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Reti · Aug 23, 2009, 09:53 PM

Hi,

I have some problems with getting the correct result of adjusted trial balance. Can somebody help me, please? And this is very urgent. I have just a few days to do this. Thanks.

1. The following information has been supplied by Classic Furniture Repairs.

Classic Furniture Repairs: Trial Balance as at 31 December, 1998

Cash at bank $ 2 500 Capital – Jones $ 27 600
Advertising 3 300 Repair fees 92 000
Equipment 21 000 Accum. Dep’n –equip’t 8 400
Office furniture 4 000 Accum. Dep’n – office furn. 800
Vehicle 24 000 Accum. Dep’n – vehicle 6 000
Insurance 3 400 Loan – AC Finance 7 000
Interest 8 400
Stock of Repair materials 22 800
Rent 21 000
Assistant’s wages 23 000
Debtors 1 000
Telephone 740
Stock of Stationery 660
Term Deposit 6 000
$ 141 800 $ 141 800

Note: Stock of repair materials listed here was as at the beginning of the
Period - 1st January 1998
The asset approach has been taken with regard to repair materials.

Adjustments required:

1. Stock of repair materials as at 31 December 1998 was $800

2. The term deposit was taken out on 1 June 1998 for 12 months and is returning 9% per annum. No interest has been received as yet.

3. Insurance paid in advance amounted to $100

4. Telephone expense owing is $120.

5. The repair fees in the trial balance includes $2 000 which has been paid in advance for work to be done in January 1999.

6. Stationery on hand as at 31 December 1998 was $140

Depreciation entries required for the year:
• Vehicle 25% p.a on the reducing balance
• Equipment 20% p.a on straight line method
• Office furniture 10% p.a straight line method

7. Prepare the general ledger accounts for the following expense and revenue accounts (based on the updated trial balance): repair materials, interest revenue, insurance, telephone, repair fees and stationery.

I can't understand which accounts would be in the adjusted trial balance and what would be the total of the debit and credit side.

Reti · Aug 23, 2009, 10:10 PM

p.s. this is what I came up with

Classic Furniture Repairs: Adjusted Trial Balance as at 31 December, 1998

Cash at bank $ 2 500
Capital – Jones $ 27 600
Advertising 3 300
Repair fees revenue 90 000
Equipment 21 000
Unearned rev. fees 2 000
Office furniture 4 000
Accum. Dep'n – equipment 12 600
Vehicle 24 000
Accum. Dep'n – Office fur. 1 200
Prepaid Insurance 100
Accum. Dep'n – Office fur. 10 500
Insurance Expense 3 300
Loan – AC Finance 7 000
Interest 8 670
Stock of Repair materials 800
Material expenses 22 000
Rent 21 000
Assistant's wages 23 000
Debtors 1 000
Telephone 860
Stock of Stationery 140
Stationary Expense 520
Term Deposit 6000
______
$ 142190
$ 150 900

morgaine300 · Aug 24, 2009, 12:34 AM

You actually got most of this right. Which I'm certainly glad of, because without seeing all your actual entries, it can be very difficult to figure out what went wrong. Since most of it is correct, it was much easier for me to narrow down the mistakes.

It's easier to check your work if you actually include all of it and not just your answers. It's also useful to be sure to include the word "expense" on things that are expenses. (There are times it can be hard to tell.) It also helps if you put Dr and Cr on everything - we can't assume you've done all the normal balances properly.

And don't they teach you to put these accounts in order?

Anyway, I don't know where you're getting the debit total of $142,190, because what you have there doesn't total that. Oddly, it's off by 8400, which was the original amount in interest expense. That's very odd, because you have a balance of 8670, like somehow you included the extra 270 but not the original 8400. Very weird.

NEVER EVER do entries that don't balance. NEVER. When you do that, you will NEVER balance when you get done. Take a look at five entries you did that never had another side. The telephone due, the interest, and the 3 depreciations never had another side. And... this is the reason you don't balance. Only one of your entries is outright incorrect. The reason you don't balance is because you have five entries that don't have both a debit and credit. That should have been very easy to spot. (Which is what made it easier for me to find.) Fix those and you'll balance.

Now, one of your entries is just incorrect however. It's also the interest, which is also out of balance. It's not interest expense. It says that the interest was on the term deposit. That's an asset that earns interest. So it's not interest expense you're accruing, but interest revenue. The dollar amount is also off, but that may be because you calculated it on the wrong thing, I don't know.

