Question

In: Accounting

It is now 30 June and our business is preparing adjustments via a worksheet. Complete the...

It is now 30 June and our business is preparing adjustments via a worksheet.

Complete the following adjustments in the worksheet (if no adjustment is necessary enter "0" in the relevant box). The ref is the number of the adjustment

Then answer the 3 questions at the bottom of the table.

1 Prepaid 12000 rent on 1 April for three months. Adjustments have been done for April and May.

2 30 June is a Sunday. Wages are paid fortnightly (8000) with the last payment made on Friday 21 June. As the busienss operates from Monday to Firday we need to accrue one week.

3 Earned 2500 of Subscriptions Revenue which had already being paid for by the client.

4 Work in Progress (for Services) is calculated to be 3000. (Use accrued revenue).

5 Office Supplies were counted on 30 June. They totalled 4000.

6 Depreciation for June is 2000.

7 Interest on Note Payable is 1000. This is payable in July.

Worksheet for the month ended 30 June
Unadjusted TB Adjustments Adjusted TB
Account Dr Cr Ref Dr Cr Dr Cr
Cash At Bank

30000

Answer
Accounts Receivable 40000 Answer
Inventory 20000 Answer
Office Supplies 5000 Answer Answer Answer Answer
Prepaid Rent 4000 Answer Answer Answer Answer
Accrued Revenue 0 Answer Answer Answer Answer
Equipment 70000 Answer
Accum Depreciation 35000 Answer Answer Answer Answer
Accounts Payable 30000 Answer

Interest Payable

0 Answer Answer Answer Answer

Salaries Payable

0 Answer Answer Answer Answer

Unearned Revenue

3000 Answer Answer Answer Answer
Notes Payable 75000 Answer
Owners Capital 31500 Answer
Income Summary
Service Revenue 150000 Answer Answer Answer Answer
Subscriptions Revenue 100000 Answer Answer Answer Answer
COGS 60000 Answer
Bank Fees 500 Answer

Depreication Expense

15000 Answer Answer Answer Answer

Interest Expense

6000 Answer Answer Answer Answer
Rent Expense 26000 Answer Answer Answer Answer
Salaries Expense 141000 Answer Answer Answer Answer
Supplies Expense 7000 Answer Answer Answer Answer
Total 424500 424500 Answer Answer
Has this business made a profit or loss? Answer Loss     OR Profit
What are total assets Answer 130000 OR 167000
Will owners equity increase or decrease? Answer Decrease    OR Increase     OR  Cannot say

Please answer all parts of the question.

Solutions

Expert Solution

Worksheet for the month ended 30 June
Account Unadjusted TB Ref. Adjustments Adjusted TB
Debit Credit Debit Credit Debit Credit
Cash at bank 30000 30000
Accounts receivable 40000 40000
Inventory 20000 20000
Office supplies 5000 5 0 1000 4000
Prepaid rent 4000 1 0 4000 0
Accrued revenue 0 4 3000 0 3000
Equipment 70000 70000
Accum depreciation 35000 6 0 2000 37000
Accounts payable 30000 30000
Interest payable 0 7 0 1000 1000
Salaries payable 0 2 0 4000 4000
Unearned revenue 3000 3 2500 0 500
Notes payable 75000 75000
Owners capital 31500 31500
Income summary
Service revenue 150000 4 0 3000 153000
Subscriptions revenue 100000 3 0 2500 102500
COGS 60000 60000
Bank fees 500 500
Depreciation expense 15000 6 2000 0 17000
Interest expense 6000 7 1000 0 7000
Rent expense 26000 1 4000 0 30000
Salaries expense 141000 2 4000 0 145000
Supplies expense 7000 5 1000 0 8000
Totals 424500 424500 434500 434500
Has this business made a profit or loss? Loss
What are total assets? $130,000
Will owners equity increase or decrease? Decrease

