INSTRUCTIONS:

Download and save the Excel file nd then use the Excel file to:

Prepare Adjusting Journal Entries on the Expanded TB Worksheet tab

Prepare Closing Journal Entries on the Expanded TB Worksheet tab

Prepare a Classified Balance Sheet (using formulas to link accounts from the Working Trial Balance)

Prepare a Multistep Income Statement (using formulas to link accounts from the Working Trial Balance)

A FEW ITEMS TO NOTE:

On the Expanded TB Worksheet tab, if there are no debits or credits for any particular account in the Adjustments or Closing Entries columns, the cell should be blank. No cell in these columns should have a value of "0.

Under the Adjusted T/B and Post Closing T/B columns, each account should have just one entry. For example, under Adjusted T/B, Accounts Payable should have a blank Debit column and some amount in the Credit column. Under Post Closing T/B, Accounts Payable should have a blank Debit column and some amount in the Credit column. If an account has no balance in either the Debit or Credit column, indicate no balance by formatting the cell to show $0 as a dash in the cell of that accounts normal balance. For example, if Accounts Payable has a balance of $0, the normal balance for A/P is a credit balance, so the Credit column should show a dash.

The cell values for the Adjusted T/B, Closing Entries, and Post Closing T/B debit and credit columns should be made with formulas. Do not type the values into these cells.

You SHOULD type the values into the Adjustments debit and credit columns.

ADJUSTING ENTRIES:

1.The accountant posted a credit to A/C 150 in error; it belonged in A/C 145.

2.A physical count of inventory on hand at period end amounted to $25,000.

3.The accountant forgot to bill a customer for services the company provided in the amount of $600,000.

4.There was no Prepaid Insurance at the end of the period.

5.The total of all unpaid payroll at period end amounted to $145,000.

6.The accountant received the utility bill for the current month in the amount of $1,000 but forgot to enter it as an unpaid bill.

7.The proper balance of Accrued Expenses is $5,000. The entire previous accrual of $55,000 was for Professional Fees Expense.

8.The proper balance of Deferred Revenue at period end is $50,000. A customer had prepaid $150,000 in the prior period for Sales of Merchandise of which $100,000 was earned this period.

9.The tax department computed the total income tax liability at period end to be $200,000 and sent that information to the accountant.

10.The company paid cash dividends on the common and preferred stock in the amounts of $10,000 and $100,000, respectively but the accountant never recorded the journal entry.