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Below is an incomplete year-end worksheet which you will have to complete

1

Make the necessary adjustments, given the information items a through g.

2

Once the worksheet is completed make the gen. journal closing entries.

Trial Balance

----Adjustments----

Adjusted Trial Balance

Inc. Statement

Balance Sheet

Debit

Credit

adj. ref.

Debit

Credit

Debit

Credit

Debit

Credit

Debit

Credit

Cash

20000

Accounts receivable

24000

Supplies

800

Prepaid Insurance

2960

Prepaid Rent

9000

Equipment

42000

Accum. Depreciation, Equip.

18500

Accounts Payable

14600

Salary Payable

Unearned Service revenue

750

Betty, Jones, Capital

105000

Betty, Jones, Withdrawals

41000

Service Revenue

141710

a and b

Depreciation Expense

Supplies Exp.

Salary Expense

136000

Utilities Exp.

4800

Insurance Exp.

Rent Exp.

Totals

280560

280560

0

0

0

0

0

0

0

0

Profit/Loss

Totals

0

0

0

0

a.

$620 of revenue has been earned but not yet recorded nor collected.

b.

$175 of the Unearned serv. Rev. account balance has now been earned

c.

The office we rent has been in use all 12 months this past year and the monthly rental rate has been 600 per month for many years.

d.

A year-end inventory reveals there is now 275 supplies on hand

e.

The equipment is estimated to last 8 years. All the equipment was bought a few years ago.

f.

At year end we owe our employees $900 in accrued compensation.

g.

Our current insurance policy will expire after 2 months into next year. Insurance Costs us 370 per month.

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