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Below is an incomplete year-end worksheet which you will have to complete 1 Make the necessary adjustments, given the information items a through g. 2
Below is an incomplete year-end worksheet which you will have to complete | |||||||||||||
1 | Make the necessary adjustments, given the information items a through g. | ||||||||||||
2 | Once the worksheet is completed make the gen. journal closing entries. | ||||||||||||
Trial Balance | ----Adjustments---- | Adjusted Trial Balance | Inc. Statement | Balance Sheet | |||||||||
Debit | Credit | adj. ref. | Debit | Credit | Debit | Credit | Debit | Credit | Debit | Credit | |||
Cash | 20000 | ||||||||||||
Accounts receivable | 24000 | ||||||||||||
Supplies | 800 | ||||||||||||
Prepaid Insurance | 2960 | ||||||||||||
Prepaid Rent | 9000 | ||||||||||||
Equipment | 42000 | ||||||||||||
Accum. Depreciation, Equip. | 18500 | ||||||||||||
Accounts Payable | 14600 | ||||||||||||
Salary Payable | |||||||||||||
Unearned Service revenue | 750 | ||||||||||||
Betty, Jones, Capital | 105000 | ||||||||||||
Betty, Jones, Withdrawals | 41000 | ||||||||||||
Service Revenue | 141710 | a and b | |||||||||||
Depreciation Expense | |||||||||||||
Supplies Exp. | |||||||||||||
Salary Expense | 136000 | ||||||||||||
Utilities Exp. | 4800 | ||||||||||||
Insurance Exp. | |||||||||||||
Rent Exp. | |||||||||||||
Totals | 280560 | 280560 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Profit/Loss | |||||||||||||
Totals | 0 | 0 | 0 | 0 | |||||||||
a. | $620 of revenue has been earned but not yet recorded nor collected. | ||||||||||||
b. | $175 of the Unearned serv. Rev. account balance has now been earned | ||||||||||||
c. | The office we rent has been in use all 12 months this past year and the monthly rental rate has been 600 per month for many years. | ||||||||||||
d. | A year-end inventory reveals there is now 275 supplies on hand | ||||||||||||
e. | The equipment is estimated to last 8 years. All the equipment was bought a few years ago. | ||||||||||||
f. | At year end we owe our employees $900 in accrued compensation. | ||||||||||||
g. | Our current insurance policy will expire after 2 months into next year. Insurance Costs us 370 per month. |
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