That's it. Try to see if you can fix those items. Your totals should be 151335.

Reti · Aug 24, 2009, 04:59 AM

Originally Posted by morgaine300

You actually got most of this right. Which I'm certainly glad of, because without seeing all your actual entries, it can be very difficult to figure out what went wrong. Since most of it is correct, it was much easier for me to narrow down the mistakes.

It's easier to check your work if you actually include all of it and not just your answers. It's also useful to be sure to include the word "expense" on things that are expenses. (There are times it can be hard to tell.) It also helps if you put Dr and Cr on everything - we can't assume you've done all the normal balances properly.

And don't they teach you to put these accounts in order?

Anyway, I don't know where you're getting the debit total of $142,190, because what you have there doesn't total that. Oddly, it's off by 8400, which was the original amount in interest expense. That's very odd, because you have a balance of 8670, like somehow you included the extra 270 but not the original 8400. Very weird.

NEVER EVER do entries that don't balance. NEVER. When you do that, you will NEVER balance when you get done. Take a look at five entries you did that never had another side. The telephone due, the interest, and the 3 depreciations never had another side. And... this is the reason you don't balance. Only one of your entries is outright incorrect. The reason you don't balance is because you have five entries that don't have both a debit and credit. That should have been very easy to spot. (Which is what made it easier for me to find.) Fix those and you'll balance.

Now, one of your entries is just incorrect however. It's also the interest, which is also out of balance. It's not interest expense. It says that the interest was on the term deposit. That's an asset that earns interest. So it's not interest expense you're accruing, but interest revenue. The dollar amount is also off, but that may be because you calculated it on the wrong thing, I don't know.

That's it. Try to see if you can fix those items. Your totals should be 151335.

Sorry for the accounts. It was my mistake for not putting them in order. So here it is:

Classic Furniture Repairs: Adjusted Trial Balance as at 31 December, 1998

DR
Cash at bank $ 2 500
Advertising 3 300
Equipment 21 000
Office furniture 4 000
Vehicle 24 000
Prepaid Insurance 100
Insurance Expense 3 300
Interest 8 670
Stock of Repair materials 800
Material expenses 22 000
Rent 21 000
Assistant’s wages 23 000
Debtors 1 000
Telephone 860
Stock of Stationery 140
Stationary Expense 520
Term Deposit 6000
TOTAL 142 190

CR
Capital – Jones $ 27 600
Repair fees revenue 90 000
Unearned rev. fees 2 000
Accum. Dep’n – equipment 12 600
Accum. Dep’n – Office fur. 1 200
Accum. Dep’n – Office fur. 10 500
Loan – AC Finance 7 000
TOTAL 150 900

Regarding the interest, I've been told by my tutor that I need to include 270 $ in, nomatter that the interest still isn't earned. So 270 $ is from half year deposit that should be included in that accounting period. Also, I've been told that the depreciation accounts have another side - equipment, vehicle and office furniture, and the amount of the equipment, vehicle and office furniture should have the original amount, but the another side should increase. Here is the previous results that I came up with

Adjustments required:

1. Stock of repair materials as at 31 December 1998 was $800

Adjusting:

Materials a/c
DR
Jan 1 Cash at bank 22 800
CR
Dec 31 Stock of materials 800

Stock of materials a/c
DR
Dec 31 Materials 800

Closing:

Materials a/c
DR
Jan 1 Cash at bank 22 800

CR
Dec 31 Stock of materials 800
Dec 31 Profit and Loss 22 000

Reversing entry:

Materials a/c
DR
Jan 1 Cash at bank 22 800
1999 Jan 1 800
CR
Dec 31 Stock of materials 800
Dec 31 Profit and Loss 22 000

Stock of materials a/c
DR
Dec 31 Materials 800
CR
Jan 1 Materials 800

2. The term deposit was taken out on 1 June 1998 for 12 months and is returning 9% per annum. No interest has been received as yet.

