I am working on a 10 column work sheet and I am not sure I have done it correctly, I am particularly confused with the Income statement and owners equity portion of the work sheet. Can someone please look it over and let me know if I have done it correctly or explain to me where I have went wrong.
Here is a copy of the assignment
Prepare a 10-column work sheet for fiscal year 2005, starting with the unadjusted trial balance
And including adjustments based on these additional facts:
a. The supplies available at the end of fiscal year 2005 had a cost of $3,200.
b. The cost of expired insurance for the fiscal year is $3,900.
c. Annual depreciation on equipment is $8,500.
d. The June utilities expense of $550 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $550 amount owed needs to be recorded.
e. The company’s employees have earned $1,600 of accrued wages at fiscal year-end.
f. The rent expense incurred and not yet paid or recorded at fiscal year-end is $200.
g. Additional property taxes of $900 have been assessed for this fiscal year but have not been paid or recorded in the accounts.
h. The long-term note payable bears interest at 1% per month. The unadjusted Interest Expense account equals the amount paid for the first 11 months of the 2005 fiscal year. The $240 accrued interest for June has not yet been paid or recorded. (Note that the company is required to make a $5,000 payment toward the note payable during the 2006 fiscal year.)
2. Use the work sheet to enter the adjusting and closing entries; then journalize them.
3. Prepare the income statement and the statement of owner’s equity for the year ended June 30 and the classified balance sheet at June 30, 2005.
Analysis Component
4. Analyze the following separate errors and describe how each would affect the 10-column work sheet. Explain whether the error is likely to be discovered in completing the work sheet and, if not, the effect of the error on the financial statements.
a. Assume that the adjustment for supplies used consisted of a credit to Supplies for $3,200 and a debit for $3,200 to Supplies Expense.
b. When the adjusted trial balance in the work sheet is completed, the $17,500 Cash balance is incorrectly entered in the Credit column.
Here is what I have completed so for, if someone could help me I would appreciate it.
Unadjusted Adjustments Adjusted Income Balance Sheet &
Trial Balance Trial Balance Statement Statement of
Owners Equity
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
101 Cash 17,500 11,800 17,500
126 Supplies 8,900 a 5,700 3,200
128 Prepaid insurance 6,200 b 3,900 2,300
167 Equipment 131,000 131,000
168 Accumulated depreciation—Equip. 25,250 c 8,500 16,750
201 Accounts payable 5,800 d 550 6,350
203 Interest Payable 0 h 240 240
206 Rent Payable 0 f 200 200
210 Wages Payable 0 e 1,600 1,600
213 Property taxes Payable 0 g 900 900
251 Long Term Notes Payable 24,000 24,000
301 S. Adams Capitol 77,660 77,660 77,660
302 S, Adams Withdrawals 30,000 30,000 30,000
401 Construction Fees Earned 134,000 134,000 134,000
612 Depreciation expense—Equip. 0 c 8,500 8,500 8,500
623 Wages Expense 45,860 e 1,600 47,460 47,760
633 Interest Expense 2,640 h 240 2,880 2,880
637 Insurance Expense b 3,900 3,900 3,900
640 Rent expense 13,200 f 200 13,400 13,400
652 Supplies expense 0 a 5,700 5,700 5,700
683 Property Taxes Expense 4,600 g 900 5,500 5,500
684 Repairs Expense 2,810 2,810 2,810
690 Utilities expense 4,000 d 550 4,550 4,550
Totals 266,710 266,710 21,590 21,590 264,500 270,200
Net Income 86500 160,000
Totals 73,500
