[mtolias]

I have been working on a 6 column work sheet and the adjusted trial balance does not equal, can some one take a look at what I have completed and explain to me where I have went wrong.

Here is a copy of the assignment

Cash.. . $ 13,000
Accounts receivable.. . 0
Supplies.. . 5,500
Equipment.. . 130,000
Accumulated depreciation—
Equipment.. . $ 25,000
Interest payable.. . 0
Salaries payable.. . 0
Unearned member fees.. . 14,000
Notes payable.. . 50,000
T. Allen, Capital.. . 58,250
T. Allen, Withdrawals.. . 20,000
Member fees earned.. . 53,000
Depreciation expense—
Equipment.. . 0
Salaries expense.. . 28,000
Interest expense.. . 3,750
Supplies expense.. . 0
Totals.. . $200,250 $200,250
Required
1. Complete the six-column table by entering adjustments that reflect the following information:
a. As of December 31, 2005, employees had earned $900 of unpaid and unrecorded salaries. The
Next payday is January 4, at which time $1,600 of salaries will be paid.
b. The cost of supplies still available at December 31, 2005, is $2,700.
c. The notes payable requires an interest payment to be made every three months. The amount
Of unrecorded accrued interest at December 31, 2005, is $1,250. The next interest payment,
At an amount of $1,500, is due on January 15, 2006.
d. Analysis of the unearned member fees account shows $5,600 remaining unearned at December
31, 2005.
e. In addition to the member fees included in the revenue account balance, the company has earned
Another $9,100 in unrecorded fees that will be collected on January 31, 2006. The company
Is also expected to collect $8,000 on that same day for new fees earned in January 2006.
f. Depreciation expense for the year is $12,500.
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.
166 Chapter 4 Completing the Accounting Cycle
Check (3) Total assets, $120,250;
Current liabilities, $14,290; Net income,
$39,300
Check (1) Adjusted trial balance
Totals, $224,000


HERE IS A COPY OF WHAT I HAVE COMPLETED

Account Title Unadjusted Trial Adjustments Adjusted Trial
Balance Balance
Debit Credit Debit Credit Debit Credit
Cash 13,000 13,000
Accounts receivable 0 e 9,100 9,100
Supplies 5,500 b 2,800 2,250
Equipment 130,000 130,000
Accumulated depreciation—EQP $25,000 f 12,500 37,500
Interest payable 0 c 1,250 1,250
Salaries payable 0 a 900 900
Unearned member fees 14,000 d 5,600 8,400
Notes payable 50,000 50,000
T. Allen, Capital 58,250 d 5,600 63,850
T. Allen, Withdrawals 20,000 20,000
Member fees earned 53,000 e 9,100 62,100
Depreciation Expense - Eqp 0 f 12,500 12,500
Salaries expense 28,000 a 900 28,900
Interest expense 3,750 c1,250 5,000
Supplies expense 0 b 2,800 2,800
Totals 200,250 200,250 32,150 32150 225,700 221850

[vhopkins]

On your unearned membership fees the adjustment should be 8,400 and the amount in the CR column of your adjusted trial balance should be 5,600. The reason for this is because the member fees account shows 5,600 still remaining to be collected. So you subtract that amount from the 14,000 to get the amount that has been collected. You will then credit the capital account by the 8,400, the amount that has been collected. On the supplies you would take the 2,700 dollars it states that you still have on hand and not used subtract that out of the amount on your adjusted trial balance and you get 2,800 that will be your adjusted amount in your adjustment column. This is showing that you used 2,800 worth of supplies and have 2,700 left. Those are the only two mistakes I can see that you made. Good job!

[vhopkins]

On your unearned membership fees the adjustment should be 8,400 and the amount in the CR column of your adjusted trial balance should be 5,600. The reason for this is because the member fees account shows 5,600 still remaining to be collected. So you subtract that amount from the 14,000 to get the amount that has been collected. You will then credit the capital account by the 8,400, the amount that has been collected. On the supplies you would take the 2,700 dollars it states that you still have on hand and not used subtract that out of the amount on your adjusted trial balance and you get 2,800 that will be your adjusted amount in your adjustment column. This is showing that you used 2,800 worth of supplies and have 2,700 left. Those are the only two mistakes I can see that you made. Good job!

[morgaine300]

Old thread. Please try to pay attention to the dates.