Interest for 12 months of $ 6000 deposit = 540
Interest for 6 months (from Jan 1 to June 1 1998) = 270

Adjusting:

Interest revenue a/c
DR
Jun 1 Interest for 12 months 540
CR
Dec 31 Unearned revenue 270

Unearned interest a/c
DR
Dec 31 Interest for 6 months 270

Closing:

Interest revenue a/c
DR
Jun 1 Interest for 12 months 540
CR
Dec 31 Unearned revenue 270
Dec 31 Profit and Loss 270

Reversing entry:

Interest revenue a/c
DR
Jun 1 Interest for 12 months 540
1999 Jan 1 270
CR
Dec 31 Unearned revenue 270
Dec 31 Profit and Loss 270

Unearned interest a/c

DR
Dec 31 Interest for 6 months 270
CR
Jan 1 Interest for 6 months 270

3. Insurance paid in advance amounted to $100

Adjusting:

Insurance expense a/c
DR
Jan - Dec Cash at bank 3 400
CR
Dec 31 Prepaid expenses 100

Prepaid expenses a/c
DR
Dec 31 Insurance expense 100

Closing:

Insurance expense a/c
DR
Jan-Dec Cash at bank 3 400
CR
Dec 31 Prepaid expenses 100
Dec 31 Profit and Loss 3 300

Reversing entry:

Insurance expense a/c
DR
Jan-Dec Cash at bank 3 400
1999 Jan 1 100
CR
Dec 31 Prepaid expenses 100
Dec 31 Profit and Loss 3 300

Prepaid expenses a/c
DR
Dec 31 Insurance expense 100
CR
Jan 1 Insurance expense 100

4. Telephone expense owing is $120.

Adjusting:

Telephone a/c
DR
Jan-Dec Cash at bank 620
Dec 31 Accrued Expense 120

Accrued expense a/c
DR
1998 Dec 31 Telephone 120

Closing:

Telephone a/c
DR
Jan-Dec Cash at bank 620
Dec 31 Accrued Expense 120
CR
Dec 31 Profit and Loss 740

Reversing entry:

Telephone a/c
DR
Cash at bank 620
Dec 31 Accrued Expense 120
1999 Jan 1 Accrued Expense 120
CR
Dec 31 Profit and Loss 740

Accrued expense a/c
DR
Jan 1 Telephone 120
CR
Dec 31 Telephone 120

5. The repair fees in the trial balance includes $2 000 which has been paid in advance for work to be done in January 1999.

Adjusting:

Fees a/c
DR
Dec 31 Unearned Fees 2 000
CR
Jan-Dec Cash 92 000

Unearned Fees a/c
CR
Dec 31 Fees 2 000

Closing:

Fees a/c
DR
Dec 31 Unearned Fees 2 000
Dec 31 Profit and Loss 90 000
CR
Jan-Dec Cash 92 000

Reversing entry:

Fees a/c
DR
Dec 31 Unearned Fees 2 000
Dec 31 Profit and Loss 90 000
CR
Jan-Dec Cash 92 000
1999 Jan 1 Unearned fees 2 000

Unearned Fees a/c
DR
Jan 1 Fees 2 000
CR
Dec 31 Fees 2 000

6. Stationery on hand as at 31 December 1998 was $140

Adjusting:

Stationary a/c
DR
Jan 1 Cash at bank 660
CR
Dec 31 Stationary on hand 140

Stationary on hand a/c
DR
Dec 31 Stationary 140

Closing:

Stationary a/c
DR
Jan 1 Cash at bank 660
CR
Dec 31 Profit and Loss 520
Dec 31 Stationary on hand 140

Reversing entry:

Stationary a/c
DR
Jan 1 Cash at bank 660
Dec 31 Profit and Loss 520
1999 Jan 1 140
CR
Dec 31 Stationary on hand 140

Stationary on hand a/c
DR
Dec 31 Stationary 140
CR
Jan 1 Stationary 140

Depreciation entries required for the year:

• Vehicle 25% p.a on the reducing balance

24 000 x 25% = 6 000 24 000 – 6 000 = 18 000

Depreciation of vehicle a/c
DR
Dec 31 Accum. Depreciation - Vehicle 6 000

Accumulated Depreciation of vehicle a/c
CR
Dec 31 Depreciation of Vehicle 6 000

• Equipment 20% p.a on straight line method

21 000 x 20% = 4 200 21 000 – 4 200 = 16 800

Depreciation of equipment a/c
DR
Dec 31 Accum. Depreciation- Equipment 4 200

Accumulated Depreciation of equipment a/c
CR
Dec 31 Depreciation of equipment 4 200

• Office furniture 10% p.a straight line method

4 000 x 10% = 400 4 000 – 400 = 3 600

Depreciation of office furniture a/c
DR
Dec 31 Accum. Depreciation- Office furniture 400

Accumulated Depreciation of office furniture a/c
CR
Dec 31 Depreciation of office furniture 400

(a) Prepare all adjusting entries in the general journal.

