Analysis Component 1. Analyze the differences between the unadjusted and adjusted trial balances to determine the eight ad- justments that likely were made. Show the results of your analysis by inserting these adjustment amounts in the table's two middle columns. Label cach adjustment with a letter a through h and pro- vide a short description of it at the bottom of the table. Preparation Component 2. Use the information in the adjusted trial balance to prepare the company's (a) income statement and its statement of owner's equity for the year ended July 31, 2015 (Note: J. Logan, Capital at July 31, 2014, was $40,000, and the current-year withdrawals were $5,000), and (b) the balance sheet as of July 31, 2015. Unadjusted Trial Balance Adjusted Trial Balance Adjustments Cash $ 34.000 $ 34.000 Accounts receivable 14,000 22.000 Office supplies. 16.000 2.000 Prepaid insurance Office equipment 8,540 2.960 84,000 84.000 Accum. depreciation Office equip $ 14,000 9,100 $ 20,000 Accounts payable Interest payable Salaries payable 10,000 1,000 7,000 Unearned consulting fees 18.000 15,000 52.000 Long-term notes payable J Logan, Capital J Logan, Withdrawals Consulting fees earned 52.000 40,000 40,000 5.000 5,000 123.240 134,240 Depreciation expense Office equip 6.000 Salaries expense 67,000 74.000 Interest expense 1.200 2.200 Insurance expense 5,580 Rent expense 14.500 14500 Office supplies expense 14.000 Advertising expense 12.100 13.000 Tota $256,340 $256,340 $279.240 $279,240
Analysis Component 1. Analyze the differences between the unadjusted and adjusted trial balances to determine the eight ad- justments that likely were made. Show the results of your analysis by inserting these adjustment amounts in the table's two middle columns. Label cach adjustment with a letter a through h and pro- vide a short description of it at the bottom of the table. Preparation Component 2. Use the information in the adjusted trial balance to prepare the company's (a) income statement and its statement of owner's equity for the year ended July 31, 2015 (Note: J. Logan, Capital at July 31, 2014, was $40,000, and the current-year withdrawals were $5,000), and (b) the balance sheet as of July 31, 2015. Unadjusted Trial Balance Adjusted Trial Balance Adjustments Cash $ 34.000 $ 34.000 Accounts receivable 14,000 22.000 Office supplies. 16.000 2.000 Prepaid insurance Office equipment 8,540 2.960 84,000 84.000 Accum. depreciation Office equip $ 14,000 9,100 $ 20,000 Accounts payable Interest payable Salaries payable 10,000 1,000 7,000 Unearned consulting fees 18.000 15,000 52.000 Long-term notes payable J Logan, Capital J Logan, Withdrawals Consulting fees earned 52.000 40,000 40,000 5.000 5,000 123.240 134,240 Depreciation expense Office equip 6.000 Salaries expense 67,000 74.000 Interest expense 1.200 2.200 Insurance expense 5,580 Rent expense 14.500 14500 Office supplies expense 14.000 Advertising expense 12.100 13.000 Tota $256,340 $256,340 $279.240 $279,240
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:PART C: INTERPRETING UNADJUSTED AND ADJUSTED TRIAL BALANCE
A six-column table for JKL Company follows. The first two columns contain the unadjusted trial bal-
ance for the company as of July 31, 2015. The last two columns contain the adjusted trial balance as
of the same date.
Required
Analysis Component
1. Analyze the differences between the unadjusted and adjusted trial balances to determine the eight ad-
justments that likely were made. Show the results of your analysis by inserting these adjustment
amounts in the table's two middle columns. Label cach adjustment with a letter a through h and pro-
vide a short description of it at the bottom of the table.
Preparation Component
2. Use the information in the adjusted trial balance to prepare the company's (a) income statement and
its statement of owner's equity for the year ended July 31, 2015 (Note: J. Logan, Capital at July 31,
2014. was $40,000, and the current-year withdrawals were S5,000), and (b) the balance sheet as of
July 31, 2015.
Unadjusted
Trial Balance
Adjusted
Trial Balance
Adjustments
Cash
$ 34,000
$ 34.000
Accounts receivable
14.000
22.000
Office supplies
16.000
2.000
Prepaid insurance
8.540
2,960
Office equipment
Accum. depreciation
Office equip
Accounts payable
Interest payable
Salaries payable
Unearned consulting fees
84,000
84,000
$ 14,000
$ 20,000
9,100
10,000
1,000
7,000
18.000
15,000
Long-term notes payable
52.000
52.000
J Logan, Capital
J Logan, Withdrawals
Consulting fees earned
40,000
40,000
5,000
5,000
123,240
134,240
Depreciation expense
Office equip
6.000
Salaries expense
67,000
74,000
Interest expense
1.200
2.200
Insurance expense
5.580
Rent expense
14.500
14.500
Office supplies expense
14.000
Advertising expense
12.100
13.000
Totals
$256.340
$256,340
$279.240
$279,240
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