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ing current, quick, and debt to equity ratios LOZ duo. Refer to Appendix 111 for Indigos Consolidated Balance Sheet as at Ma
CHAPTER 4 Completing the Accounting Cycle and Classifying Accounts Required 1. Prepare adjusting journal entries. 2. Prepare
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Answer 1
Adjusting Entries
Event Account Debit $ Credit $
a. Wages Expense        1,600.00
Wages Payable          1,600.00
b. Officer Supplies Expense        5,400.00
Office Supplies          5,400.00
(This is $ 9,000- $ 3,600)
c. Interest Expense        2,500.00
Interest Payable          2,500.00
d. Membership Revenue      32,000.00
Unearned membership Revenue        32,000.00
e. Accounts Receivable      24,000.00
Membership Revenue        24,000.00
f. Depreciation Expense- Equipment      30,000.00
Accumulated Depreciation        30,000.00
Answer 2
Reversal of Adjusting Entries
Event Account Debit $ Credit $
a. Wages Payable 1,600.00
Wages Expense 1,600.00
c. Interest Payable 2,500.00
Interest Expense 2,500.00
Answer 3
Collection and Payment Entries
Event Account Debit $ Credit $
a. Wages Expense     2,400.00
Cash     2,400.00
c. Interest Expense     3,000.00
Cash     3,000.00
e. Cash 24,000.00
Accounts Receivable 24,000.00
e. Cash 14,000.00
Membership Revenue 14,000.00
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