2. KARDAN INSTITUTE OF HIGHER EDUCATION DescriptionDrCr Cash15,000 A/R10,000 A/P15,000 Prepaid Rent15,000 Unearned Salaries15,000 Machinery50,000 Sales15,000 Capital45,000 Adjustments are prepared at the end of year. 1.Revenue earned but not received 36,000 2. Accrued Rent Expenses 18000 3. Prepaid rent is for 15 months. Paid on jan1,2010. 4. 10,000 revenue is earned out of un-earned salaries revenue.. 5. Machinery useful life is 24 years and its residual vale is 2000.

3. KARDAN INSTITUTE OF HIGHER EDUCATION DESCRIPTIONDRCR CASH20,000 Prepaid Rent30,000 Rent expenses 3000 Prepaid Salaries 12,000 Inventory 7000 Machinery60,000 Account payable 28,000 Un-earned advertisement revenue 22,000 Sales 40,000 Capital 42,000 TOTAL1,32,000 Trial Balance of ABC & Co For The Period Ended Dec,2010

4. OTHER RELEVANT INFORMATION KARDAN INSTITUTE OF HIGHER EDUCATION 1)Prepaid rent is for 2-years and made on january1,2010. 2) Prepaid salaries is for one year, paid on 1 st July 2010. 3)Machinery useful life is 15-years. 4)Advertisement revenue is earned 15,000 for current year.

5. KARDAN INSTITUTE OF HIGHER EDUCATION Trial Balance For The Period……………

6. Accrual Accounting and the Financial Statements 5 Information For Adjustments (a)Prepaid rent expired, $1000. (b)Supplies on hand, $400 (balance before adjustment equals $700). (c)Depreciation on furniture, $275. (d)Accrued salary expense, $950. (e)Accrued service revenue, $250. (f)Amount of unearned service revenue that has been earned, $150. (g)Accrued income tax expense, $540. (a)Prepaid rent expired, $1000. (b)Supplies on hand, $400 (balance before adjustment equals $700). (c)Depreciation on furniture, $275. (d)Accrued salary expense, $950. (e)Accrued service revenue, $250. (f)Amount of unearned service revenue that has been earned, $150. (g)Accrued income tax expense, $540. 5

7. KARDAN INSTITUTE OF HIGHER EDUCATION DESCRIPTIONDRCR Cash50,000 A/R30,000 A/P20,000 Pre-paid rent18,000 Pre-paid Salaries12,000 Un-earned Advertisement revenue50,000 Building80,000 Office supplies40,000 Capital100,000 Advertisement Revenue60,000 TOTAL2,30,000 1- Accrued Rent Expenses 12,000. 2- Accrued Salaries Revenues 50,000. Trial Balance For the Period Ended 31 ST Dec.2010

8. Description DR ($) CR ($) Cash30,000 Inventory15,000 A/R10,000 Prepaid Insurance18,000 Prepaid Salaries9,000 Building74,000 Land100,000 Car10,000 Unearned Advertisement Revenues48,000 Unearned Rent Revenue60,000 A/P20,000 Capital138,000 TOTAL266,000 Trial Balance Of ABC & Co For the Period Ended 31.Dec 2010

9. ADJUSTMENT REQUIRED AT YEAR END 31,DEC.2010 KARDAN INSTITUTE OF HIGHER EDUCATION 1)Prepaid insurance is for one year paid on 1 st April 2010. 2)Prepaid salaries is for one year paid on 1 st January 2010. 3)Building useful life is 35 years and its residual value is $ 4000.Building is acquired in January 2010. 1)Car useful life is 10 years and is purchased in January 2010. 2)Unearned Advertisement revenue is received on 31 st March 2010 for 2 years. 3)Rent revenue of $30,000 is earned out of total unearned rent revenue. 4)Accrued rent Revenue was $15,000 & Accrued Salaries expenses $ 10,000 for the period.

10. DESCRIPTIONDRCR Cash20,000 A/R15,000 Office Supplies30,000 Furniture50,000 Prepaid Rent20,000 Rent Expenses5000 Unearned Salaries Revenue25,000 Salaries Revenue10,000 Capital105,000 TOTAL140,000 TRIAL BALANCE FOR YEAR ENDED DEC 31,2010

11. Prepared adjusted Trial Balance at year ended 31 st Dec.2010. 1) Closing balance of Office supplies is $ 7000. 2) Useful life of furniture is 24 years and its residual value is $ 2000. 3) Prepaid rent is for one year paid on 1 st July 2010. 4) Earned $ 10,000 Salaries Revenue out of Un- earned revenue. 5) Accrued Advertising Expenses are $ 5000. 6) Accrued salaries revenue is $ 7000.