accumulated Depreciation 130 Depreciation Expense 4) Wages Expense 225 Wages Payable 225 1) Unearned Revenues Fees Eamed $90 SO 590 = Cash Prepaid Insurance Supplies Accounts Receivable 1.250 18 6 500 1.9.40 400 546 724 400 420 1.946 2.500 50 356 930 Equipment Accumulated Depreciation Accounts Payable Wages Payable 2.500 19 Uncamed Revenues Dana Bowen Drawing 350 Income Summary Dana Bowen, Capital 6,500 2.500 994 590 Wages Expense 420 225 Rent Expense 400 Supplies Expense 540 Fees Earned 900 1.250 2.so 385 590 Insurance Expense 725 Depreciation Expense 130 Miscellaneous Expense 150 Dana Bowen Company End-of-Period Spreadsheet For the Year Ended April 30 Adjusted Trial Trial Balance Adjustments Balance Debit Credit Debit Credit Debit Credit Cash 7.170 7.170 Accounts Receivable 1.250 385 2.300 Prepaid Insurance 1.9401 725 1.215 Supplies 870 540 330 Equipment 2.500 2.500 Accumulated Depreciation 130 310 Unearned Revenue 93 590 140 Accounts Payable 870 870 Wages Payable 225 225 Dana Bowen Capital 9.001 9,000 Dana Bowen, Drawing 350 Fees Eamed 2.900 2.725 5,620 Wage Expense 400 225 645 Rent Expense 400 Supplies se 5:40 540 Insurance Expense 725 225 Depreciation Expanse 130 130 Miscellaneous Expense SO 15.930 13,700 2.594 4,349 16,899 16.02 Totals 350 δΈ 400 Dana Bowen Company Income Statement For the Year Ended April 30 Fees carned $3,629 II Expenses: Insurance expense $72: Wages expense 6441 Supplies expense 340 Rent expense 406 Depreciation expense 1340 Miscellaneous expense 2401 Total expenses Net income Dana Bowen Company Statement of Owner's Equity For the Year Ended April 30 Dana Bowen capital, May 1 S Investment S 9,000 3.133 (350 Net income for the period Less withdrawals Total change in owner's equity Dana Bowen, capital, April 30 11.785 $11.785 = Assets Current assets: Dana Bowen Company Balance Sheet April 30 Liabilities Current liabilities: $7.170 Accounts payable 1.635 Wages payable 330 Uncarned revenues IS Supplies SI0.850 Total liabilities S 870 225 340 330 $ 1.435 Cash Accounts receivable Supplies Prepaid insurance Total current assets Property, plant,& equipment Equipment accumulated by Total assets $2.500 2010 9000 Owner's Equity Dana Bowen, capital Total liabilities and owner's equity S12.200 SOAS Closing Entries: 3.625 5.625 2,490 ) Fees Eamed Income Summary 1) Income Summary Wages Expense Rent Expense Supplies Expense Insurance Expense Depreciation Expense Miscellaneous Expense u) Income Summary Dana Bowen, Capital v) Dana Bowen, Drawing Dana Bowen, Drawing 645 400 540 725 130 SO 1.135 1.135 350 350 Dana Bowen Company Post-Closing Trial Balance April 30 Cash 7,170 Accounts Receivable 2.500 Prepaid Insurance 1.215 Supplies 330 Equipment 2,500 Accumulated Depreciation 310 Unearned Revenues 340 Accounts Payable 1870 Wages Payable 225 Dana Bowen, Capital 11785 Total 13,715 13,530