Related Solutions

It is now 30 June and our business is preparing adjustments via a worksheet. Complete the...
It is now 30 June and our business is preparing adjustments via a worksheet. Complete the following adjustments in the worksheet using the number next to each adjustment as the ref (if no adjustment is necessary enter "0" in the relevant box). All answers are numbers which consist only of the digits 0 to 9. Symbols or punctuation marks should NOT be incorporated in answers. Then determine whether owners equity will increase or decrease. 1 Prepaid 12,000 for annual insurance...
Complete a worksheet from a trial balance and adjustment data. Enter the adjustments in the adjustments...
Complete a worksheet from a trial balance and adjustment data. Enter the adjustments in the adjustments columns of the worksheet. Key adjusting entries by letter. Total the debit and credit columns. Then calculate the adjusted​balances, enter them in the adjusted trial balance columns on the​ worksheet, and​ again, total the debit and credit columns. J. Trent Worksheet Month Ended July 31, 201X Trial Balance Adjustments Account Titles Debit Credit Debit Credit Cash 32 Accounts Receivable 7 Prepaid Insurance 4 Store...
Required: Complete the following worksheet for Appliance Repair for the year ended 30 June 2020. (15...
Required: Complete the following worksheet for Appliance Repair for the year ended 30 June 2020. Additional information to complete the worksheet: The equipment of $67,500 was purchased on 1 March 2020. The straight-line depreciation method is used with a useful life of 3 years and a scrap value of $2,700. No depreciation is ever recorded. The $75,000 bank loan was borrowed on 1 May 2020. It is an interest only loan. The interest rate is 0.8% per month. No interest...
Complete the following worksheet for Appliance Repair for the year ended 30 June 2020. (15 marks)...
Complete the following worksheet for Appliance Repair for the year ended 30 June 2020. Additional information to complete the worksheet: The equipment of $67,500 was purchased on 1 March 2020. The straight-line depreciation method is used with a useful life of 3 years and a scrap value of $2,700. No depreciation is ever recorded. The $75,000 bank loan was borrowed on 1 May 2020. It is an interest only loan. The interest rate is 0.8% per month. No interest is...
The trial balance columns of the worksheet for Crane Company at June 30, 2020, are as...
The trial balance columns of the worksheet for Crane Company at June 30, 2020, are as follows Crane Company Worksheet For the Month Ended June 30, 2020 Trial Balance Account Titles Dr. Cr. Cash 2,500 Accounts Receivable 2,200 Supplies 1,900 Accounts Payable 1,000 Unearned Service Revenue 380 Owner’s Capital 2,710 Service Revenue 3,100 Salaries and Wages Expense 490 Miscellaneous Expense 100        Total 7,190 7,190 Other data: 1. A physical count reveals $600 of supplies on hand. 2. $170 of...
The trial balance columns of the worksheet for Cullumber Company at June 30, 2020, are as...
The trial balance columns of the worksheet for Cullumber Company at June 30, 2020, are as follows. Cullumber Company Worksheet For the Month Ended June 30, 2020 Trial Balance Account Titles Dr. Cr. Cash 2,200 Accounts Receivable 2,400 Supplies 1,900 Accounts Payable 1,100 Unearned Service Revenue 370 Owner’s Capital 2,170 Service Revenue 3,700 Salaries and Wages Expense 640 Miscellaneous Expense 200        Total 7,340 7,340 Other data: 1. A physical count reveals $300 of supplies on hand. 2. $200 of...
The trial balance columns of the worksheet for Novak Company at June 30, 2022, are as...
The trial balance columns of the worksheet for Novak Company at June 30, 2022, are as follows. Novak Company Worksheet For the Month Ended June 30, 2022 Trial Balance Account Titles Dr. Cr. Cash 2,400 Accounts Receivable 2,640 Supplies 1,860 Accounts Payable 1,040 Unearned Service Revenue 420 Common Stock 3,100 Service Revenue 3,100 Salaries and Wages Expense 660 Miscellaneous Expense 100 7,660 7,660 Other data: 1. A physical count reveals $500 of supplies on hand. 2. $200 of the unearned...
The trial balance columns of the worksheet for Swifty Company at June 30, 2022, are as...
The trial balance columns of the worksheet for Swifty Company at June 30, 2022, are as follows. Swifty Company Worksheet For the Month Ended June 30, 2022 Trial Balance Account Titles Dr. Cr. Cash 2,000 Accounts Receivable 2,780 Supplies 1,980 Accounts Payable 1,040 Unearned Service Revenue 440 Common Stock 2,560 Service Revenue 3,400 Salaries and Wages Expense 560 Miscellaneous Expense 120 7,440 7,440 Other data: 1. A physical count reveals $350 of supplies on hand. 2. $150 of the unearned...
Complete the following questions by preparing worksheet and journal entries given below. The partnership of Butler,...
Complete the following questions by preparing worksheet and journal entries given below. The partnership of Butler, Osman, and Ward was formed several years as a local tax preparation firm. Two partners have reached retirement age and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $53,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash $ 49,000 Liabilities $ 189,000 Accounts receivable 79,000 Butler, loan 49,000 Office equipment (net)...
1. Complete the Adjustments section of the work sheet using the following information: On October 30,...
1. Complete the Adjustments section of the work sheet using the following information: On October 30, an inventory of the supplies showed that items costing $1,730 were used this month. Record an adjustment for the supplies used in October. On October 1, 20xx the company purchased a twelve-month insurance policy for $8,400. Record an adjustment for the expired insurance during the month of October. On October 3, the company purchased a six-month advertising contract for $4,800. Record an adjustment for...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT