Prepare a trial balance at March 31 on a worksheet. Enter the following adjustme
ID: 2387196 • Letter: P
Question
Prepare a trial balance at March 31 on a worksheet. Enter the following adjustments on the worksheet and complete the worksheet. (If answer is zero, please enter 0. Do not leave any fields blank.)Earned but unbilled revenue at March 31 was $706.
Depreciation on equipment for the month was $252.
One-twelfth of the insurance expired.
An inventory count shows $378 of cleaning supplies on hand at March 31.
Accrued but unpaid employee salaries were $488.
EDDY'S CARPET CLEANERS
Worksheet
For the Month Ended March 31, 2010
Trial Balance
Adjustments
Adjusted Trial Balance
Income Statement
Balance Sheet
Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash
Accounts Receivable
Cleaning Supplies
Prepaid Insurance
Equipment
Accounts Payable
L. Eddy, Capital
L. Eddy, Drawings
Service Revenue
Gas & Oil Expense
Salaries Expense
Totals
Depreciation Expense
Accumulated Depreciation
Insurance Expense
Cleaning Supplies Expense
Salaries Payable
Totals
Net Income
Totals
Explanation / Answer
One-twelfth of the insurance expired - As no amount is given ,so cannot give the exact amount but will explain you the treatment. On-twelfth of the prepaid insurance will be transfer to insurance expenses and the same amount will be reduced from prepaid insurance.
For cleaning supplies expense - we will reduce cleaning supplies expenses by 378 and will increase the cleaning supplies invenotry by 378.
Debit Credit Cash 706 0 Accounts Receivable 0 0 Cleaning Supplies 378 0 Prepaid Insurance 0 0 Equipment 0 0 Accounts Payable 0 0 L. Eddy, Capital 0 0 L. Eddy, Drawings 0 0 Service Revenue 0 706 Gas & Oil Expense 0 0 Salaries Expense 488 0 Depreciation Expense 252 0 Accumulated Depreciation 0 252 Insurance Expense 0 0 Cleaning Supplies Expense -378 0 Salaries Payable 0 488One-twelfth of the insurance expired - As no amount is given ,so cannot give the exact amount but will explain you the treatment. On-twelfth of the prepaid insurance will be transfer to insurance expenses and the same amount will be reduced from prepaid insurance.
For cleaning supplies expense - we will reduce cleaning supplies expenses by 378 and will increase the cleaning supplies invenotry by 378.