In: Accounting
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.
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 |