Adjusted Trial Balance Preparation Guide
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ScribdTranslationsAdjusted Trial Balance Preparation Guide
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ScribdTranslationsE3-19
Preparation of adjustment entries and preparation of an adjusted trial balance
Shining Image Company, a cleaning service company, began the preparation of
adjusted verification as follows:
SHINING IMAGE COMPANY
Preparation of the adjusted trial balance
December 31, 2010
Trial balance Ajus
Account There must be Must
Cash 1,100
Supplies 2,000
Prepaid insurance 600
Team 30,000
Accumulated depreciation 2,000
Accounts payable 1,700
Salaries payable
Income from unearned services 400 e) 370
Roberta Defuniak, Capital 15,600
Roberta Defuniak, Retreats 1,000
Revenue from services 22,000
Expenses for salaries 7,000 d) 270
Expenses for supplies a) 1,100
Depreciation expense c) 510
Insurance expense b) 590
Total 41,700 41,700 2,840
During the 12 months that ended on December 31, 2010, Shining Image did what
He/She used supplies worth $1,100
b) Prepaid insurance expenses accrued for $590
c) Consumed $510 from the equipment through depreciation
d) Accumulated expenses for salaries of $270 that Shining Image has not yet paid.
It accrued $370 from unearned service revenues.
It is required
1. Complete the adjusted trial balance. Identify each adjustment with a
lyrics.
there is
of your balance of
yes
Trial balance
stes Adjusted
News Must News
1,100
a) 1,100 900
b) 590 10
30000
c) 510 2510
1700
d) 270 270
30
15600
1000
e) 370 22370
7270
1100
510
590
2,840 42,480 42,480
the following:
E3-21
Use of the adjusted trial balance to determine the adjustment entries of d
The adjusted trial balance of Best Jobs Employment Service is presented to co
incomplete.
BEST JOBS EMPLOYMENT SERVICE
Adjusted trial balance
30 de abril de 2008
Trial balance Adjust
Account There must be Must
Cash 600
Accounts receivable 4,600 b) 1,200
Supplies 1,000
Team 32,000
Accumulated depreciation 14,200
Salaries payable
Landrum, Capital 24,500
Landrum, Retreats 5,200
Income from services 9,200
Salary expenses 3,200 d) 1,000
Expense for rent 1,300
Depreciation expense c) 1,400
Expenses for supplies a) 100
Total 47,900 47,900 3,700
Required:
1. Calculate and record the amounts of the adjustments directly in the columns of
Missing adjustments.
2. Prepare each adjusting journal entry calculated in requirement 1. Date the entries.
and include explanations.
a) Used supplies worth $100
b) Revenue from credit services amounted to $1200
c) Consumed $1400 from the equipment through depreciation
d) Expenses were incurred for wages of $1000
Match # 1
Supplies expenses 100
Supplies 100
Use of supplies
Match # 2
Accounts receivable 1,200
Income from services 1,200
Revenue from credit services amounted to $1200
Match # 3
Depreciation expenses 1,400
Accumulated depreciation 1,400
Consumed $1400 from the equipment through depreciation.
Match # 4
Expenses for Salaries 1,000
Salaries payable 1,000
Expenses of $1000 were generated for salaries
diary
continuation, although it is
Trial balance
studies Adjusted
News Must News
600
5,800
a) 100 900
32,000
c) 1,400 15,600
d) 1,000 1,000
24,500
5,200
b) 1,200 10,400
4,200
1,300
1,400
100
3,700 51,500 51,500
or
E3-28A
Comparison of accrual accounting and cash basis accounting
from the adjustment seats and preparation of income statements
Fischer's Golf School made the following transactions during July 2012
Jul-01 Paid in advance insurance from July to September, $1,200
Provided services (gave golf lessons) on credit, $2,300
Bought equipment on credit, $1,400
Paid the property tax expense, $300
11Purchased office equipment in cash, $1,700
19 Provided services and received cash, $800
24Collected $500 on account
He paid the bill due on July 5th.
Paid expenses for salaries, $1,000
31 Recorded an adjusting entry for July's insurance expenses (see July 1
31 Charged to unearned income and credited to income in an adjusting entry, $
Required:
1. Prepare journal entries for each transaction.
2. Filling in the following table and using the journal entries as a guide, mo
it would be treated as income or as an expense, using accrual basis
Amount of income (expenses) for July
Cash: Base amount of the De
Date Income (expenses)
July 1
3. After completing the table, calculate the amount of net profit or of
company with the accrual base and the cash basis for July.
4. Considering their results in requirement 3, what method offers the best
true gains of Fischer's Golf School? Why?
Development
1) Match # 1 Jul/1
Prepaid insurance 1,200
Cash 1,200
Payment of 3 months of insurance in advance
Match # 2 Jul/4
Accounts receivable 2,300
Income from services 2,300
Provided services (gave golf lessons) on credit, $2,300
Game # 3 Jul/5
Team 1,400
Accounts Payable 1,400
Bought equipment on credit, $1,400
Match # 4 Jul/8
Tax expense 300
Cash 300
Paid the property tax, $300
Game # 5 Jul/11
Office equipment 1,700
Cash 1,700
Purchased office equipment in cash, $1,700
Match # 6 Jul/19
Cash 800
Revenue from services 800
Provided services and received cash, $800
Match # 7 Jul/24
Cash 500
Accounts receivable 500
He charged $500 on account
Match # 8 Jul/26
Accounts payable 1,400
Cash 1,400
He paid the bill due on July 5th.
Match # 9 Jul/29
Salary expenses 1,000
Cash 1,000
Paid expenses for salaries, $1,000
Match # 10 Jul/31
Insurance expenses 400
Prepaid insurance 400
He made an adjusting entry for July's insurance expenses (see July 1
Game # 11 Jul/31
Income from unearned services 800
Income from services 800
Charged to unearned revenue and credited to revenue in an adjustment entry, $
2) Amount of income (expenses) for July
Cash: Base amount of the De
Date Income (expenses)
July 1 -1,200
July 4
July 5
July 8 -300
July 11 -1,700
July 19 800
July 24 500
Julio 26 -1,400
July 29 -1,000
July 31
July 31
Net Income -4,300
Cash: Base amount of the De
3) Income (expenses)
Net Income -4,300
Considering their results in requirement 3, what method offers the best performance?
4) profits of Fischer's Golf School? Why?
R=/ The effective base because it involves us more with the amount of money
accounts and keeps us alert with the flow of the business.
cash supply, preparation
2:
1)
$800
show if each transaction
cash bases and envelopes.
evenged: base amount of
revenues (expenses)
the net loss, for the
the panorama of the
1)
$800
evengado: base amount of
Income (expenses)
2,300
1,400
-300
-400
-800
2,200
evengado: base amount of
Income (expenses)
2,200