Question
I need assistance with this: A six-column table for JKL Company follows. The first two columns contain the unadjusted trial balance for the company as
I need assistance with this:
A six-column table for JKL Company follows. The first two columns contain the unadjusted trial balance for the company as of July 31, 2017. The last two columns contain the adjusted trial balance as of the same date.
Required
1. Analyze the differences between the unadjusted and adjusted trial balances to determine the eight adjustments that likely were made. Show the results of your analysis by inserting these adjustment amounts in the table's two middle columns. Label each adjustment with a letter a through h and provide a short description of each.
2. Use the information in the adjusted trial balance to prepare the company's (a) income statement and its statement of owner's equity for the year ended July 31, 2017 [Note: J. Logan, Capital at July 31, 2016, was $40,000, and the current-year withdrawals were $5,000], and (b) the balance sheet as of July 31, 2017.
Account Unadjusted Trial Balance Adjustments Adjusted Trial Balance
Cash $84,550 $84,550
Accounts receivable11,000 25,000
Office supplies17,800 3,000
Prepaid insurance 8,140 3,360
Office equipment 88,000 88,000
Accumulated depreciationOffice equipment
$24,000
$32,000Accounts payable
11,100
12,000Interest payable
0
2,500Salaries payable
0
5,000Unearned consulting fees
20,000
16,000Long-term notes payable
50,000
50,000Common stock
27,600
27,600Retained earnings
18,400
18,400Dividends10,000
10,000
Consulting fees earned
164,000
182,000Consulting fees earned (Unearned fees adjusted)
Depreciation expenseOffice equipment 0
8,000
Salaries expense67,240
72,240
Interest expense1,270
3,770
Insurance expense0
4,780
Rent expense14,660
14,660
Office supplies expense0
14,800
Advertising expense12,440
13,340
Totals$315,100$315,100
$345,500$345,500
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