DR
1998
Dec 31 Stock of materials 22 000
CR
Materials 22 000
Adjusting entry for stock of materials

DR
Unearned Interest 270
CR
Interest revenue 270
Adjusting entry for unearned interest

DR
Prepaid expense 100
CR
Insurance expense 100
Adjusting entry for Insurance paid in advance

DR
Telephone 120
CR
Accrued expense 120
Adjusting entry for telephone owing

DR
Repair Fees -Revenue 2 000
CR
Prepaid Repair Fees (Revenue received in advance) 2 000
Adjusting entry for unearned revenue

DR
Stationery Expense 520
CR
Stock of Stationery 520
Adjusting entry for stationary on hand

DR
Dec 31 Depreciation of Vehicle 4,500
CR
Accum. Depreciation of Vehicle 4,500
Adjusting entry for depreciation-
Reducing balance method 25% p.a.

DR
Depreciation of Equipment 4 200
CR
Accum. Depreciation of Equipment 4 200
Adjusting entry for depreciation-
Straight line method 20% p.a.

DR
Depreciation of Office furniture 400
CR
Accum. Depreciation of Office furniture 400
Adjusting entry for depreciation-
Straight line method 10% p.a.

morgaine300 · Aug 24, 2009, 07:04 PM

Sorry this is so long, but there's just a lot of problems here.

Sorry for the accounts. It was my mistake for not putting them in order. So here it is:

They still aren't in order. "In order" doesn't mean listing all debits first and then all credits second. It means putting things together: assets together, liabilities together, etc. You've got accumulated depreciation separated from the asset it belongs with, and expenses mixed randomly in with assets, etc. That's what I'm talking about. Did you never learn to put these in order? It's just more difficult to check when they're all mixed up like that.

You also haven't changed anything at all. All you have done is present the same balances, which I have already checked, and already discovered what was wrong. I've already told you what was incorrect but you haven't changed a thing. So you're still out of balance, with the same errors. The only thing I can do is re-iterate what is wrong.

Regarding the interest, I've been told by my tutor that I need to include 270 $ in, nomatter that the interest still isn't earned. So 270 $ is from half year deposit that should be included in that accounting period.

I don't know if your tutor just told you that you need to "include interest," which is a correct statement, or if your tutor told you to do exactly what you did, because it isn't correct. First, the dollar amount isn't correct. (See below.) And I didn't say there was no interest. I said it wasn't interest expense, but rather interest revenue. I even bolded that it wasn't expense to draw your attention to it. I can't help you if you don't pay attention to stuff like that. Notice in your paragraph you used the term "earned." Earned is revenue, not expense.

Also, I've been told that the depreciation accounts have another side - equipment, vehicle and office furniture, and the amount of the equipment, vehicle and office furniture should have the original amount, but the another side should increase.

I'm not sure I understand what you're saying. The debit asset accounts (equipment, furniture and vehicle) are not changed or affected by adjusting entries. So those are the "original" amount. The credit side is the accumulated depreciation, and those do increase. But when I said "other side" I'm not meaning the plant asset debit side versus the accumulated depreciation credit side. I'm referring to the ENTRY having two sides: both a debit and credit. The original asset is not in the entry. But the entries still need to have a debit in them.

You will NEVER balance if your entries don't balance. Therefore, all of your entries need to balance. ALL of them. And whatever is in those entries must be reflected in the adjusted trial balance. See some comments below, because I do see where you've got some of the stuff in the entry, but that it's never been posted to the account and re-balanced for the sake of your adjusted trial balance. If you don't post them, you still won't balance.

Adjusting:

Materials a/c
DR
Jan 1 Cash at bank 22 800
CR
Dec 31 Stock of materials 800

Stock of materials a/c
DR
Dec 31 Materials 800

I'm sorry, but this whole top section I have no idea what you're doing, but these are not proper entries. It almost looks like some of it was the unadjusted balances. But they aren't all that either. So they aren't unadjusted balances and they aren't proper entries, either one. So I'm not sure what they are.

I've deleted most of the top section of "entries" and just left this one example.

Why is cash in there? The 22,800 isn't related to cash in any way whatsoever. You've repeated cash several times throughout this stuff, when cash is not part of the entry. You've even repeated 22,800 several times. See, that's one where it almost looks like you're trying to put a beginning balance or something, except 22,800 was never in cash and has nothing to do with cash. And Jan 1 should not be in an entry.

