Now that you have completed the June bank reconciliation process, you are asked to complete the worksheet for Outsport.

The worksheet is an internal document that exists outside the journals and ledgers. It is often used in the manual accounting system to help record adjusting entries and prepare financial statements. After you have prepared the worksheet, in the next section of the practice set you will be asked to use the completed worksheet to help journalize and post adjusting entries to general ledger. You will also use this worksheet to assist you in preparing the financial statements for Outsport in a later section of this practice set.

The details of the end of month adjustments for June are as follows:

• Office Furniture owned by the business: original purchase price was $9,000, estimated useful life was 6 years, and estimated residual value was $2,000 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year.
• Office Equipment owned by the business: original purchase price was $51,000, estimated useful life was 11 years, and estimated residual value was $5,500 at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year.
• The water usage for the month of June is estimated to be $116.
• The estimated electricity payable as at the end of the month is $486.
• Sales staff work every single day during the week including weekends and are paid on a weekly basis. Wages were last paid up to and including 24 June. Wages incurred after that day (from June 25 to June 30 inclusive) are estimated to have been $300 per day.
• Interest expense incurred during the month of June but not yet paid to BitiBank for the bank loan is $270.
• Interest earned from short-term investments in MRMC Bank for the month of June is $110.
• Office supplies totaling $2,545 are still on hand at June 30.
• 15 days of rent remained pre-paid at the start of June.
• 3 months of advertising remained pre-paid at the start of June.
• 5 months of insurance remained pre-paid at the start of June.

When calculating the portion of prepayments that expire during the month of June, you are asked to assume that an equal amount of expense is incurred per month.

After taking a physical count of inventory at the end of the month, the balance of inventory on hand as at June 30 is found to be equal to the closing balance of the Merchandise Inventory account. This means there is no adjusting entry required for inventory shrinkage.

Instructions for worksheet

Complete all columns in the worksheet. To do this, you need to use the account balances provided in the general ledger to fill out the Unadjusted Trial Balance columns. You are also required to calculate the end of month adjustments for June and enter them into the worksheet before completing the remaining columns. Note that not all boxes in each column of the worksheet will need to be filled.

Remember to enter all answers to the nearest whole dollar.

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Please note that any answers from previous pages carried through onto this page (either on the page or in a popup information page) have been reset, if necessary, to the correct answers. Your particular answers from previous pages are no longer shown.

If you want to print this page, please read and follow the special printing information to ensure you can print the worksheet in full.

Information from previous pages

• General instructions
• Policies and procedures
• All transactions
• Adjusting entries information
• Trial balance - May
• Schedules of accounts - May
• Inventory cards - May
• Bank reconciliation - May

• Bank statement - June
• Journals and ledgers instructions
• Inventory cards instructions
• Inventory cards - June
• Special printing information
• Cash journals
• General ledger pre adjusting
• Subsidiary ledgers pre adjusting

(Q=832.worksheetQuestion)

Outsport

Worksheet

For the month ended June 30, 2021

Acct. No.	Account Name	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance		Income Statement		Balance Sheet
		Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
100	Cash
102	Short-term Investments
112	Interest Receivable
110	ARC - Accounts Receivable Control
120	Merchandise Inventory
130	Office Supplies
140	Prepaid Rent
141	Prepaid Advertising
142	Prepaid Insurance
150	Office Furniture
151	Accum Depn: Office Furniture
160	Office Equipment
161	Accum Depn: Office Equipment
210	APC - Accounts Payable Control
220	Wages Payable
221	Electricity Payable
222	Water Payable
225	Interest Payable
240	Sales Tax Payable
250	Bank Loan Payable
300	Common Stock
301	Retained Earnings
400	Sales Revenue
403	Interest Revenue
500	Cost of Goods Sold
511	Advertising Expense
516	Wages Expense
540	Rent Expense
541	Electricity Expense
542	Water Expense
543	Insurance Expense
544	Office Supplies Expense
545	Salary Expense
560	Depn Expense: Office Furniture
561	Depn Expense: Office Equipment
571	Interest Expense
572	Admin. Expense - Bank Charges
	Totals
	Net income or loss
	Totals