Okay so I'm supposed to make an adjusted trial balance for the following but I get some things wrong and I don't know what exactly I'm doing wrong.. please help..
E unadjusted trial balance of Mesa Inc. at the company's fiscal year end of December 31 follows:
MESA INC.
Trial Balance
December 31, 2006
Debit Credit
Cash $ 20,000
Accounts receivable 31,700
Merchandise inventory 28,750
Supplies 2,940
Prepaid insurance 1,980
Land 31,000
Building 150,000
Accumulated amortization—building $ 17,000
Equipment 45,000
Accumulated amortization—equipment 13,500
Accounts payable 36,600
Unearned sales revenue 4,000
Mortgage payable 150,600
Common shares 20,000
Retained earnings 21,425
Dividends 2,000
Sales 270,770
Sales returns and allowances 2,500
Sales discounts 3,275
Cost of goods sold 164,225
Salaries expense 29,950
Utilities expense 5,100
Interest expense 9,975
Income tax expense 5,500
$533,895 $533,895
Adjustment data:
The 12-month insurance policy was purchased on February 1, 2006.
There were $675 of supplies on hand on December 31.
Amortization expense for the year is $6,000 for the building and $4,500 for the equipment.
Salaries of $1,140 are accrued and unpaid at December 31.
Accrued interest expense at December 31 is $1,000.
Unearned sales revenue of $1,175 is still unearned at December 31. On the sales that were earned, the cost of goods sold was $2,200.
Of the mortgage payable, $9,400 is payable next year.
Income tax of $1,100 is due and unpaid.
_______________________
And this is what I did..
MESA INC.
Adjusted Trial Balance
December 31, 2006
Debit Credit
Cash $ 20,000
Accounts receivable 31,700
Merchandise inventory 28,750 - WRONG
Supplies 675
Prepaid insurance 330 - WRONG
Land 31,000
Building 150,000
Accumulated amortization—building $ 6,000 - WRONG
Equipment 45,000
Accumulated amortization—equipment 4,500 - WRONG
Accounts payable 36,600
Unearned sales revenue 1,175
Salaries payable 1,140
Interest payable 1,000
Income tax payable 1,100
Mortgage payable 141,200 -WRONG
Common shares 20,000
Retained earnings 21,425
Dividends 2,000
Sales 267,945 - WRONG
Sales returns and allowances 2,500
Sales discounts 3,275
Cost of goods sold 166,425
Salaries expense 31,090
Utilities expense 5,100
Insurance expense 165
Supplies expense 2265
Amortization expense 41,000 - WRONG
Interest expense 1,000 - WRONG
Income tax expense 6,600
Totals $ 568,875 $ 502,085
I can't seem to figure out how to do ammortization..
And for the sales.. I basically added the initial sales to the sales that were unearned before but now are earned.
It would be very helpful , thanks!
