Download presentation
Presentation is loading. Please wait.
Published bySamson Walker Modified over 9 years ago
1
Demonstration Problems Chapter 3 The Adjusting Process 3-1 © 2016 Pearson Education, Inc.
2
3-2 Popular Advertising Agency completed the following selected transactions during July 2016: Demonstration of E3-19 Jul. 1Prepaid rent for three months, $6,000 4Received and paid electricity bill, $1,000 10Received cash for service rendered to customers, $5,000 15Paid cash for computer equipment, $20,000 20Service rendered on account, $10,000 31Made the adjusting entry for rent (from July 1). 31Accrued salary expense, $3,000 31Recorded depreciation for July on computer equipment, $170 © 2016 Pearson Education, Inc.
3
3-3 Requirements 1.Show whether each transaction would be handled as a revenue or an expense using both the cash basis and accrual basis accounting systems. 2.Calculate the amount of net income or net loss for Popular Advertising Agency under the accrual basis and cash basis accounting systems for July. 3.Considering your results from Requirement 2, which method gives the best picture of the true earnings of Popular Advertising Agency? Why? Demonstration of E3-19 © 2016 Pearson Education, Inc.
4
3-4 Amount of Revenue (Expense) for July DateCash Basis Amount of Revenue (Expense) Accrual Basis Amount of Revenue (Expense) Jul. 1($6,000) ($0) Demonstration of E3-19-Req. 1 © 2016 Pearson Education, Inc.
5
3-5 Amount of Revenue (Expense) for July DateCash Basis Amount of Revenue (Expense) Accrual Basis Amount of Revenue (Expense) Jul. 1($6,000) ($0) Jul. 4 (1,000) Demonstration of E3-19-Req. 1 © 2016 Pearson Education, Inc.
6
3-6 Amount of Revenue (Expense) for July DateCash Basis Amount of Revenue (Expense) Accrual Basis Amount of Revenue (Expense) Jul. 1($6,000) ($0) Jul. 4 (1,000) Jul. 10 5,000 Demonstration of E3-19-Req. 1 © 2016 Pearson Education, Inc.
7
3-7 Amount of Revenue (Expense) for July DateCash Basis Amount of Revenue (Expense) Accrual Basis Amount of Revenue (Expense) Jul. 1($6,000) ($0) Jul. 4 (1,000) Jul. 10 5,000 Jul. 15(20,000) 0 Demonstration of E3-19-Req. 1 © 2016 Pearson Education, Inc.
8
3-8 Amount of Revenue (Expense) for July DateCash Basis Amount of Revenue (Expense) Accrual Basis Amount of Revenue (Expense) Jul. 1($6,000) ($0) Jul. 4 (1,000) Jul. 10 5,000 Jul. 15(20,000) 0 Jul. 20 010,000 Demonstration of E3-19-Req. 1 © 2016 Pearson Education, Inc.
9
3-9 Amount of Revenue (Expense) for July DateCash Basis Amount of Revenue (Expense) Accrual Basis Amount of Revenue (Expense) Jul. 1($6,000) ($0) Jul. 4 (1,000) Jul. 10 5,000 Jul. 15(20,000) 0 Jul. 20 010,000 Jul. 31 0 (2,000)* *Rent prepaid on July 1 for 3 months$6,000 Months÷3 Rent expense for July$2,000 Demonstration of E3-19-Req. 1 © 2016 Pearson Education, Inc.
10
3-10 Amount of Revenue (Expense) for July DateCash Basis Amount of Revenue (Expense) Accrual Basis Amount of Revenue (Expense) Jul. 1($6,000) ($0) Jul. 4 (1,000) Jul. 10 5,000 Jul. 15(20,000) 0 Jul. 20 010,000 Jul. 31 0 (2,000)* Jul. 31 0 (3,000) *Rent prepaid on July 1 for 3 months$6,000 Months÷3 Rent expense for July$2,000 Demonstration of E3-19-Req. 1 © 2016 Pearson Education, Inc.
11
3-11 Amount of Revenue (Expense) for July DateCash Basis Amount of Revenue (Expense) Accrual Basis Amount of Revenue (Expense) Jul. 1($6,000) ($0) Jul. 4 (1,000) Jul. 10 5,000 Jul. 15(20,000) 0 Jul. 20 010,000 Jul. 31 0 (2,000)* Jul. 31 0 (3,000) Jul. 31 0 (170) *Rent prepaid on July 1 for 3 months$6,000 Months÷3 Rent expense for July$2,000 Demonstration of E3-19-Req. 1 © 2016 Pearson Education, Inc.
