I have an accounting project to do on adjusting entries. Yes, this is a beginning level class... so maybe you guys can help me.

Apparently I'm doing something wrong and I really can't figure out what it is.
So I can't really move on to completing the project yet.

I'm getting a couple values wrong from the start...
(They are in RED in the attachment).

What am I doing wrong?

I REALLY REALLY appreciate it.
Thank you very much.




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These are the instructions:

1. Open the accounts listed in the trial balance, inserting their August 31 unadjusted balances. Also open the Income Summary account. Use four column accounts. Date the balances of the following accounts as of August 1: Prepaid Rent, Supplies, Furniture, Accumulated Depreciation – Furniture, Building, Accumulated Depreciation – Building, Unearned Commission Revenue, Common Stock, and Retained Earnings.

2. Complete the adjusted trial balance for the month ended August 31.

The trial balance prepaid rent was 1,290 while the rent remaining is 1,050. You need to adjust for the 240 that was used. Debit Rent Expense for 240 and Credit Prepaid Rent for 240.

It looks like you made the same error with unearned commission. The trial balance was 8,900 while the remaining balance was 7,750. Debit unearned commission revenue for 1,150 and credit commission revenue for 1,150.

The amounts it told you in the beginning were not the amounts to adjust for, only the amounts remaining. You have to subtract that from the beginning trial balance to calculate the amount to adjust for.

You are amazing. Thank you VERY VERY much for your help. I really appreciate it.
It makes sense now!

A: Prepaid rent still in force at Aug 31, $1050

Basically this is saying that you have $1,050 left in the prepaid rent account.

Yet your trial balance shows a balance of $1,290

Therefore, you need to record rent expense of (1,290 – 1,050) $240

Therefore,
Dr. Rent Expense 240
Cr. Prepaid Rent 240


F: Unearned commission revenues still unearned at Aug. 31, $7,750

At Aug. 1, you had $8,900 in Unearned Revenue.

Now you only have 7,750 in it.

Therefore, you must have EARNED (8,900 – 7,750) $1,150 of it

Dr. Unearned Revenue 1,150
Cr. Revenue 1,150

When you record revenue, you credit it.


P.S.
I love your graphics, very nicely done.

A: Prepaid rent still in force at Aug 31, $1050

Basically this is saying that you have $1,050 left in the prepaid rent account.

Yet your trial balance shows a balance of $1,290

Therefore, you need to record rent expense of (1,290 – 1,050) $240

Therefore,
Dr. Rent Expense 240
Cr. Prepaid Rent 240


F: Unearned commission revenues still unearned at Aug. 31, $7,750

At Aug. 1, you had $8,900 in Unearned Revenue.

Now you only have 7,750 in it.

Therefore, you must have EARNED (8,900 – 7,750) $1,150 of it

Dr. Unearned Revenue 1,150
Cr. Revenue 1,150

When you record revenue, you credit it.


P.S.
I love your graphics, very nicely done.
Thank you so much for breaking it down for me. I appreciate your help! I really do. And thanks for the comment about the graphics! Hehe. I tried attaching the Excel document but couldn't. Then I tried putting it on Word. That took up too much space. Finally I just decided to take a screenshot of it and put it on paint and make it a JPEG. :p It worked!

Thanks again. And Happy Valentine's Day. :D

You're welcome

Prepaid rent still in force, $400.

inventory units at year end 10, original cost $40, current net selling price per unit $60, current replacement cost per unit $50.
at what amount should company report ending inventory if the lower of cost or net realisable value rule is applied for that inventory.