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    DaWix's Avatar
    DaWix Posts: 1, Reputation: 1
    New Member

    Oct 5, 2009, 11:51 AM
    Trial Balance Worksheet, Adjustments & Adjusted Trial Balance
    I'm trying to do a Trial Balance worksheet and this is what I have to do, I believe these go in the adjustments section.

    a. Unexpired insurance balance at December 31, 2008: $2,500
    b. Supplies on hand at December 31, 2008: $500
    c. Depreciation on building for the year: $1,300
    d. Depreciation on equipment for the year: $4,500

    A. In my unadjusted trial balance I have
    Prepaid Insurance Debit:7,200

    Do I credit 2,500 in the adjustments Leaving Debit:4,700 in the adjusted trial balance?

    B. My supplies is
    Supplies Debit:1,980
    So I should Credit 500? Leaving Debit:1480 in adjusted?

    Am I on the right track?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member

    Oct 8, 2009, 01:00 PM
    ALL entries must have equal debits and credits. So there has to be another side of these entries. When assets are consumed, they turn into expenses.

    Also re-read what it is saying. Let's start with the supplies since it's easier. If you have $500 on hand, then how do you have 1480 left? You have $500 left. The amount you take out of the account is the amount that is gone. $500 isn't gone - it's left.

    The insurance is the same concept, except problems can never decide whether to give you the expired or the unexpired portion. Just keep in mind that the unexpired portion is the portion that is still prepaid. Prepaid insurance is something paid up front and you still have coverage coming. So "unexpired" is still coming to you, and still an asset. The expired portion is the part that is already consumed and must turn into an expense.
    StaceyShaw's Avatar
    StaceyShaw Posts: 2, Reputation: 1
    New Member

    Nov 28, 2010, 06:51 AM
    I have an unadjusted trial balance. All original entries involving cash have been made, but some entries were recorded incorrectly. I have to prepare in journal entry form all adjusting and correcting journal entries. This is one of my questions. I'm not sure what to do with last years balance and the proper adjusting or reversing journal entry.

    I have to do Per a physical count of office supplies, $3,141 of supplies remained at the end of 2010. The balance on the worksheet in the office supplies account represents last years ending balance of $2,500. During the year, $7,500 of office supplies was purchased and immediately expensed.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member

    Nov 28, 2010, 11:46 AM

    This is a duplicate post and I answered this on the other post.
    leakhana_som's Avatar
    leakhana_som Posts: 1, Reputation: 1
    New Member

    Dec 20, 2011, 10:45 PM
    6- Correcting Errors suspense : trail balance shows a total of debits of $347,800 and a total of credit of $362,350.
    After Adjusting for the following errors, what is the balance on the suspense account (10 Marks)
    a. A credit sale of $3,670 was incorrectly entered in the sales day book as $3,760
    b. A non-current asset with a carrying value of $7,890 was disposed of for $9,000. The only accounting entry was to debit cash
    c. The allowance for receivables was increased from $8,900 to $10,200 . The allowance account was debited in error.
    A. $26,150 debit
    B. $26,060 debit
    C. $26,240 debit
    D. $2,950 credit

    7- The following are the balance extract from his accounts
    Non- Current Assets 50,000
    Inventory 2,600
    Capital 28,000
    Receivable 4,500
    Allowance for receivables 320
    Cash 290
    Payables 5,000
    Sales 120,000
    Inventory Purchases 78,900
    Rental Expense 3,400
    Sundry expense 13,900
    Bank interest (Interest from other banks) 270

    • Rent of $200 has been adjusted from prepaid expense to prepaid
    • Inventory at the end of the year was $1,900
    • The allowance for receivable is to be $200

    1. Write down Trail balance, adjustment and the final balance in the work sheet below
    2. Prepare Financial Statement ( 30 Marks)

    Note : All inventory were bought to be sold

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