12
3-12 Net income (loss) under cash basis: Demonstration of E3-19-Req. 2 © 2016 Pearson Education, Inc.
13
3-13 Net income (loss) under cash basis: Calculation: Net Income (Loss)═Total Revenues – Total Expenses Demonstration of E3-19-Req. 2 © 2016 Pearson Education, Inc.
14
3-14 Net income (loss) under cash basis: Calculation: Net Income (Loss)═Total Revenues – Total Expenses ═$5,000 − ($6,000 + $1,000 + $20,000) Demonstration of E3-19-Req. 2 © 2016 Pearson Education, Inc.
15
3-15 Net income (loss) under cash basis: Calculation: Net Income (Loss)═Total Revenues – Total Expenses ═$5,000 − ($6,000 + $1,000 + $20,000) ═$5,000 − $27,000 Demonstration of E3-19-Req. 2 © 2016 Pearson Education, Inc.
16
3-16 Net income (loss) under cash basis is ($22,000) Calculation: Net Income (Loss)═Total Revenues – Total Expenses ═$5,000 − ($6,000 + $1,000 + $20,000) ═$5,000 − $27,000 ═($22,000) Demonstration of E3-19-Req. 2 © 2016 Pearson Education, Inc.
17
3-17 Net income (loss) under cash basis is ($22,000) Calculation: Net Income (Loss)═Total Revenues – Total Expenses ═$5,000 − ($6,000 + $1,000 + $20,000) ═$5,000 − $27,000 ═($22,000) Net income (loss) under accrual basis: Demonstration of E3-19-Req. 2 © 2016 Pearson Education, Inc.
18
3-18 Net income (loss) under cash basis is ($22,000) Calculation: Net Income (Loss)═Total Revenues – Total Expenses ═$5,000 − ($6,000 + $1,000 + $20,000) ═$5,000 − $27,000 ═($22,000) Net income (loss) under accrual basis: Calculation: Net Income (Loss)═Total Revenues – Total Expenses Demonstration of E3-19-Req. 2 © 2016 Pearson Education, Inc.
19
3-19 Net income (loss) under cash basis is ($22,000) Calculation: Net Income (Loss)═Total Revenues – Total Expenses ═$5,000 − ($6,000 + $1,000 + $20,000) ═$5,000 − $27,000 ═($22,000) Net income (loss) under accrual basis: Calculation: Net Income (Loss)═Total Revenues – Total Expenses ═$5,000 + $10,000 − ($1,000 + $2,000 + $3,000 + $170) Demonstration of E3-19-Req. 2 © 2016 Pearson Education, Inc.
20
3-20 Net income (loss) under cash basis is ($22,000) Calculation: Net Income (Loss)═Total Revenues – Total Expenses ═$5,000 − ($6,000 + $1,000 + $20,000) ═$5,000 − $27,000 ═($22,000) Net income (loss) under accrual basis: Calculation: Net Income (Loss)═Total Revenues – Total Expenses ═$5,000 + $10,000 − ($1,000 + $2,000 + $3,000 + $170) ═$15,000 − $6,170 Demonstration of E3-19-Req. 2 © 2016 Pearson Education, Inc.
21
3-21 Net income (loss) under cash basis is ($22,000) Calculation: Net Income (Loss)═Total Revenues – Total Expenses ═$5,000 − ($6,000 + $1,000 + $20,000) ═$5,000 − $27,000 ═($22,000) Net income (loss) under accrual basis is $8,830 Calculation: Net Income (Loss)═Total Revenues – Total Expenses ═$5,000 + $10,000 − ($1,000 + $2,000 + $3,000 + $170) ═$15,000 − $6,170 ═$8,830 Demonstration of E3-19-Req. 2 © 2016 Pearson Education, Inc.
22
Accrual basis accounting gives the best picture of the true earnings of Popular Advertising, because revenues are recorded when earned and expenses are recorded when incurred, as dictated by the revenue recognition principle and the matching principle 3-22 Net income (loss) under cash basis is ($22,000) Calculation: Net Income (Loss)═Total Revenues – Total Expenses ═$5,000 − ($6,000 + $1,000 + $20,000) ═$5,000 − $27,000 ═($22,000) Net income (loss) under accrual basis is $8,830 Calculation: Net Income (Loss)═Total Revenues – Total Expenses ═$5,000 + $10,000 − ($1,000 + $2,000 + $3,000 + $170) ═$15,000 − $6,170 ═$8,830 Demonstration of E3-19-Req. 3 © 2016 Pearson Education, Inc.
