Unit 4 Complete a Work Sheet and Post the Adjusting Entries 2 3 4 5 6 Directions: On October 31 of the current year, Pool Repair Co. has the following general ledger accounts and balances. The business uses a monthly fiscal period. A work sheet is given in tab 2. 1) Prepare the trial balance on the work sheet. Then, total and rule the trial balance columns. 2) Analyze the adjustment information given below. Then, record the adjustments on the work sheet. Total and rule the adjustments columns. 3) Extend the up-to-date balances to the income statement or balance sheet columns. 4) Calculate net income or net loss. 5). Extend the net income or net loss to the appropriate income statement and balance sheet columns. 6) Prove and rule the income statement and balance sheet columns. 7) Journalize and post the adjusting entries. Abbreviate the month of October, using the first three characters and a period (Oct.). 7 8 9 10 11 12 13 14 Account Balances Debit Credit $8,630.00 300.00 4,022.00 2,200.00 3,100.00 $2,000.00 12,408.00 800.00 15 16 17 18 19 Account Titles Cash Petty Cash Accounts Receivable-Michael Pelts Supplies Prepaid Insurance Accounts Payable-Olympian Pool Suppliers Betty Fastly, Capital Betty Fastly, Drawing Income Summary Sales Advertising Expense Cash Short and Over Insurance Expense Miscellaneous Expense Rent Expense Supplies Expense Utilities Expense 20 21 8,980.00 22 23 1,000.00 6.00 24 25 26 27 480.00 850.00 2,000.00 28 29 30 31 32 Adjustment Information, October 31: (a) Supplies Inventory, $540.00 (b) Value of Prepaid Insurance, $2,800.00 -Ending Supplies Inventory Balance, October 31 -Ending Value of Prepaid Insurance, October 31 33 34 35 36 37_ Tab 1 Information Tab 2 Work Sheet Tab 3 Journa Work Sheet 2 3 5 6 6 7 Pool Repair Co. Work Sheet For Month Ended October 31, 20XX 2 3 4 8 9 1 1 5 6 7 8 10 TRIAL BALANCE ADJUSTMENTS INCOME STATEMENT BALANCE SHEET 11 ACCOUNT TITLE DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT 12 1 Cash 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 2 Petty Cash 3 Accounts Receivable-Michael Pelts 4 Supplies 5 Prepaid Insurance 6 Accounts Payable-Olympian Pool Suppliers 7 Betty Fastly, Capital 8 Betty Fastly, Drawing 9 Income Summary 10 Sales 11 Advertising Expense 12 Cash Short and Over 13 Insurance Expense 14 Miscellaneous Expense 15 Rent Expense 16 Supplies Expense 17 Utilities Expense 18 19 Net Income 20 21 1 2 3 4 5 16 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 32 33 2 JOURNAL 1 3 Doc. No. Post. Ref. 1 2 General Debit Credit 3 Sales Credit 4 5 Cash Debit Credit Date 5 6 7 Account Title Adjusting Entries 8 9 10 11 12 General Ledger 13 14 ACCOUNT Supplies ACCOUNT NO. 150 15 16 POST REF 17 DATE ITEM DEBIT CREDIT BALANCE DEBIT CREDIT 2,200.00 18 Oct. 31 19 20 21 22 23 ACCOUNT Prepaid Insurance ACCOUNT NO. 160 24 25 POST REF ITEM DEBIT CREDIT DATE Oct. BALANCE DEBIT CREDIT 3,100.00 26 31 27 28 29 30 ACCOUNT Insurance Expense ACCOUNT NO. 550 31 32 POST REF. BALANCE DEBIT CREDIT DATE ITEM DEBIT CREDIT 33 34 35 36 37 38 ACCOUNT Supplies Expense ACCOUNT NO. 570 39 40 POST REF BALANCE DEBIT CREDIT 41 DATE ITEM DEBIT CREDIT 42 43 44