Hi I need help! I am trying to do a worksheet but is having problems with the adjustments, I uploaded the transaction for April 31, my problem is the AdjustedTrial Balance is not balancing, I think the adjusting entries is correct. What am I doing incorrect. :confused:

The Adjusments are for:
a) The monthly insurance cost is $50.00
b) Office Supplies on hand on April 30,2007, amount to $180.00
c) The office equipment was purchased on April 1, 2006. On that date, it had an estimated useful life of 10 years.
d) On September 1, 2006, the automobile was purchased; it had an estimated useful life of five years.
e) A deposit is received in advance of providing any services for first-time customers. Amounts received in advance are recorded initially in the account Unearned Commissions. Based on services provided to these first-time customers, the balance in this account at the end of April should be $5,000.00
f) repeat customers are allowed to pay for services one month after the date of the sale of their property. Services rendered during the month but not yet collected or billed to these customers amount to $1,500.00
g) Interest owed on the note payable but not yet paid amounts to $20.00
h) salaries owed to employees but unpaid at the end of the month amount to $2,500.00

Since you didn't include any numbers for the adjusted trial balance, there isn't anything to check. If the unadjusted T/B balances and the adjusting entries balance, then it's got to be in the math somewhere going into the adjusted trial balance. i.e. you added wrong, you missed a number, you put a balance on the wrong side, you copied a number wrong, etc.

However, you do have an adjusting entry missing. That isn't putting you out of balance, but it's still missing. You never did (f). If the services were performed, then you have earned it and it needs recorded on the books. That's accrued revenue. (Kinda like the accrued salaries, except revenue instead of expense.)

I label it and included (f) but my adjusted Trial Balance is still giving me problems. What am I doning incorrect.

What is "customer service" account supposed to be?

You've also created a new revenue account for no reason. The revenue in (f) is the same revenue as everything else. It's not a separate account just because the customers haven't paid it yet. You've still earned it, and it's the same revenue as everything else.

And I STILL cannot tell you what's wrong with you adjusted trial balance because you STILL aren't including one. How can I check something that isn't there??

Ok I thought I had to open a new account for everything so I removed (f) and I put it in commission earned. What do I do from here.

It says you haven't collected it. Where do you put revenues you haven't collected? You've probably made this entry 50 times in other problems. Don't let it being an "adjusting entry" change that.

OK I changed it, what do I do now?

If you've got all the adjustments, you still need to do the adjusted trial balance, the thing you originally said wasn't balanced but doesn't seem to exist in your file. So far I've never seen anything that doesn't balance.

Some of the accounts get updated with the adjustments, so you have to get a whole new set of balances with those adjustments accounted for. That's what the adjusted trial balance is for.

Remember that:
*all accounts must be listed in the adjusted trial balance or you won't balance - so be sure to carry over balances of all accounts even if there was no adjusting entry (that is, 1000 + 0 still = 1000)
*numbers on the same side add - debit and debit add, credit and credit add
*numbers on opposite side subtract - debit and credit go against each other, but the balance should remain on the normal side

Then add up all your new numbers in the adjusted trial balance columns to see if they match. If not, come back with your updated file.

This part is basically all math.

As you see I've tried but my adjusted trial balance is still coming up incorrect. :confused:

Something is screwy with the file. I ended up with a bunch of jibberish. Can you try again? I wonder if it's cause it's a "copy of" -- not sure what that is doing.

My Adjusted Trial Balance is not balancing what am I doing incorrect :confused:

You still have (f) wrong, but that isn't what's putting you out of balance. Your adjusting entries balance; they just aren't correct.

(f) is customers who get to pay at a later date. An unearned accounts is a deferral - that's when they've paid you ahead of time and you haven't earned it yet. Those are opposites. If you have earned it but the customers haven't paid yet, that has nothing to do with UNearned -- after all, you earned it already. But they still owe you. Hence, receivables.

As for the adjusted being out of balance:
a) you didn't subtract the credit
c) credit and credit add... when they're on the same side they add; don't automatically assume a credit is a subtraction - it's a credit account so a credit adds
d) ditto
h) ditto, except they're both debits

Looks like you're trying to just subtract everything, instead of looking at what effect the adjusting entry would have on the account. It doesn't matter that they are adjusting entries. Entries are entries.


You are defeating the entire purpose of why you choose to debit or credit an account.

Debit accounts add on the debit side and subtract on the credit side. Therefore, if you want to add to the account, you debit. If you want to subtract, you credit. If you don't add/subtract correctly, you've defeated the purpose of choosing debit/credit.

Credit accounts add on the credit side and subtract on the debit side. Same deal but opposite side.

Like (c) for example -- if you don't add them, what was the point of crediting the account to begin with? You credited it for the entire purpose of adding to it.

If none of that made any sense, then perhaps we should review debit/credit rules?

I believe I did it, or am I still incorrect :o

You've got it. :):)

I think I got it now that feel good :p but how do I go about with the Post Closing Trial Balance I looked all over for an example but no luck.

How did the revenue get split into 2 accounts again. I thought I got that straightened up once. All of the revenue is commissions so there should only be one account. The fact that it is used in adjusting entries doesn't create a new revenue account. Notice (e) for instance - mentions unearned commissions. Well, once you earn them, they're commissions earned. Same account that was already there.

A post-closing trial balance is a little silly to have on a worksheet. Haven't seen that one before. You have to do closing before you do a post-closing trial balance. It should theoretically be done off the ledger accounts. Part of the purpose is to see that everything is still balancing OK after doing all the closing entries and posting them. If you just do it on the worksheet, there isn't much point.

Dividends, revenues and expenses all close out to retained earnings. Once that is done, all of those accounts will have zero balances and retained earnings will have been updated. Everything above retained earnings remains the same because they aren't in the closing process.

Did this problem not have you do statements and closing entries? The numbers on the post-closing trial balance are exactly the same as the ones on the balance sheet. The real balance sheet, not the worksheet one, because the retained earnings would have been updated.

Sir I believe I got it I got the Retained Earning:

Beginning Balance-----40,000
Net Income-------------9,743
Dividends--------------(2,500)
Ending Balance--------47,243

We both stayed up whole night with this are we correct ;)

You got it, Peachey. :)

You've been around here so much you're getting to be like my regular students.

Now that you have it right, go to bed, huh? :p

P.S. I'm not a sir. And I don't think Janelle is either.

(I'm totally amazed that no one ever seems to know who Morgaine is. Doesn't anyone around here read or watch movies?)

Thank you a lot know I no how to make up a worksheet, oh yes who is morgaine?

It's a variation on Morgan LeFay, King Arthur's step-sister. However, I am the good Morgaine version, not the evil one. :-)

EDIT: Erg, half-sister not step-sister!