Question
The unadjusted trial balance of Ahmad Enterprise is given in the following table. The business records annual adjustments on December 31, the end of its
The unadjusted trial balance of Ahmad Enterprise is given in the following table. The business records annual adjustments on December 31, the end of its fiscal year.
Ahmad Enterprise
Trial Balance
December 31, 2022
Account Titles Debit Credit
Accounts payable $40,000
Accounts receivable $52,000
Advertising expense 7,100
Bank Loan for 10 years 57,000
Building 115,000
Capital 206,000
Cash 35,000
Commission expense 9,200
Delivery van 25,000
Interest expense 3,200
Office equipment 84,000
Prepaid rent 18,000
Repair expense 1,500
Salaries expense 25,000
Service revenue 72,000
Total 375,000 375,000
Additional Information:
The business made an advance payment of rent for 12 months on August 1, 2022.
Interest on Bank Loan is yet to be recorded for 2022. This loan was taken by the business on January 1, 2022 with an annual interest rate of 5%.
Salaries unpaid at the end of the year amounted to $850.
During the last week of December 2022, services of $1225 were provided on account. However, those customers were not billed yet.
Useful life of Office Equipment is 15 years; Building is expected to be useful for 30 years, and remaining useful life of Delivery Van is 10 years. There will be no scrap value at the end of these assets' useful life. Annual depreciation for all of these fixed assets needs to be recorded on December 31, 2022.
Required:
Prepare a ten-column worksheet for the year ended 31st December 2022.
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