23
3-23 BRIGHT SOLUTIONS COMPANY Unadjusted Trial Balance December 31, 2016 Account TitleBalance Debitcredit Cash $1,500 Office Supplies4,000 Prepaid Insurance1,200 Equipment35,000 Accumulated Depreciation—Equipment $14,000 Accounts Payable 3,700 Salaries Payable Unearned Revenue 2,000 Common Stock 10,000 Dividends5,000 Service Revenue 27,000 Salaries Expense10,000 Supplies Expense Depreciation Expense—Equipment Insurance Expense Total $56,700 Demonstration of E3-25 & E3-26 The unadjusted trial balance for Bright Solutions Company, the tutoring service, is as follows: © 2016 Pearson Education, Inc.
24
3-24 During the 12 months ended December 31, 2016, Bright Solutions: a.used office supplies of $2,500. b.used prepaid insurance of $600. c.depreciated equipment, $700. d.accrued salaries expense of $500 that hasn’t been paid yet. e.earned $1,000 of unearned revenue. Requirements E3-251.Open a T-account for each account using the unadjusted balances. 2.Journalize the adjusting entries using the letter and December 31 date in the date column. 3.Post the adjustments to the T-accounts, entering each adjustment by letter. Show each account’s adjusted balance. E3-26Prepare an adjusted trial balance. Demonstration of E3-25 & E3-26 © 2016 Pearson Education, Inc.
25
3-25 Cash Bal.1,500 Office Supplies Bal.4,000 Prepaid Insurance Bal.1,200 Equipment Bal.35,000 Demonstration of E3-25-Req. 1 © 2016 Pearson Education, Inc.
26
3-26 Accumulated Depreciation -Equipment 14,000Bal. Accounts Payable 3,700Bal. Salaries PayableUnearned Revenue 2,000Bal. Demonstration of E3-25-Req. 1 © 2016 Pearson Education, Inc.
27
3-27 Common Stock 10,000Bal. Dividends Bal.5,000 Service Revenue 27,000Bal. Salaries Expense Bal.10,000 Demonstration of E3-25-Req. 1 © 2016 Pearson Education, Inc.
28
3-28 Supplies Expense Depreciation Expense—Equipment Insurance Expense Demonstration of E3-25-Req. 1 © 2016 Pearson Education, Inc.
29
3-29 a. Used office supplies of $2,500. DateAccounts and ExplanationDebitCredit a. Dec. 31 Supplies Expense 2,500 Office Supplies 2,500 To record office supplies used. Office Supplies Bal.4,0002,500a. Supplies Expense a.2,500 Demonstration of E3-25-Req. 2 & 3 © 2016 Pearson Education, Inc.
30
3-30 b. Used prepaid insurance of $600 DateAccounts and ExplanationDebitCredit b. Dec. 31 Insurance Expense 600 Prepaid Insurance 600 To record insurance expense. Insurance Expense b.600 Prepaid Insurance Bal.1,200600b. Demonstration of E3-25-Req. 2 & 3 © 2016 Pearson Education, Inc.
31
3-31 c. Depreciated equipment, $700 DateAccounts and ExplanationDebitCredit c. Dec. 31 Depreciation Expense—Equipment 700 Accumulated Depreciation—Equipment 700 To record depreciation on equipment. Depreciation Expense—Equipment c.700 Accumulated Depreciation -Equipment 14,000Bal. 700c. Demonstration of E3-25-Req. 2 & 3 © 2016 Pearson Education, Inc.
32
3-32 d. Accrued salaries expense of $500 that hasn’t been paid yet. DateAccounts and ExplanationDebitCredit d. Dec. 31 Salaries Expense 500 Salaries Payable 500 To accrue salaries expense. Salaries Expense Bal.10,000 d.500 Salaries Payable 500d. Demonstration of E3-25-Req. 2 & 3 © 2016 Pearson Education, Inc.
33
3-33 e. Earned $1,000 of unearned revenue. DateAccounts and ExplanationDebitCredit e. Dec. 31 Unearned Revenue 1,000 Service Revenue 1,000 To record service revenue earned that was collected in advance. Unearned Revenue e.1,0002,000Bal. Service Revenue 27,000Bal. 1,000e. Demonstration of E3-25-Req. 2 & 3 © 2016 Pearson Education, Inc.
