Question

How do I adjust my unadjusted Trial Balance?

Date	Acct	Dr	Cr
1/2/2016	Cash	175,000
	Owners Equity		175,000
1/2/2016	Cash	100,000
	Common Stock		100,000
1/2/2016	Cash	60,000
	Unearned rent revnue		60,000
	Utilities	30,000
	Cash		30,000
1/15/2016	Equipment	50,000
	Cash		50,000
	Depreciation exp	5000
	Accumulated Dep		5,000
1/15/2016	Rent Expense	39,600
	Cash		39,600
1/16/2016	Office Supplies	86000
	Accounts Payable		86000
	Supplies Expense	6700
	Supplies		6700
1/2/2016	Wage Expenses	180000
12/31/2016	Federal Taxes Withheld		48000
	State Taxes Withheld		14400
	FICA		13770
	FUTA		1440
	SUTA		6750
	Salaries Payable		95640
12/31/2016	Dividends	50000
	Cash		50000
	A/R	800000
	sales		800000
	COGS	280000
	Inventory		280000
		1,862,300	1862300

Answer 1

Preparation of Trial Balance from given data

TRIAL BALANCE

AS ON GIVEN DATE

Description	Debit	Credit
Owner Equity		175000
Common Stock		100000
Dividend	50000
Sales		800000
COGS	280000
Utility	30000
Wages	180000
Depreciation	5000
Rent Expenses	39600
Office Supplies	86000
Supplies Expenses	6700
Cash	165400
Equipment	50000
Account Receivable	800000
Accumulated Depreciation		5000
Account Payables		86000
Salary Payable		95600
Federal Tax Withheld		48000
State Tax Withheld		14400
FICA		13770
FUTA		1440
SUTA		6750
Unearned Rent Revenue (Advance rent received)		60000
Provision for supplies consumed		6700
Provision for inventry sold off (W/o)		280000
Total	1692700	1692700

So above is a matched trial balance from given data

Workings:-

Calculation of ending cash balance = Total of Dr of cash - Total of credits of cash

= (175000 + 100000 + 60000 ) - (30000 + 50000 + 39600 + 50000)

= $165400

Supply consumed and inventory sold off are displayed in trial balance as a provision of supply consumed and provision for inventory sold because we have not provided with opening basis of supply and inventory so we cannot calculate net balance of supply and inventory at the trial balance date so we have made a provision for them in trial balance to adjust the trial balance by following journal entries.

For Supplies

Supplies 6700

Provision for supply consumed 6700

(Provision Made)

For inventory sold off

Inventory 280000

provision for inventory sold off 280000

(Provision made)

So above is the solution to problem

All figures stated above is USD ($)