ANN SIMPSON,DESIGNER Unadjusted Trial Balance November 30, 2018 Account Title Cash Balance Debit Credit $23,400 Inventory $60,000 Accounts Receivable 1,100 Office Supplies 5,000 Prepaid Insurance 3,000 Furniture 1,800 Land 24,000 Accounts Payable $900 Utilities Payable 600 Unearned Revenue 24,000 Common Stock 73,800 Dividends 4,000 Service Revenue Cost of goods sold Salaries Expense Rent Expense Utilities Expense 57,000 25,000 6,000 2,000 1,000 Total $ 156,300 $156,300 Adjusting Entries 1. An inventory of supplies showed $4,000 were used up. 2. There was $900 of depreciation on Furniture 3. $3,000 of insurance was purchased for 12 months. 7 months of insurance was used. 4. Performed $6,000 of services that was paid for in advance 5. On last day of the month, performed $1,900 of services for new customer and will be paid next month 6. Happy cleaners provided $650 of cleaning services on the last day of the month. They will be paid next month. 7. An inventory count revealed there was $3,510 of inventory shrinkage 8. The company estimates bad debt expense to be 4% of credit sales. Assume all sales are made on credit. General Journal Date Adj 1 Adj2 Adj3 Adj4 Adj5 Adj6 Adj7 Adj8 Accounts and Explanation Debit Credit General Ledger (starting with balances from unadjusted trial balance) Cash Unadj Bal. 23,400 Bal. 23,400 Accounts Receivable Unadj Bal. 1,100 Adj5 Bal.. Accounts Payable 900 Unadj Bal. Adj6 900 Bal. Utilities Payable 600 Unadj Bal. 1,100 600 Bal. Office Supplies Unearned Revenue Unadj Bal. 5,000 Adj1 Adj 4 24,000 Unadj Bal. Bal. 5,000 Unadj Bal. Bal. Prepaid Insurance 3,000 Adj3 24,000 Bal. Common Stock 73,800 Unadj Bal. 3,000 73,800 Bal. Land Dividends Unadj Bal. 24,000 Unadi Bal 4,000 Bal. 24,000 Bal. 4,000 Furniture Service Revenue or Sales Revenue Unadj Bal. 1,800 57,000 Unadj Bal. Adj4 Adj5 Bal. 1,800 57,000 Bal. Salary Expense Utilities Expense Undadj 6,000 Unadj Bal 1,000 Bal. 6,000 Bal. 1,000 Supplies Expense Rent Expense Adj1 Unadj Bal 2,000 Bal. 0 Bal. 2,000 Depreciation Expense- Furniture Accumulated Depreciation-Furniture Adj2 Bal. 0 Insurance expense 0 Bal. Cleaning expense Adj2 Adj3 Bal. Adj6 0 Bal. Unadj Bal. Cost of goods sold 25,000 Inventory Unadj Bal 60,000 0 Adj7 Adj7 0 Bal. 25,000 Bal. 60,000 Bad Debt Expense Allowance for Doubtful Accounts Unadj Bal. Unadj Bal. Adj8 Adj8 Bal. 0 0 Bal. Adjusted Trial Balance ANN SIMPSON DESIGNER Adjusted Trial Balance Account Title Cash Inventory December 31, 2018 Accounts Receivable Allowance for Doubtful Accounts Office Supplies Prepaid Insurance Land Furniture Accumulated Depreciation-Furniture Accounts Payable Utilities Payable Unearned Revenue Common Stock Dividends Service Revenue or Sales Revenue Cost of goods sold Utilities Expense Rent Expense Cleaning expense Salary Expense Supplies Expense Depreciation Expense- Furniture Insurance expense Bad debt expense Total Balance Debit Credit Revenues: Service Revenue or Sales Revenue Expenses: Cost of goods sold Utilities Expense Rent Expense Cleaning expense Salary Expense Supplies Expense Depreciation Expense- Furniture Insurance expense Bad debt expense Total Expenses Net Income ANN SIMPSON DESIGNER Income Statement Year Ended December 31, 2018 Beginning, January 1, 2018 Net income for the year Dividends ANN SIMPSON DESIGNER Statement of Owner's Equity Year Ended December 31, 2018 Ending Balance, December 31, 2018 ANN SIMPSON DESIGNER Balance Sheet December 31, 2018 Assets Current Assets: Cash Inventory Net Accounts Receivable Office Supplies Prepaid Insurance Total Current Assets Property, Plant, and Equipment Land Furniture Less: Accumulated Depreciation-Furniture Total Property, Plant, and Equipment Total Assets Current Liabilities: Accounts Payable Utilities Payable Unearned Revenue Total Current Liabilities Total Liabilities Liabilities Stockholders' Equity Common Stock Owner's Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity