The first six months of the year have concluded for Sanchez Computer Center, and Tony wants to make the necessary adjustments to his accounts to prepare accurate financial statements.

Assignment

To prepare these adjustments, use the trial balance in Figure and the following inventory that Tony took at the end of March:

Supplies
10 dozen 1/4" screws at a cost of $10 a dozen
5 dozen 1/2" screws at a cost of $7 a dozen
2 feet of coaxial cable at a cost of $5 per foot
Merchandise Inventory
A physical inventory taken on March 31 indicated that merchandise inventory was valued at $300.
Depreciation of Computer Equipment
Computer depreciates at $33 a month; purchased July 5.
Computer workstations depreciate at $20 per month; purchased September 17.
Shop benches depreciate at $25 per month; purchased November 5.
Depreciation of Office Equipment
Office equipment depreciates at $10 per month; purchased July 17.
Fax machine depreciates at $10 per month; purchased November 20.
Expiration of Prepaid Rent
Six months’ worth of rent at a rental rate of $400 per month has expired. The following accounts have been added to the chart of accounts: Merchandise Inventory #1050, and Income Summary #3020.
Remember: If any long-term asset is purchased in the first 15 days of the month, Tony will charge depreciation for the full month. If an asset is purchased later than the 15th, he will not charge depreciation in the month it was purchased.
Complete the 10-column worksheet for the six months ended March 31,201X.

Transcribed Image Text:

Sanchez Computer Trial Balance March 31, 201X Trial Balance Account Titles Dr. 13,416.64 100.00 10,900.00 2,800.00 390.00 3,800.00 Cr. Cash Petty Cash Accounts Receivable Prepaid Rent Supplies Computer Shop Equipment Accum. Dep, С.S. Equip Office Equipment Accum. Dep., Office Equip Accounts Payable T. Freedman, Capital T. Freedman, Withdrawals Income Summary Service Revenue Sales Sales Returns and Allowances Sales Discounts 99.00 1,050.00 20.00 2,700.00 7,406.00 2,015.00 18,500.00 9,700.00 400.00 220.00 Advertising Expense Rent Expense Utilities Expense Phone Expense Supplies Expense Insurance Expense Postage Expense Miscellaneous Expense Wages Expense Payroll Tax Expense Purchases Purchase Returns 150.00 42.00 25.00 10.00 2,030.00 226.36 950.00 100.00 Total 38,525.00 38,525.00