34
3-34 Cash Bal.1,500 Bal.1,500 Office Supplies Bal.4,0002,500a. Bal.1,500 Prepaid Insurance Bal.1,200600b. Bal.600 Equipment Bal.35,000 Bal.35,000 Demonstration of E3-25-Req. 3 © 2016 Pearson Education, Inc.
35
3-35 Accumulated Depreciation -Equipment 14,000Bal. 700c. 14,700Bal. Accounts Payable 3,700Bal. 3,700Bal. Salaries Payable 500d. 500Bal. Unearned Revenue e.1,0002,000Bal. 1,000Bal. Demonstration of E3-25-Req. 3 © 2016 Pearson Education, Inc.
36
3-36 Common Stock 10,000Bal. 10,000Bal. Dividends Bal.5,000 Bal.5,000 Service Revenue 27,000Bal. 1,000e. 28,000Bal. Salaries Expense Bal.10,000 d.500 Bal.10,500 Demonstration of E3-25-Req. 3 © 2016 Pearson Education, Inc.
37
3-37 Supplies Expense a.2,500 Bal.2,500 Depreciation Expense—Equipment c.700 Bal.700 Insurance Expense b.600 Bal.600 Demonstration of E3-25-Req. 3 © 2016 Pearson Education, Inc.
38
3-38 BRIGHT SOLUTIONS COMPANY Adjusted Trial Balance December 31, 2016 Account TitleBalance DebitCredit Cash $1,500 Demonstration of E3-26 © 2016 Pearson Education, Inc.
39
3-39 BRIGHT SOLUTIONS COMPANY Adjusted Trial Balance December 31, 2016 Account TitleBalance DebitCredit Cash $1,500 Office Supplies1,500 Demonstration of E3-26 © 2016 Pearson Education, Inc.
40
3-40 BRIGHT SOLUTIONS COMPANY Adjusted Trial Balance December 31, 2016 Account TitleBalance DebitCredit Cash $1,500 Office Supplies1,500 Prepaid Insurance600 Demonstration of E3-26 © 2016 Pearson Education, Inc.
41
3-41 BRIGHT SOLUTIONS COMPANY Adjusted Trial Balance December 31, 2016 Account TitleBalance DebitCredit Cash $1,500 Office Supplies1,500 Prepaid Insurance600 Equipment35,000 Demonstration of E3-26 © 2016 Pearson Education, Inc.
42
3-42 BRIGHT SOLUTIONS COMPANY Adjusted Trial Balance December 31, 2016 Account TitleBalance DebitCredit Cash $1,500 Office Supplies1,500 Prepaid Insurance600 Equipment35,000 Accumulated Depreciation—Equipment $14,700 Demonstration of E3-26 © 2016 Pearson Education, Inc.
43
3-43 BRIGHT SOLUTIONS COMPANY Adjusted Trial Balance December 31, 2016 Account TitleBalance DebitCredit Cash $1,500 Office Supplies1,500 Prepaid Insurance600 Equipment35,000 Accumulated Depreciation—Equipment $14,700 Accounts Payable 3,700 Demonstration of E3-26 © 2016 Pearson Education, Inc.
44
3-44 BRIGHT SOLUTIONS COMPANY Adjusted Trial Balance December 31, 2016 Account TitleBalance DebitCredit Cash $1,500 Office Supplies1,500 Prepaid Insurance600 Equipment35,000 Accumulated Depreciation—Equipment $14,700 Accounts Payable 3,700 Salaries Payable 500 Demonstration of E3-26 © 2016 Pearson Education, Inc.
45
3-45 BRIGHT SOLUTIONS COMPANY Adjusted Trial Balance December 31, 2016 Account TitleBalance DebitCredit Cash $1,500 Office Supplies1,500 Prepaid Insurance600 Equipment35,000 Accumulated Depreciation—Equipment $14,700 Accounts Payable 3,700 Salaries Payable 500 Unearned Revenue 1,000 Demonstration of E3-26 © 2016 Pearson Education, Inc.
46
3-46 BRIGHT SOLUTIONS COMPANY Adjusted Trial Balance December 31, 2016 Account TitleBalance DebitCredit Cash $1,500 Office Supplies1,500 Prepaid Insurance600 Equipment35,000 Accumulated Depreciation—Equipment $14,700 Accounts Payable 3,700 Salaries Payable 500 Unearned Revenue 1,000 Common Stock 10,000 Demonstration of E3-26 © 2016 Pearson Education, Inc.
