Adams Limited Worksheet 12/31/16
Unadjusted trial balance
Cash	118,500
Accounts Receivable	90,500
Prepaid Insurance	42,000
Office Supplies	4,500
Office Equip.	45,800
Computer Equip.	125,800
Building	365,000
Land	42,500
Accounts Payable	68,400
Deferred revenue	34,000
Mortgage Payable	150,000
Notes Payable	44,000
Capital Stock	50,000
Paid-in Capital in Excess of Par . You should complete a classified balance sheet and a multi-step income statement. Value	256,350
Computer & Consulting Revenue	756,000
Salary Expense	403,000
Advertising Expense	26,500
Repairs & Maint. Expense	40,000
Utitilities expense	54,650
	The unadjusted entries that ive copied above is the spreadsheet that is given to me. You will have to create more entry titles to the amounts when needed. All the title entries were not given.

To: Pat Intern Date: January 3, 2017 From: T. Tough, Supervisor Subject: Adams Limited As you know, we recently took on a new client, Adams Limited. The company has just finished its first year of business, and the owners would like us to prepare GAAP financial statements. I have attached a spreadsheet with Adams Limited unadjusted trial balance, and I need you to prepare adjusting entries, an adjusted trial balance and financial statements for 2016. Also need a balance sheet and income statement to be prepared. Although the accounts are in chart-of-accounts order, they first need to be separated into debit and credit columns. You will need the following information to make the adjusting entries. 1. The prepaid insurance represents a one-year insurance policy purchased on August 1, 2016. 2. A physical inventory showed that only $480 worth of general office supplies remained on hand as of December 31. 3. The annual interest rate on the mortgage payable was 6%. The company took out the 15-year mortgage for its land and building on January 1, 2016, and the first interest payment is due January 1, 2017. 4. The five-year, 8% note payable was issued on July 1, 2016. The entire principal is due at maturity and the interest is due annually on June 30. 5. The balance in the deferred revenue account should be $16,000. 6. The fixed assets have the following useful lives and were all purchased at the beginning of the year. a. Building 30 years with a $5,000 salvage value b. Office equipment 5 years c. Computer equipment 5 years 7. Employees have earned $15,500 since the last pay period. 8. You determine that the appropriate bad debt expense is 1.5% of revenue. 9. Income taxes are 25% of income before taxes.