[Nicole90]

I am having trouble understanding adjusting entries and filling out the worksheet. Any help would be appreciated.:p

[morgaine300]

Long subject. Adjusting entries is like an entire chapter in a book -- not like I can explain the entire thing here. You have to ask specific questions of what you don't understand -- keeping in mind we don't just give you answers to your homework, but rather check it or help you understand it.

Except for the adjusting entries, the worksheet itself isn't any big deal. The first set of columns is the unadjusted trial balance. If you are just learning it, chances are it's already filled out or you just have to copy it from one in the problem. The next set of columns is those adjusting entries. The third set of columns (if it contains it) is the adjusted trial balance. This is taking the unadjusted trial balance, adding/subtracting what you did in the adjustments, and coming up with new balances. Or carrying over any account that didn't have an adjusting entry. The next two sets of columns are to separate the accounts between the income statement and balance sheet accounts, and is just copying, literally. Your accounts should be in order: assets, liabilities, equity, revenues & expenses. Just keep in mind that the income statement is revenues & expenses only, and the balance sheet is your equation: assets, liabilities & equity.

If you have specific questions about the worksheet, you're going to have to ask it.

[blessed38]

The equipment was purchased in 2009 and is being depreciated using the straight - line method over an eight-
year useful life with no salvage value.

equipment accumlated Depreciation-equip
Debit credit Debit Credit
75,000 10,000

I am not sure if I am doing the calculation correctly. 75000/96 or 10000/96

[pready]

The cost of equipment is $75,000 minus the salvage value, which is 0 divided by the useful life of 8 years will be your depreciation expense per year. To get the fractional year take the depreciation expense times the number of months of depreciation divided by 12.