47
3-47 BRIGHT SOLUTIONS COMPANY Adjusted Trial Balance December 31, 2016 Account TitleBalance DebitCredit Cash $1,500 Office Supplies1,500 Prepaid Insurance600 Equipment35,000 Accumulated Depreciation—Equipment $14,700 Accounts Payable 3,700 Salaries Payable 500 Unearned Revenue 1,000 Common Stock 10,000 Dividends5,000 Demonstration of E3-26 © 2016 Pearson Education, Inc.
48
3-48 BRIGHT SOLUTIONS COMPANY Adjusted Trial Balance December 31, 2016 Account TitleBalance DebitCredit Cash $1,500 Office Supplies1,500 Prepaid Insurance600 Equipment35,000 Accumulated Depreciation—Equipment $14,700 Accounts Payable 3,700 Salaries Payable 500 Unearned Revenue 1,000 Common Stock 10,000 Dividends5,000 Service Revenue 28,000 Demonstration of E3-26 © 2016 Pearson Education, Inc.
49
3-49 BRIGHT SOLUTIONS COMPANY Adjusted Trial Balance December 31, 2016 Account TitleBalance DebitCredit Cash $1,500 Office Supplies1,500 Prepaid Insurance600 Equipment35,000 Accumulated Depreciation—Equipment $14,700 Accounts Payable 3,700 Salaries Payable 500 Unearned Revenue 1,000 Common Stock 10,000 Dividends5,000 Service Revenue 28,000 Salaries Expense10,500 Demonstration of E3-26 © 2016 Pearson Education, Inc.
50
3-50 BRIGHT SOLUTIONS COMPANY Adjusted Trial Balance December 31, 2016 Account TitleBalance DebitCredit Cash $1,500 Office Supplies1,500 Prepaid Insurance600 Equipment35,000 Accumulated Depreciation—Equipment $14,700 Accounts Payable 3,700 Salaries Payable 500 Unearned Revenue 1,000 Common Stock 10,000 Dividends5,000 Service Revenue 28,000 Salaries Expense10,500 Supplies Expense2,500 Demonstration of E3-26 © 2016 Pearson Education, Inc.
51
3-51 BRIGHT SOLUTIONS COMPANY Adjusted Trial Balance December 31, 2016 Account TitleBalance DebitCredit Cash $1,500 Office Supplies1,500 Prepaid Insurance600 Equipment35,000 Accumulated Depreciation—Equipment $14,700 Accounts Payable 3,700 Salaries Payable 500 Unearned Revenue 1,000 Common Stock 10,000 Dividends5,000 Service Revenue 28,000 Salaries Expense10,500 Supplies Expense2,500 Depreciation Expense—Equipment700 Demonstration of E3-26 © 2016 Pearson Education, Inc.
52
3-52 BRIGHT SOLUTIONS COMPANY Adjusted Trial Balance December 31, 2016 Account TitleBalance DebitCredit Cash $1,500 Office Supplies1,500 Prepaid Insurance600 Equipment35,000 Accumulated Depreciation—Equipment $14,700 Accounts Payable 3,700 Salaries Payable 500 Unearned Revenue 1,000 Common Stock 10,000 Dividends5,000 Service Revenue 28,000 Salaries Expense10,500 Supplies Expense2,500 Depreciation Expense—Equipment700 Insurance Expense600 Demonstration of E3-26 © 2016 Pearson Education, Inc.
53
3-53 BRIGHT SOLUTIONS COMPANY Adjusted Trial Balance December 31, 2016 Account TitleBalance DebitCredit Cash $1,500 Office Supplies1,500 Prepaid Insurance600 Equipment35,000 Accumulated Depreciation—Equipment $14,700 Accounts Payable 3,700 Salaries Payable 500 Unearned Revenue 1,000 Common Stock 10,000 Dividends5,000 Service Revenue 28,000 Salaries Expense10,500 Supplies Expense2,500 Depreciation Expense—Equipment700 Insurance Expense600 Total $57,900 Demonstration of E3-26 © 2016 Pearson Education, Inc.
