Preparing a worksheet and adjustments
adjusting balance for L&M Bookkeeping as of the end of 2005 fiscal year. The June 30, 2004, credit balance of the owner's capital account was $52,660, and the owner invested $25,000 cash in the company during the 2005 fiscal year.
Unadjusted Trial Balance:
Cash = 17,500
Supplies = 8,900
Prepaid Insurance = 6,200
Equipment = 131,000
Accumulated depreciation-Equipment = 25,250
Accounts payable = 5,800
interest payable = 0
rent payable = 0
wages payable = 0
property taxes payable = 0
S. Adams, Capital = 77,660
S. Adams, Withdrawals = 30,000
Construction fees earned = 134,000
depreciation expense-equipment = 0
wages expense = 45,860
interest expense = 2,640
insurance expense = 0
rent expense = 13,200
supplies expense = 0
property taxes expense = 4,600
repairs expense = 2,810
utilities expense = 4,000
I need to prepare a 10-column worksheet for the fiscal year 2005, starting with the unadjusted trial balance and include adjustments based on:
Supplies available at the end of fiscal year 2005 that had a cost of $3200.
The cost of expired insurance for the fiscal year is $3900.
Annual depreciation on equipment is $8500.
June utilities expense of $550, is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared, but needs to be recorded.
Employees have earned $1600 of accrued wages at fiscal year-end.
Rent expense incurred and not yet paid or recorded at fiscal year-end is $200.
Additional property taxes of $900 have been assessed for this fiscal year but have not been paid or recorded in the accounts.
Long-term not 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.
The company is required to make a $5000 payment toward the note payable during the 2006 fiscal year.
I basically want to make sure that I made the right decisions, and that I recorded the information correctly. Thanks.
