Instructions

1- Prepare the adjusting entries for these accounts:

- Store supplies (Supplies expense)

- Accumulated Depreciation Store Equipment

- Accumulated Depreciation Delivery Equipment

- Allowance for doubtful accounts (Bad debt expense)

- Note receivable (Interest revenue)

- Note payable (Interest payable)

- Salaries expense

- Insurance Expense

- COGS

You need to set your own assumptions in order to adjust the accounts. Those assumptions should be in consistency with your trial balance.

Example:

The trial balance is showing the following balance for Store Supplies:

Your assumption could be formulated as follows:

1- Store Supplies: An inventory count at the end of the year reveals that $1,800 of supplies are still on hand.

Dr

Cr

Store Supplies

5,500

So the cost of supplies used = 5,500-1,800=3,700 Adjusting entry for supplies:

Dr: Supplies Expense 3,700 Cr: Store Supplies

3,700

You need to do same for the other adjustments. You can follow the textbook pp 106-117.

2- Post the adjusting entries to the ledger

3- Prepare an adjusted trial balance

Page 2 of 3

4- Prepare the worksheet

5- Prepare financial statements: income statement, retained earnings statement and statement of

financial position (classified).

6- Journalize and post the closing entries

7- prepare a post closing trial balance

The trial balance of Lansbury Inc. contained the following accounts at December 31, 2020, the end of the company's fiscal year. Lansbury Inc. Trial Balance December 31, 2020 Debit Credit Cash $52,700 Accounts Receivable 36,400 Allowance for Doubtful Accounts $ 1,700 Notes Receivable 12,500 Merchandise Inventory 45,000 Store Supplies 5,500 Prepaid Insurance 8,200 Store Equipment 85,000 Accumulated Depreciation - Store Equipment 18,000 Delivery Equipment 48,000 Accumulated Depreciation - Delivery Equipment 6,000 Notes Payable 66,200 Accounts Payable 48,500 Share Capital - Ordinary 90,000 Retained Earnings 40,600 Dividends 24,300 Sales 779,000 Sales Returns and Allowances 4,200 Cost of Goods Sold 495,000 Salaries Expense 140,000 Advertising Expense 26,400 Utilities Expense 14,000 Repair Expense 12,100 Delivery Expense 16,700 Rent Expense 24,000 Totals $1,050,000 $1,050,000 Instructions 1. Prepare the adjusting entries for these accounts: - Store supplies (Supplies expensel - Accumulated Depreciation - Store Equipment - Accumulated Depreciation - Delivery Equipment Allowance for doubtlul accounts (Bad debt expense) Note receivable interest revenue) - Note payable Interest payable) Salaries expense Insurance Expense -COGS You need to set your own assumpions in order to achust the accounts Those assumptions should be in consistency with your trial balance Example The trial balance is showing the following balance for Store Supplies Dr Store Supplies 5500 Your assumption could be formulated as follows 1 Store Supplies An twentory count at the end of the year reveals that $1800 dl sugoles are still on hand So the cost of supples used = 5,500-1.800-5,700 Adjusting entry for supplies Dr Supplies Expense 3.700 Or Store Supplies 3,700 You need to do same for the other adjustments. You can follow the textbook pp 106-187 2. Post the agusting entries to the ledger 3. Prepare an adjusted trial balance Page 2 of 3 4 Prepare the worksheet 5. Prepare financial statements: income statement retained eaming statement and statement of financial position (classified) 6 Joumalize and post the dosing entries 7. Prepare a post-closing trial balance The trial balance of Lansbury Inc. contained the following accounts at December 31, 2020, the end of the company's fiscal year. Lansbury Inc. Trial Balance December 31, 2020 Debit Credit Cash $52,700 Accounts Receivable 36,400 Allowance for Doubtful Accounts $ 1,700 Notes Receivable 12,500 Merchandise Inventory 45,000 Store Supplies 5,500 Prepaid Insurance 8,200 Store Equipment 85,000 Accumulated Depreciation - Store Equipment 18,000 Delivery Equipment 48,000 Accumulated Depreciation - Delivery Equipment 6,000 Notes Payable 66,200 Accounts Payable 48,500 Share Capital - Ordinary 90,000 Retained Earnings 40,600 Dividends 24,300 Sales 779,000 Sales Returns and Allowances 4,200 Cost of Goods Sold 495,000 Salaries Expense 140,000 Advertising Expense 26,400 Utilities Expense 14,000 Repair Expense 12,100 Delivery Expense 16,700 Rent Expense 24,000 Totals $1,050,000 $1,050,000 Instructions 1. Prepare the adjusting entries for these accounts: Store supplies (Supplies expenseo Accumulated Depreciation - Store Equipment Accumulated Depreciation - Delivery Equipment Allowance for doubtful accounts (Bad debt expense) - Note receivable (Interest revenue) Note payable (Interest payable) - Salaries expense - Insurance Expense - COGS You need to set your own assumptions in order to adjust the accounts. Those assumptions should be in consistency with your trial balance. Example The trial balance is showing the following balance for "Store Supplies": DI Cr Store Supplies 5,500 Your assumption could be formulated as follows: 1. Store Supplies: An inventory count at the end of the year reveals that $1,800 of supplies are still on hand So the cost of supplies used = 5,500-1,800=3,700 Adjusting entry for supplies Dr. Supplies Expense 3,700 Cr. Store Supplies 3,700 You need to do same for the other adjustments. You can follow the textbook pp 106-117. 2. Post the adjusting entries to the ledger 3. Prepare an adjusted trial balance Page 2 of 3 4. Prepare the worksheet 5. Prepare financial statements: income statement, retained earnings statement and statement of financial position (classified) 6- Joumalize and post the dosing entries 7. Prepare a post-closing trial balance