I've seen like 4 times you've credited 800 to materials and have no clue why you keep repeating that.

You keep trying to "debit" things that aren't even accounts. (See below for example of that.)

Closing entries aren't done until after the adjusted trial balance. That is, closing entries will NOT reflect in your adjusted trial balance, so I don't know why any of that is included. Reversing entries aren't done until the beginning of the next period.

2. The term deposit was taken out on 1 June 1998 for 12 months and is returning 9% per annum. No interest has been received as yet.

Interest for 12 months of $ 6000 deposit = 540
Interest for 6 months (from Jan 1 to June 1 1998) = 270

The term deposit being taken out at the beginning of June doesn't mean that interest would accrue on it BEFORE you ever had it. It would start accruing at the time you got it, continuing through the end of the year. If you stuck money in the bank in June, would they give you interest from Jan through May? (Oh, and June 1 isn't six months.)

Adjusting:

Interest revenue a/c
DR
Jun 1 Interest for 12 months 540
CR
Dec 31 Unearned revenue 270

Unearned interest a/c
DR
Dec 31 Interest for 6 months 270

How is something dated June 1 part of a year-end adjusting entry? "Interest for 12 months" isn't an account and you can't debit it. (You've done that several times, try to debit or credit something that isn't even an account.) And 540 is not the number to be used -- that was just part of a calculation, a means to an end. You can't debit a calculation. And you said yourself the interest was earned, so how can it be unearned?

Closing:

Interest revenue a/c
DR
Jun 1 Interest for 12 months 540
CR
Dec 31 Unearned revenue 270
Dec 31 Profit and Loss 270

Unearned revenue is a liability account. It doesn't close. Closing entries shouldn't even be here, but the point remains that it's a liability, which is a permanent acct and doesn't close.

DR
Prepaid expense 100
CR
Insurance expense 100
Adjusting entry for Insurance paid in advance

Now this is a proper entry and it's correct. (Except that you called it prepaid insurance elsewhere. Be consistent.)

DR
Telephone 120
CR
Accrued expense 120
Adjusting entry for telephone owing

But you never got the credit in your adjusted trial balance. This is part of what I said the first time: that you had 5 entries that didn't have another side to them. I specifically mentioned the telephone one - so you should have immediately checked this entry to look for what happened here. This credit isn't in your adjusted trial balance. This is exactly the kind of thing that's putting you out of balance - if something isn't there, it cannot balance.

DR
Dec 31 Depreciation of Vehicle 4,500
CR
Accum. Depreciation of Vehicle 4,500
Adjusting entry for depreciation-
Reducing balance method 25% p.a.

This is the correct entry. So what was all that other stuff you did further up with depreciation?? Also note again that you've never recorded this debit into your adjusted trial balance. When I pointed out that your depreciation didn't have a debit, why didn't you come look at this and get these debits into your adjusted trial balance?

What I'm calling the top section and bottom section is where it splits at "(a) Prepare all adjusting entries in the general journal. " What you have below there in the bottom section is the proper way to do entries. (They aren't all correct, but they are at least proper format for an entry and make sense.)

I don't know what all the stuff in the top section is. You've titled them "entries" (adjusting, closing or reversing), but none of that top section is proper entries. I would have been better not to see them, cause they're just confusing me, and they absolutely are not what you have reflected in your adjusted trial balance. So I have no clue what all that is about.

What it comes down to is that you have the same six errors you had the first time. You've got five entries that don't have both sides in the adjusted trial balance. And then there's the interest that is revenue and not expense.

If you don't understand one of them, ask. But don't just ignore them and do nothing. You won't fix anything that way.

Reti · Aug 25, 2009, 04:37 AM

Originally Posted by morgaine300

Sorry this is so long, but there's just a lot of problems here.

They still aren't in order. "In order" doesn't mean listing all debits first and then all credits second. It means putting things together: assets together, liabilities together, etc. You've got accumulated depreciation separated from the asset it belongs with, and expenses mixed randomly in with assets, etc. That's what I'm talking about. Did you never learn to put these in order? It's just more difficult to check when they're all mixed up like that.

You also haven't changed anything at all. All you have done is present the same balances, which I have already checked, and already discovered what was wrong. I've already told you what was incorrect but you haven't changed a thing. So you're still out of balance, with the same errors. The only thing I can do is re-iterate what is wrong.

