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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.

image text in transcribedimage text in transcribed

image text in transcribedimage text in transcribed

P3-20B. Worksheet The July 31 unadjusted trial balance of Sharp Outfitters, a firm renting various types of equipment to canoeists and campers, follows. SHARP OUTFITTERS Unadjusted Trial Balance July 31 Debit Credit $ 3,750 8,600 3,200 $16,500 3,500 8,850 33,000 9,000 1,200 Rental fees earned... 78,150 28,800 3,300 2,300 850 $149,000 $149,000

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