Prepare adjusted trial balance George JohnnyTrial BalanceAccounts TitleDebitCreditCash130,200SuppliesPrepaid RentPrepaid Insurance20,0009,0006,000Accounts Receivable130,000Allowance for Doubtful Accounts10,000EquipmentAccounts Payable30,00030,000Salaries Payable30,000Bank Loan50,000Mr. George, CapitalMr. George, Drawings100,00030,000Service Revenue400,000Legal ExpenseSalaries ExpenseBad Debts Expense4,800210,00010,000Supplies Expense40,000Total620,000 620,000 George JohnnyAdjusting EntriesDateAccounts TitleDebitCreditBad Debts ExpenseAllowance for Doubtful Accounts(To record allowance for uncollectible account made)a10,00010,000Supplies ExpenseSuppliesb40,00040,000(To record supplies utilized)Salaries ExpenseSalaries Payable30,00030,000(To record salaries expense incurred)

Unadjusted Trial Balance - Unadjusted Trial Balance is the trial balance before making adjustments.…

George Johnny Trial Balance Accounts Title Debit Credit Cash 130,200 20,000 9,000 6,000 130,000 Supplies Prepaid Rent Prepaid Insurance Accounts Receivable Allowance for Doubtful Accounts Equipment Accounts Payable Salaries Payable 10,000 30,000 30,000 30,000 Bank Loan 50,000 Mr. George, Capital Mr. George, Drawings 100,000 30,000 Service Revenue 400,000 Legal Expense Salaries Expense Bad Debts Expense Supplies Expense 4,800 210,000 10,000 40,000 Total 620,000 620,000

George Johnny Trial Balance Accounts Title Debit Credit Cash 130,200 20,000 9,000 6,000 130,000 Supplies Prepaid Rent Prepaid Insurance Accounts Receivable Allowance for Doubtful Accounts Equipment Accounts Payable Salaries Payable 10,000 30,000 30,000 30,000 Bank Loan 50,000 Mr. George, Capital Mr. George, Drawings 100,000 30,000 Service Revenue 400,000 Legal Expense Salaries Expense Bad Debts Expense Supplies Expense 4,800 210,000 10,000 40,000 Total 620,000 620,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 3SEQ

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Concept explainers

The Effect Of Prepaid Taxes On Assets And Liabilities

Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.

Final Accounts

Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.

Ledger Posting

A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.

Trial Balance and Final Accounts

In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.

Adjustment Entries

At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.

Question

Prepare adjusted trial balance

George Johnny
Trial Balance
Accounts Title
Debit
Credit
Cash
130,200
Supplies
Prepaid Rent
Prepaid Insurance
20,000
9,000
6,000
Accounts Receivable
130,000
Allowance for Doubtful Accounts
10,000
Equipment
Accounts Payable
30,000
30,000
Salaries Payable
30,000
Bank Loan
50,000
Mr. George, Capital
Mr. George, Drawings
100,000
30,000
Service Revenue
400,000
Legal Expense
Salaries Expense
Bad Debts Expense
4,800
210,000
10,000
Supplies Expense
40,000
Total
620,000 620,000

George Johnny
Adjusting Entries
Date
Accounts Title
Debit
Credit
Bad Debts Expense
Allowance for Doubtful Accounts
(To record allowance for uncollectible account made)
a
10,000
10,000
Supplies Expense
Supplies
b
40,000
40,000
(To record supplies utilized)
Salaries Expense
Salaries Payable
30,000
30,000
(To record salaries expense incurred)

Definition Definition Statement that shows the ending balance of all the ledger accounts of a firm at the end of the accounting period. The trial balance is prepared after all the entries have been posted to the ledger accounts and assists in preparing the final accounts of a firm.

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