Prepare an end of the period worksheet: 1) Prepare an unadjusted trial balance o
ID: 2548799 • Letter: P
Question
Prepare an end of the period worksheet:
1) Prepare an unadjusted trial balance on the worksheet
2) Prepare the adjusting entries on the worksheet
3) Prepare the adjusted trial balance
4) Prepare the income statement and the balance sheet
January, 20XX Transactions: Jan.1 The following assets were received from Oneida Reza: Cash $65,000; Accounts Receivables 14,700; Equipment, $24,000; Supplies $5,000. There were no liabilities. 1Paid three months' rent on a lease rental contract, $9,000. 2 Paid 12-month premiums on property and casualty insurance policies. $12,000. 4Received cash from a corporate client as an advance payment (unearned revenue) for fitness design, S9,400 5 Purchased fitness equipment on account from Doubletree Fitness Equipment, $8,000. 6 Received check from design clients on account, $11,700. 10 Paid cash for a newspaper advertisement, S350 11 Paid Doubletree Fitness Equipment for part of the debt incurred on Jan. 5, S6.400 12 Recorded design services provided on account for the period Jan. 1 -12, $21,900. 14 Paid fitness assistants for two weeks' salary. $1.650.Explanation / Answer
1)Unadjusted trial balance-
Account
Debit $
Credit $
Cash and bank
76635(65000-9000-12000+9400-6400+11700-350-1650+7600-825+4450+26500-1650-540-760+5160-20000)
Accounts receivable
17790(14700-11700+21900+16800-26500+2590)
Equipment
32000($24000+$8000)
Supplies
5825(5000+825)
Rent expense
9000
Insurance premiums
12000
Advance received(unearned revenue)
9400
Doubletree fitness
1600
Advertisement expenses
350
Design service a/c
41290(21900+16800+2590)
Salary paid
3300(1650+1650)
Memebership fee
17210(7600+4450+5160)
Telephone bill
540
Electricity bill
760
Loans & Advances(oneida's drawings)
20000
Capital a/c
108700
Total
178200
178200
2)Adjusting entries
Entry
Debit
Credit
Prepaid Insurance a/c Dr
To Insurance a/c
(being adjustment made for unexpired premium)
11000({12000/12}*11)
11000
Closing Inventory a/c Dr
Cost of goods consumed a/c Dr
To opening inventory
(being the supplies consumed during the period of january)
1225
4600
5825
Depreciation a/c Dr
To Furniture &equipment
(being the depreciation on the equipment for the month of January)
1022*
1022
Salary a/c Dr
To salary payable
(being the salary accrued as on 31st Jan)
275
275
Prepaid rent/c Dr
To Rent a/c
(being the unexpired rent)
6000 ({9000/3}*2)
6000
Unearned Revenue a/c Dr
To revenue/design service a/c
(being the revenue recognised for the period)
7050 (9400-2350)
7050
*Depreciation calculation = 24000/30 months= 800 per month + {8000/30}*25/30=222 for 25 days = 800+222=1022
3)Adjusted Trial balance
Account
Debit $
Credit $
Cash and bank
76635(65000-9000-12000+9400-6400+11700-350-1650+7600-825+4450+26500-1650-540-760+5160-20000)
Accounts receivable
17790(14700-11700+21900+16800-26500+2590)
Equipment
30978($24000+$8000-1022)
Supplies
1225
Rent expense
3000
Insurance premiums
1000
Advance received(unearned revenue)
2350
Doubletree fitness
1600
Advertisement expenses
350
Design service a/c
48340(21900+16800+2590+7050
Salary
3575
Memebership fee
17210(7600+4450+5160)
Telephone bill
540
Electricity bill
760
Loans & Advances(oneida's drawings)
20000
Capital a/c
108700
Prepaid Insurance
11000
Cost of goods consumed
4600
depreciation
1022
Salary Payable
275
Prepaid Rent
6000
Total
178475
178475
4)Income Statement and Balance sheet
Particulars
$
$
Incomes
Membership fee
17210
Design fee
48340
65550
Expenses
Cost of goods consumed
(4600)
Depreciation
(1022)
Salary
(3575)
Rent
(3000)
Insurance premium paid
(1000)
Electricity bill
(760)
Telephone bill
(540)
Advertisement expenses
(350)
Total expenses
(14847)
Profit/(loss)
50703
Balance sheet as on January 31st
Liabilities
$
Share capital
108700
Profits
50703
Salary payable
275
Unearned revenue
2350
Creditors-Double tree fitness
1600
163628
Assets
Equipment less depreciation
30978
Supplies
1225
cash
76635
Prepaid rent
6000
Prepaid Insurance
11000
Accounts receivable
17790
Loans and Advances(Drawings)
20000
163628
Account
Debit $
Credit $
Cash and bank
76635(65000-9000-12000+9400-6400+11700-350-1650+7600-825+4450+26500-1650-540-760+5160-20000)
Accounts receivable
17790(14700-11700+21900+16800-26500+2590)
Equipment
32000($24000+$8000)
Supplies
5825(5000+825)
Rent expense
9000
Insurance premiums
12000
Advance received(unearned revenue)
9400
Doubletree fitness
1600
Advertisement expenses
350
Design service a/c
41290(21900+16800+2590)
Salary paid
3300(1650+1650)
Memebership fee
17210(7600+4450+5160)
Telephone bill
540
Electricity bill
760
Loans & Advances(oneida's drawings)
20000
Capital a/c
108700
Total
178200
178200