ARQUEZ EQUIPMENT RENTAL

TRIAL BALANCE
DECEMBER 31, 2020

Particulars DEBIT CREDIT

Cash 55,600 —

Accounts Receivable 32,500 —

Office Supplies 8,000 —

Prepaid Rent 58,500 —

Prepaid Insurance 11,760 —

Equipment 192,000 —

Accumulated Depreciation - Equipment — 4,000

Accounts Payable — 31,150

E. Marquez, Capital — 262,030

E. Marquez, Drawing 22,600 —

Rental Service Revenue — 627,100

Salaries Expense 390,000 —

Utilities Expense 74,800 —

Travel Expense 58,720 —

Miscellaneous Expense 19,800 —

TOTAL 924,280 924,280

Adjustment data at December 31 are as follows:

(a) Rent expense for the year amounts to TK 4,875.
(b) Unexpired insurance at December 31, amounts TK 10,780.
(c) The equipment acquired on Sept. 1, is to be depreciated at TK 38,400 per year.
(d) Salaries incurred but unpaid at December 31, amounts to TK 7,500.
(e) Unused office supplies at December 31, TK 3200.
(f) Accrued Rental Service at December 31, TK 5,800.
Your are required to do:

1) 10 column worksheets
2) Adjusting journal
3) Income Statements
4) Balance Sheet
5) Closing entries

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 Adjusted Adjusted
Trial Trial Income Income Balance Balance
Trial Trial
Balance Balance Adjustments Adjustments Statement Statement Sheet Sheet
Account Titles Balance Balance
Debit Credit Debit (TK) Credit (TK) Debit Credit Debit Credit
Debit Credit
(TK) (TK) (TK) (TK) (TK) (TK)
(TK) (TK)
Cash 55,600 55,600 55,600
Accounts Receivable 32,500 5,800 38,300 38,300
Office Supplies 8,000 4,800 3,200 3,200
Prepaid Rent 58,500 4,875 53,625 53,625
Prepaid Insurance 11,760 980 10,780 10,780
Equipment 192,000 192,000 192,000
Acc. Depr. -
4,000 12,800 16,800 16,800
Equipment
Accounts Payable 31,150 31,150 31,150
E. Marquez, Capital 262,030 262,030 262,030
E. Marquez, Drawing 22,600 22,600 22,600
Rental Service
627,100 5,800 632,900 632,900
Revenue
Salaries Expense 390,000 7,500 397,500 397,500
Utilities Expense 74,800 74,800 74,800
Travel Expense 58,720 58,720 58,720
Miscellaneous
19,800 19,800 19,800
Expense
Rent Expense 4,875 4,875 4,875
Insurance Expense 980 980 980
Depreciation
12,800 12,800 12,800
Expense
Salaries Payable 7,500 7,500 7,500
Office Supplies
4,800 4,800 4,800
Expense
Net Income 58,625 58,625
TOTALS 924,280 924,280 36,755 36,755 950,380 950,380 632,900 632,900 376,105 376,105

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Adjusting Journal Entries

Marquez Equipment Rental

December 31, 2020

Date Account Titles & Explanation Ref. Debit (Tk.) Credit (Tk.)

Dec 31 Rent Expense 4,875 4,875

To Prepaid Rent
(Being rent expense for the year adjusted)

Dec 31 Insurance Expense 980 980

To Prepaid Insurance
(Being expired insurance recorded)

Dec 31 Depreciation Expense 12,800 12,800

To Accumulated Depreciation – Equipment
(Being depreciation charged for the year considered 4
months)

Dec 31 Salaries Expense 7,500 7,500

To Salaries Payable
(Being salaries accrued but unpaid)

Dec 31 Supplies Expense 4,800 4,800

To Office Supplies
(Being supplies used during the year)

Dec 31 Accounts Receivable 5,800 5,800

To Rental Service Revenue
(Being rental service accrued at year end)

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