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need help please
I need help creating an adjusted trial balance sheet and an income statement. The info to make the adjusted trial entry is below all this... the net income should come out to be 5,815 and I can't figure this out
dec. 1st Aaron Jones invested the following assets in the business: cash, $6,500; supplies, $1,250; and office equipment, $7,200. Mr. Jones received common stock in an amount equal to his investment dec.2nd Paid $2,475 for rent for December 20X1 through February 28, 20X2. dec.3rd Paid $1,800 for a one year premium on property and casualty insurance. The policy covers the period December 1, 20X1 to November 30, 20X2 4th Received $3,500 cash from a client as an advance payment for services to be performed in the future. 5th Purchased additional office equipment on account from Payne Company for $1,800. 10th Paid $225 for a newspaper advertisement. 11th Paid Payne Company for part of the debt incurred on December 5, $900. 12th Billed clients for services performed on account, $1,200. 17th Received cash payment from client for services performed on this date, $2,100. 18th Paid $725 for supplies. 20th Billed clients for services performed on account, $1,100. 24th Received cash payment from client for services performed on this date, $1,850. 25th Received cash from clients as payment on account, $1,300. 30th Paid $330 for utilities for December. 31st Paid cash dividend of $2,100. a. Insurance expired during December is $150. b. Supplies on hand on December 31 are valued at $1,320. c. Depreciation of office equipment for December is $250. d. Rent expired during December is $825. e. Determined that company had performed $2,000 of the services for which it was paid on December 4th. |
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 Originally Posted by jjn8
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I agree with... hang on, need to scroll up... mh34.
What values do you have for the T-accounts. No one really wants to go and journalize all those entries for you. It's kind of boring. Show us the values of the T-acounts, Cash=100-50+150=200, etc. and it would make it much easier for us to tell you where you went wrong. |
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Ok I went through and did the ledger and came up with this trial balance
Debit Credit cash... 6695 accounts receivable... 1000 supplies... 1975 prepaid rent... 2475 prepaid insurance... 1800 office equipment... 9000 accounts payable... 900 unearned fees... 3500 common stock... 14950 dividends 2100 fees earned 6250 advertising expense... 225 utilities expense... 330 this is the info needed to make an adjusted trial balance a. Insurance expired during December is $150. b. Supplies on hand on December 31 are valued at $1,320. c. Depreciation of office equipment for December is $250. d. Rent expired during December is $825. e. Determined that company had performed $2,000 of the services for which it was paid on December 4th. Can you please help me make an adjusted trial balance and an income statement.I need to at least know my adjusted trial balance is correct |
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Adjusting Journal Entries
A) Dr. Insurance Expense 150 Cr. Prepaid Insurance 150 B) Dr. Supplies Expense 655 Cr. Supplies 655 Calculation = 1975-1320 C) Dr. Amortization Expense 250 Cr. Accumulated Amortization – Office Equipment 250 D) Dr. Rent Expense 825 Cr. Prepaid Rent 825 E) Dr. Unearned Revenue 2,000 Cr. Revenue 2,000 Adjusted trial balance: cash... 6695 accounts receivable... 1000 supplies... 1320 prepaid rent... 1650 prepaid insurance... 1650 office equipment... 9000 accounts payable... 900 unearned fees... 1500 common stock... 14950 dividends 2100 fees earned 8250 advertising expense... 225 utilities expense... 330 insurance expense…150 supplies expense…655 amortization expense…250 accumulated amortization – office equipment….250 rent expense…825 Company XYZ Income Statement For the month ended December 31, 2005 Fees Earned (Revenue) 8,250 Expenses: Advertising expense 225 Amortization expense 250 Insurance expense 150 Rent expense 825 Supplies expense 655 Utilities expense 330 TOTAL EXPENSES 2,435 NET INCOME 5,815 |
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If you have any other questions regarding how I got the answers, please ask.
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Thanks a lot. Now I know what I was doing wrong there
Does this balance sheet look right Assets: Cash... 6695 Accounts receiveable.. 1000 Supplies.. 665 Office equipment... 9000 Liabilities: Accounts payable... 900 Owners equity: Common stock... 14950 Fees earned 8250 Dividends... 2100 Current earnings.. 5150 |
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Company XYZ
Balance Sheet December 31, 2005 Current Assets: Cash 6695 Accounts receivable 1000 Supplies 1320 Prepaid rent 1650 Prepaid insurance 1650 TOTAL CURRENT ASSETS 12,315 Long-term Assets: Office equipment 9000 Less: accumulated amortization – office equipment 250 TOTAL LONG-TERM ASSETS 8,750 TOTAL ASSETS 21,065 Current Liabilities: Accounts payable 900 Unearned fees 1500 Total Current Liabilities 2,400 Shareholder's Equity: Common stock 14,950 Less: dividends 2,100 Add: Net Income 5,815 Total Shareholder's Equity 18,665 TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY 21,065 |
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I used my adjusted trial balance numbers.
Your balance sheet seems to be based on your adjusted trial balance numbers, which appears to be wrong. You have supplies valued at 665 instead of 1320 for example. |
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OK I see now... is this how I do the post closing trial balance
Cash debit 6695 Accounts rec debit 1000 Supplies debit 1320 Prepaid rent debit 1650 Prepaid insurance debit 1650 Office equipment debit 9000 Accumulated depreciation credit 250 Accounts payable credit 900 Unearned fees credit 1500 Common stock credit 14,950 Retained earnings credit 3,715 |
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Yeah, the accounts and numbers appear to be right.
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