54
3-54 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments DebitCreditDebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 Office Supplies500 (b)$300 Prepaid Insurance3,000 (a)2,000 Equipment180,000 Accumulated Depreciation—Equipment (c)1,800 Computers110,000 Accumulated Depreciation—Computers (d)2,200 Accounts Payable $6,000 Utilities Payable 1,500 Salaries Payable (f)9,000 Interest Payable (g)200 Unearned Revenue 5,000(e)3,000 Notes Payable 50,000 Common Stock 250,000 Dividends35,000 Service Revenue 120,000 (e, h)7,000 Rent Expense20,000 (a)2,000 Salaries Expense25,000 (f)9,000 Supplies Expense (b)300 Utilities Expense9,000 Depreciation Expense—Equipment (c)1,800 Depreciation Expense—Computers (d)2,200 Interest Expense (g)200 Total$432,500 $22,500 Demonstration of E3-30 The worksheet of Clear Telephonic Services follows but is incomplete.
55
3-55 Requirements Calculate and enter the adjusted account balances in the Adjusted Trial Balance columns. Demonstration of E3-30 © 2016 Pearson Education, Inc.
56
3-56 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Demonstration of E3-30 © 2016 Pearson Education, Inc.
57
3-57 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Demonstration of E3-30 © 2016 Pearson Education, Inc.
58
3-58 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Demonstration of E3-30 © 2016 Pearson Education, Inc.
59
3-59 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Prepaid Insurance3,000 (a)2,000 1,000 Demonstration of E3-30 © 2016 Pearson Education, Inc.
60
3-60 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Prepaid Insurance3,000 (a)2,000 1,000 Equipment180,000 Demonstration of E3-30 © 2016 Pearson Education, Inc.
61
3-61 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Prepaid Insurance3,000 (a)2,000 1,000 Equipment180,000 Accumulated Depreciation—Equipment (c)1,800 $1,800 Demonstration of E3-30 © 2016 Pearson Education, Inc.
62
3-62 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Prepaid Insurance3,000 (a)2,000 1,000 Equipment180,000 Accumulated Depreciation—Equipment (c)1,800 $1,800 Computers110,000 Demonstration of E3-30 © 2016 Pearson Education, Inc.
63
3-63 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Prepaid Insurance3,000 (a)2,000 1,000 Equipment180,000 Accumulated Depreciation—Equipment (c)1,800 $1,800 Computers110,000 Accumulated Depreciation—Computers (d)2,200 Demonstration of E3-30 © 2016 Pearson Education, Inc.
64
3-64 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Prepaid Insurance3,000 (a)2,000 1,000 Equipment180,000 Accumulated Depreciation—Equipment (c)1,800 $1,800 Computers110,000 Accumulated Depreciation—Computers (d)2,200 Accounts Payable $6,000 6,000 Demonstration of E3-30 © 2016 Pearson Education, Inc.
65
3-65 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Prepaid Insurance3,000 (a)2,000 1,000 Equipment180,000 Accumulated Depreciation—Equipment (c)1,800 $1,800 Computers110,000 Accumulated Depreciation—Computers (d)2,200 Accounts Payable $6,000 6,000 Utilities Payable 1,500 Demonstration of E3-30 © 2016 Pearson Education, Inc.
66
3-66 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Prepaid Insurance3,000 (a)2,000 1,000 Equipment180,000 Accumulated Depreciation—Equipment (c)1,800 $1,800 Computers110,000 Accumulated Depreciation—Computers (d)2,200 Accounts Payable $6,000 6,000 Utilities Payable 1,500 Salaries Payable (f)9,000 Demonstration of E3-30 © 2016 Pearson Education, Inc.
67
3-67 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Prepaid Insurance3,000 (a)2,000 1,000 Equipment180,000 Accumulated Depreciation—Equipment (c)1,800 $1,800 Computers110,000 Accumulated Depreciation—Computers (d)2,200 Accounts Payable $6,000 6,000 Utilities Payable 1,500 Salaries Payable (f)9,000 Interest Payable (g)200 Demonstration of E3-30 © 2016 Pearson Education, Inc.
68
3-68 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Prepaid Insurance3,000 (a)2,000 1,000 Equipment180,000 Accumulated Depreciation—Equipment (c)1,800 $1,800 Computers110,000 Accumulated Depreciation—Computers (d)2,200 Accounts Payable $6,000 6,000 Utilities Payable 1,500 Salaries Payable (f)9,000 Interest Payable (g)200 Unearned Revenue 5,000(e)3,000 2,000 Demonstration of E3-30 © 2016 Pearson Education, Inc.
69
3-69 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Prepaid Insurance3,000 (a)2,000 1,000 Equipment180,000 Accumulated Depreciation—Equipment (c)1,800 $1,800 Computers110,000 Accumulated Depreciation—Computers (d)2,200 Accounts Payable $6,000 6,000 Utilities Payable 1,500 Salaries Payable (f)9,000 Interest Payable (g)200 Unearned Revenue 5,000(e)3,000 2,000 Notes Payable 50,000 Demonstration of E3-30 © 2016 Pearson Education, Inc.
