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4. Using the information shown in P3-20B on page 180 in your textbook, prepare an Adjusting Worksheet on the next tab in this file. Note
4. Using the information shown in P3-20B on page 180 in your textbook, prepare an Adjusting Worksheet | ||||||||
on the next tab in this file. Note that the file tab is already labeled for you and a formatted worksheet | ||||||||
is already provided there. Begin by entering the unadjusted account balances in the Unadjusted Trial | ||||||||
columns of this worksheet. Be sure to include column totals, as is appropriate for any trial balance. | ||||||||
5. Prepare adjusting entries for the 6 items listed in the textbook on page 180 for this problem. | ||||||||
Begin by preparing the entries in proper journal form on the Journal tab of this worksheet. | ||||||||
Label each entry 1 through 6 as presented in the textbook. It is not necessary to use parentheses. | ||||||||
Then transfer each of the entries - both the debit and credit sides - to the Adjustments columns of the | ||||||||
Adjusting Worksheet. Be sure to label both sides of each entry, as shown in the example on page 150. | ||||||||
Note that your labels need to be entered into columns D and F for the debits and credits, respectively. | ||||||||
6. Consider this additional information: While preparing Sharp Outfitters' July 31 bank reconciliation, | ||||||||
a $30 bank service charge was noted that has not yet been recorded. In addition, a $140 check | ||||||||
for advertising expense was incorrectly recorded as $1,400. Additional adjusting entries are needed | ||||||||
on both the journal and worksheet for these two reconciling items. Label these entries 7 and 8. | ||||||||
7. Populate the remaining columns of the Adjusting Worksheet. Your completed worksheet should look | ||||||||
similar to Exhibit 3B-2 in your textbook, with all relevant headings, columns, and totals completed. | ||||||||
8. Pay attention to formatting, using the examples in the textbook. In particular: | ||||||||
- Do not add any accounts, rows, or columns to the worksheet, and do not adjust the width of the columns. | ||||||||
- Use dollar signs (only where appropriate, as shown in the textbook example) when formatting numbers. | ||||||||
- Use comma separators when formatting numbers greater than 1,000. | ||||||||
- Round all amounts (if necessary) to the nearest whole dollar and DO NOT show .00 decimals (cents). | ||||||||
- Use underlines and double underlines where appropriate (as shown in the textbook example). | ||||||||
9. Check Figures: Adjusted Trial Balance totals should be $161,450; Net Income should be $35,630.
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