I don't know if your tutor just told you that you need to "include interest," which is a correct statement, or if your tutor told you to do exactly what you did, because it isn't correct. First, the dollar amount isn't correct. (See below.) And I didn't say there was no interest. I said it wasn't interest expense, but rather interest revenue. I even bolded that it wasn't expense to draw your attention to it. I can't help you if you don't pay attention to stuff like that. Notice in your paragraph you used the term "earned." Earned is revenue, not expense.

I'm not sure I understand what you're saying. The debit asset accounts (equipment, furniture and vehicle) are not changed or affected by adjusting entries. So those are the "original" amount. The credit side is the accumulated depreciation, and those do increase. But when I said "other side" I'm not meaning the plant asset debit side versus the accumulated depreciation credit side. I'm referring to the ENTRY having two sides: both a debit and credit. The original asset is not in the entry. But the entries still need to have a debit in them.

You will NEVER balance if your entries don't balance. Therefore, all of your entries need to balance. ALL of them. And whatever is in those entries must be reflected in the adjusted trial balance. See some comments below, because I do see where you've got some of the stuff in the entry, but that it's never been posted to the account and re-balanced for the sake of your adjusted trial balance. If you don't post them, you still won't balance.

I'm sorry, but this whole top section I have no idea what you're doing, but these are not proper entries. It almost looks like some of it was the unadjusted balances. But they aren't all that either. So they aren't unadjusted balances and they aren't proper entries, either one. So I'm not sure what they are.

I've deleted most of the top section of "entries" and just left this one example.

Why is cash in there? The 22,800 isn't related to cash in any way whatsoever. You've repeated cash several times throughout this stuff, when cash is not part of the entry. You've even repeated 22,800 several times. See, that's one where it almost looks like you're trying to put a beginning balance or something, except 22,800 was never in cash and has nothing to do with cash. And Jan 1 should not be in an entry.

I've seen like 4 times you've credited 800 to materials and have no clue why you keep repeating that.

You keep trying to "debit" things that aren't even accounts. (See below for example of that.)

Closing entries aren't done until after the adjusted trial balance. That is, closing entries will NOT reflect in your adjusted trial balance, so I don't know why any of that is included. Reversing entries aren't done until the beginning of the next period.

The term deposit being taken out at the beginning of June doesn't mean that interest would accrue on it BEFORE you ever had it. It would start accruing at the time you got it, continuing thru the end of the year. If you stuck money in the bank in June, would they give you interest from Jan thru May? (Oh, and June 1 isn't six months.)

How is something dated June 1 part of a year-end adjusting entry? "Interest for 12 months" isn't an account and you can't debit it. (You've done that several times, try to debit or credit something that isn't even an account.) And 540 is not the number to be used -- that was just part of a calculation, a means to an end. You can't debit a calculation. And you said yourself the interest was earned, so how can it be unearned?

Unearned revenue is a liability account. It doesn't close. Closing entries shouldn't even be here, but the point remains that it's a liability, which is a permanent acct and doesn't close.

Now this is a proper entry and it's correct. (Except that you called it prepaid insurance elsewhere. Be consistent.)

But you never got the credit in your adjusted trial balance. This is part of what I said the first time: that you had 5 entries that didn't have another side to them. I specifically mentioned the telephone one - so you should have immediately checked this entry to look for what happened here. This credit isn't in your adjusted trial balance. This is exactly the kind of thing that's putting you out of balance - if something isn't there, it cannot balance.

This is the correct entry. So what was all that other stuff you did further up with depreciation???? Also note again that you've never recorded this debit into your adjusted trial balance. When I pointed out that your depreciation didn't have a debit, why didn't you come look at this and get these debits into your adjusted trial balance?

What I'm calling the top section and bottom section is where it splits at "(a) Prepare all adjusting entries in the general journal. " What you have below there in the bottom section is the proper way to do entries. (They aren't all correct, but they are at least proper format for an entry and make sense.)

I don't know what all the stuff in the top section is. You've titled them "entries" (adjusting, closing or reversing), but none of that top section is proper entries. I would have been better not to see them, cause they're just confusing me, and they absolutely are not what you have reflected in your adjusted trial balance. So I have no clue what all that is about.

What it comes down to is that you have the same six errors you had the first time. You've got five entries that don't have both sides in the adjusted trial balance. And then there's the interest that is revenue and not expense.

If you don't understand one of them, ask. But don't just ignore them and do nothing. You won't fix anything that way.

Хммм, my tutor already explained everything to me. Anyway, thanks for your help, and sorry for making you nervous...