70
3-70 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Prepaid Insurance3,000 (a)2,000 1,000 Equipment180,000 Accumulated Depreciation—Equipment (c)1,800 $1,800 Computers110,000 Accumulated Depreciation—Computers (d)2,200 Accounts Payable $6,000 6,000 Utilities Payable 1,500 Salaries Payable (f)9,000 Interest Payable (g)200 Unearned Revenue 5,000(e)3,000 2,000 Notes Payable 50,000 Common Stock 250,000 Demonstration of E3-30 © 2016 Pearson Education, Inc.
71
3-71 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Prepaid Insurance3,000 (a)2,000 1,000 Equipment180,000 Accumulated Depreciation—Equipment (c)1,800 $1,800 Computers110,000 Accumulated Depreciation—Computers (d)2,200 Accounts Payable $6,000 6,000 Utilities Payable 1,500 Salaries Payable (f)9,000 Interest Payable (g)200 Unearned Revenue 5,000(e)3,000 2,000 Notes Payable 50,000 Common Stock 250,000 Dividends35,000 Demonstration of E3-30 © 2016 Pearson Education, Inc.
72
3-72 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Prepaid Insurance3,000 (a)2,000 1,000 Equipment180,000 Accumulated Depreciation—Equipment (c)1,800 $1,800 Computers110,000 Accumulated Depreciation—Computers (d)2,200 Accounts Payable $6,000 6,000 Utilities Payable 1,500 Salaries Payable (f)9,000 Interest Payable (g)200 Unearned Revenue 5,000(e)3,000 2,000 Notes Payable 50,000 Common Stock 250,000 Dividends35,000 Service Revenue 120,000 (e, h)7,000 127,000 Demonstration of E3-30 © 2016 Pearson Education, Inc.
73
3-73 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Prepaid Insurance3,000 (a)2,000 1,000 Equipment180,000 Accumulated Depreciation—Equipment (c)1,800 $1,800 Computers110,000 Accumulated Depreciation—Computers (d)2,200 Accounts Payable $6,000 6,000 Utilities Payable 1,500 Salaries Payable (f)9,000 Interest Payable (g)200 Unearned Revenue 5,000(e)3,000 2,000 Notes Payable 50,000 Common Stock 250,000 Dividends35,000 Service Revenue 120,000 (e, h)7,000 127,000 Rent Expense20,000 (a)2,000 22,000 Demonstration of E3-30 © 2016 Pearson Education, Inc.
74
3-74 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Prepaid Insurance3,000 (a)2,000 1,000 Equipment180,000 Accumulated Depreciation—Equipment (c)1,800 $1,800 Computers110,000 Accumulated Depreciation—Computers (d)2,200 Accounts Payable $6,000 6,000 Utilities Payable 1,500 Salaries Payable (f)9,000 Interest Payable (g)200 Unearned Revenue 5,000(e)3,000 2,000 Notes Payable 50,000 Common Stock 250,000 Dividends35,000 Service Revenue 120,000 (e, h)7,000 127,000 Rent Expense20,000 (a)2,000 22,000 Salaries Expense25,000 (f)9,000 34,000 Demonstration of E3-30 © 2016 Pearson Education, Inc.
75
3-75 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Prepaid Insurance3,000 (a)2,000 1,000 Equipment180,000 Accumulated Depreciation—Equipment (c)1,800 $1,800 Computers110,000 Accumulated Depreciation—Computers (d)2,200 Accounts Payable $6,000 6,000 Utilities Payable 1,500 Salaries Payable (f)9,000 Interest Payable (g)200 Unearned Revenue 5,000(e)3,000 2,000 Notes Payable 50,000 Common Stock 250,000 Dividends35,000 Service Revenue 120,000 (e, h)7,000 127,000 Rent Expense20,000 (a)2,000 22,000 Salaries Expense25,000 (f)9,000 34,000 Supplies Expense (b)300 Demonstration of E3-30 © 2016 Pearson Education, Inc.
