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Now that you have completed the June bank reconciliation process, you are asked to complete the worksheet for The Digital Village.

The worksheet is an internal document that exists outside the journals and ledgers. It is often used in the manual accounting system to help record adjusting entries and prepare financial statements. After you have prepared the worksheet, in the next section of the practice set you will be asked to use the completed worksheet to help journalize and post adjusting entries to general ledger. You will also use this worksheet to assist you in preparing the financial statements for The Digital Village in a later section of this practice set.

The details of the end of month adjustments for June are as follows:

Office Furniture owned by the business: original purchase price was $$8,000,$ estimated useful life was $6$ years, and estimated residual value was $$1,500$ at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year,

Office Equipment owned by the business: original purchase price was $$47,000,$ estimated useful life was $9$ years, and estimated residual value was $$5,500$ at the end of the useful life. Depreciation is calculated on a monthly basis using the straight line method. The monthly depreciation charge is calculated as the yearly depreciation expense divided by the number of months in a year.

The water usage for the month of June is estimated to be $$118.$

The estimated electricity payable as at the end of the month is $$409.$

Sales staff work every single day during the week including weekends and are paid on a weekly basis. Wages were last paid up to and including $25$ June. Wages incurred after that day $($from June $26$ to June $30$ inclusive$)$ are estimated to have been $$1,870$ per day.

Interest expense incurred during the month of June but not yet paid to BitiBank for the bank loan is $$275.$

Interest earned from short$-$term investments in MRMC Bank for the month of June is $$105.$

Office supplies totaling $$2,065$ are still on hand at June $30.$

$15$ days of rent remained pre$-$paid at the start of June.

$3$ months of advertising remained pre$-$paid at the start of June.

$5$ months of insurance remained pre$-$paid at the start of June.

When calculating the portion of prepayments that expire during the month of June, you are asked to assume that an equal amount of expense is incurred per month.

After taking a physical count of inventory at the end of the month, the balance of inventory on hand as at June $30$ is found to be equal to the closing balance of the Merchandise Inventory account. This means there is no adjusting entry required for inventory shrinkage.

Instructions for worksheet

Complete all columns in the worksheet, To do this, you need to use the account balances provided in the general ledgers to fill out the Unadjusted Trial Balance columns. You are also required to calculate the end of month adjustments for June and enter them into the worksheet before completing the remaining columns. Note that not all boxes in each column of the worksheet will need to be filled.

Remember to enter all answers to the nearest whole dollar.

Back$-$On$-$Track functionality

Please note that any answers from previous pages carried through onto this page $($either on the page or in a popup information page$)$ have been reset, if necessary, to the correct answers. Your particular answers from previous pages are no longer shown.

If you want to print this page, please read and follow the special printing information to ensure you can print the worksheet in full.

The Digital Village

Worksheet

For the month ended June $30,2024$

$\backslash$table$[[$Acct$.$ No$.,$Account Name,Unadjusted Trial Balance,Adjustments,Adjusted Trial Balance,Income Statement,Balance Sheet$],[$Debit$,$Credit,Debit,Credit,Debit,Credit,Debit,Credit,Debit,Credit$],[100,$Cash,,,,,,,,,,$],[102,$Short$-$term Investments,,,,,,,,,,$],[112,$Interest Receivable,,,,,,,,,,$],[110,$ARC $-$ Accounts Receivable Control,,,,,,,,,,$],[120,$Merchandise Inventory,,,,,,,,,,$],[130,$Office Supplies,,,,,,,,$3,,],[140,$Prepaid Rent,,,,,,,,,,$],[141,$Prepaid Advertising,,,,,,,,,Prepaid Insurance,,,,,,,,,,$],[150,$Office Furniture,,,,,,,,,,$],[151,$Accum Depn: Office Furniture,,,,,,,,,,$],[160,$Office Equipment,,,,,,,,,,$],[161,$Accum Depn: Office Equipment,,,,,,,,,,$],[210,$APC $-$ Accounts Payable Control,,,,,,,,,,$],[220,$Wages Payable,,,,,,,,,,$],[221,$Electricity Payable,,,,,,,,,,$],[222,$Water Payable,,,,,,,,,,$],[225,$Interest Payable,,,,,,,,,,$],[240,$Sales Tax Payable,,,,,,,,,,$],[250,$Bank Loan Payable,,,,,,,,,,$],[300,$Common Stock,,,,,,,,,,$],[301,$Retained Earnings,,,,,,,,,,$]]$

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