76
3-76 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Prepaid Insurance3,000 (a)2,000 1,000 Equipment180,000 Accumulated Depreciation—Equipment (c)1,800 $1,800 Computers110,000 Accumulated Depreciation—Computers (d)2,200 Accounts Payable $6,000 6,000 Utilities Payable 1,500 Salaries Payable (f)9,000 Interest Payable (g)200 Unearned Revenue 5,000(e)3,000 2,000 Notes Payable 50,000 Common Stock 250,000 Dividends35,000 Service Revenue 120,000 (e, h)7,000 127,000 Rent Expense20,000 (a)2,000 22,000 Salaries Expense25,000 (f)9,000 34,000 Supplies Expense (b)300 Utilities Expense9,000 Demonstration of E3-30 © 2016 Pearson Education, Inc.
77
3-77 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Prepaid Insurance3,000 (a)2,000 1,000 Equipment180,000 Accumulated Depreciation—Equipment (c)1,800 $1,800 Computers110,000 Accumulated Depreciation—Computers (d)2,200 Accounts Payable $6,000 6,000 Utilities Payable 1,500 Salaries Payable (f)9,000 Interest Payable (g)200 Unearned Revenue 5,000(e)3,000 2,000 Notes Payable 50,000 Common Stock 250,000 Dividends35,000 Service Revenue 120,000 (e, h)7,000 127,000 Rent Expense20,000 (a)2,000 22,000 Salaries Expense25,000 (f)9,000 34,000 Supplies Expense (b)300 Utilities Expense9,000 Depreciation Expense—Equipment (c)1,800 Demonstration of E3-30 © 2016 Pearson Education, Inc.
78
3-78 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Prepaid Insurance3,000 (a)2,000 1,000 Equipment180,000 Accumulated Depreciation—Equipment (c)1,800 $1,800 Computers110,000 Accumulated Depreciation—Computers (d)2,200 Accounts Payable $6,000 6,000 Utilities Payable 1,500 Salaries Payable (f)9,000 Interest Payable (g)200 Unearned Revenue 5,000(e)3,000 2,000 Notes Payable 50,000 Common Stock 250,000 Dividends35,000 Service Revenue 120,000 (e, h)7,000 127,000 Rent Expense20,000 (a)2,000 22,000 Salaries Expense25,000 (f)9,000 34,000 Supplies Expense (b)300 Utilities Expense9,000 Depreciation Expense—Equipment (c)1,800 Depreciation Expense—Computers (d)2,200 Demonstration of E3-30 © 2016 Pearson Education, Inc.
79
3-79 CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Prepaid Insurance3,000 (a)2,000 1,000 Equipment180,000 Accumulated Depreciation—Equipment (c)1,800 $1,800 Computers110,000 Accumulated Depreciation—Computers (d)2,200 Accounts Payable $6,000 6,000 Utilities Payable 1,500 Salaries Payable (f)9,000 Interest Payable (g)200 Unearned Revenue 5,000(e)3,000 2,000 Notes Payable 50,000 Common Stock 250,000 Dividends35,000 Service Revenue 120,000 (e, h)7,000 127,000 Rent Expense20,000 (a)2,000 22,000 Salaries Expense25,000 (f)9,000 34,000 Supplies Expense (b)300 Utilities Expense9,000 Depreciation Expense—Equipment (c)1,800 Depreciation Expense—Computers (d)2,200 Interest Expense (g)200 Demonstration of E3-30 © 2016 Pearson Education, Inc.
80
CLEAR TELEPHONIC SERVICES Worksheet 31-Dec-16 Account NamesUnadjusted Trial BalanceAdjustments Adjusted Trial Balance DebitCreditDebitCredit DebitCredit Cash$30,000 Accounts Receivable20,000 (h)$4,000 24,000 Office Supplies500 (b)$300 200 Prepaid Insurance3,000 (a)2,000 1,000 Equipment180,000 Accumulated Depreciation—Equipment (c)1,800 $1,800 Computers110,000 Accumulated Depreciation—Computers (d)2,200 Accounts Payable $6,000 6,000 Utilities Payable 1,500 Salaries Payable (f)9,000 Interest Payable (g)200 Unearned Revenue 5,000(e)3,000 2,000 Notes Payable 50,000 Common Stock 250,000 Dividends35,000 Service Revenue 120,000 (e, h)7,000 127,000 Rent Expense20,000 (a)2,000 22,000 Salaries Expense25,000 (f)9,000 34,000 Supplies Expense (b)300 Utilities Expense9,000 Depreciation Expense—Equipment (c)1,800 Depreciation Expense—Computers (d)2,200 Interest Expense (g)200 Total$432,500 $22,500 $449,700 Demonstration of E3-30
81
End of Chapter 3 3-81 © 2016 Pearson Education, Inc.
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.