Journalize and Post Adjusting Entries from the Work Sheet Jason Armstrong started a business called Campus Delivery Service. After the first month of operations, the trial balance as of November 30, 20--, is as shown: Campus Delivery Service Work Sheet (Partial) For Month Ended November 30, 20-- Trial Balance Adjustments Account Title Debit Credit Debit Credit Cash 980 Accounts Receivable 590 Supplies 575 Prepaid Insurance 1,300 Van 5,800 Accumulated Depreciation - Van Accounts Payable 960 Wages Payable Jason Armstrong, Capital 10,000 Jason Armstrong, Drawing 600 Delivery Fees 2,600 Wages Expense 1,800 Advertising Expense 380 Rent Expense 900 Supplies Expense Phone Expense 220 Insurance Expense Repair Expense 315 Oil and Gas Expense 100 Depreciation Expense - Van 13,560 13,560 Additional information: Account Name Account Number Balance in Account Before Adjusting Entry Supplies 141 $ 575 Prepaid Insurance 145 1,300 Accum. Depr.-Van 185.1 0 Wages Payable 219 0 Wages Expense 511 1,800 Supplies Expense 523 0 Insurance Expense 535 0 Depr. Expense-Van 541 0 The following adjustments were made for the month of November. Ending inventory of supplies on November 30, $185. Unexpired (remaining) insurance as of November 30, $800. Depreciation expense on van, $300. Wages earned but not paid as of November 30, $190. Required: 1. Journalize the adjusting entries on page 5 of the general journal. If an amount box does not require an entry, leave it blank. Do not enter in the posting references until you complete part 2. GENERAL JOURNAL PAGE 5 DATE DESCRIPTION POST. REF. DEBIT CREDIT Adjusting Entries a. Supplies Expense Supplies b. Insurance Expense Prepaid Insurance c. Depreciation Expense-Van Accumulated Depreciation-Van d. Wages Expense Wages Payable 2. Post the adjusting entries to the general ledger. If an amount box does not require an entry, leave it blank. After posting to the general ledger, complete the posting in part 1. GENERAL LEDGER ACCOUNT Supplies ACCOUNT NO. 141 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 20-- Nov. 1 J1 475.00 475.00 Nov. 15 J4 100.00 575.00 Nov. 30 Adjusting J5 ACCOUNT Prepaid Insurance ACCOUNT NO. 145 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 20-- Nov. 1 J1 1,300.00 1,300.00 Nov. 30 Adjusting J5 ACCOUNT Accumulated Depreciation—Van ACCOUNT NO. 185.1 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 20-- Nov. 30 Adjusting J5 ACCOUNT Wages Payable ACCOUNT NO. 219 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 20-- Nov. 30 Adjusting J5 ACCOUNT Wages Expense ACCOUNT NO. 511 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 20-- Nov. 15 J3 900.00 900.00 Nov. 26 J4 900.00 1,800.00 Nov. 30 Adjusting J5 ACCOUNT Supplies Expense ACCOUNT NO. 523 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 20-- Nov. 30 Adjusting J5 ACCOUNT Insurance Expense ACCOUNT NO. 535 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 20-- Nov. 30 Adjusting J5 ACCOUNT Depreciation Expense—Van ACCOUNT NO. 541 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 20-- Nov. 30 Adjusting J5 Feedback Journalizing a transaction: 1. Enter the date. 2. Enter the account to be debited and the dollar amount in the debit column. 3. Enter the account to be credited and the dollar amount in the credit column.
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.
Journalize and Post
Jason Armstrong started a business called Campus Delivery Service. After the first month of operations, the
| Campus Delivery Service Work Sheet (Partial) For Month Ended November 30, 20-- |
||||
|---|---|---|---|---|
| Trial Balance | Adjustments | |||
| Account Title | Debit | Credit | Debit | Credit |
| Cash | 980 | |||
| 590 | ||||
| Supplies | 575 | |||
| Prepaid Insurance | 1,300 | |||
| Van | 5,800 | |||
| Accounts Payable | 960 | |||
| Wages Payable | ||||
| Jason Armstrong, Capital | 10,000 | |||
| Jason Armstrong, Drawing | 600 | |||
| Delivery Fees | 2,600 | |||
| Wages Expense | 1,800 | |||
| Advertising Expense | 380 | |||
| Rent Expense | 900 | |||
| Supplies Expense | ||||
| Phone Expense | 220 | |||
| Insurance Expense | ||||
| Repair Expense | 315 | |||
| Oil and Gas Expense | 100 | |||
| Depreciation Expense - Van | ||||
| 13,560 | 13,560 |
Additional information:
Account Name |
Account Number |
Balance in Account Before Adjusting Entry |
|
| Supplies | 141 | $ | 575 |
| Prepaid Insurance | 145 | 1,300 | |
| Accum. Depr.-Van | 185.1 | 0 | |
| Wages Payable | 219 | 0 | |
| Wages Expense | 511 | 1,800 | |
| Supplies Expense | 523 | 0 | |
| Insurance Expense | 535 | 0 | |
| Depr. Expense-Van | 541 | 0 |
The following adjustments were made for the month of November.
- Ending inventory of supplies on November 30, $185.
- Unexpired (remaining) insurance as of November 30, $800.
- Depreciation expense on van, $300.
- Wages earned but not paid as of November 30, $190.
Required:
1. Journalize the adjusting entries on page 5 of the general journal. If an amount box does not require an entry, leave it blank. Do not enter in the posting references until you complete part 2.
| GENERAL JOURNAL | PAGE 5 | |||
|---|---|---|---|---|
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT |
| Adjusting Entries | ||||
| a. | Supplies Expense | |||
| Supplies | ||||
| b. | Insurance Expense | |||
| Prepaid Insurance | ||||
| c. | Depreciation Expense-Van | |||
| Accumulated Depreciation-Van | ||||
| d. | Wages Expense | |||
| Wages Payable |
2. Post the adjusting entries to the general ledger. If an amount box does not require an entry, leave it blank. After posting to the general ledger, complete the posting in part 1.
| GENERAL LEDGER | ||||||
|---|---|---|---|---|---|---|
| ACCOUNT | Supplies | ACCOUNT NO. | 141 | |||
| BALANCE | ||||||
| DATE | ITEM | POST. REF. | DEBIT | CREDIT | DEBIT | CREDIT |
| 20-- | ||||||
| Nov. 1 | J1 | 475.00 | 475.00 | |||
| Nov. 15 | J4 | 100.00 | 575.00 | |||
| Nov. 30 | Adjusting | J5 |
| ACCOUNT | Prepaid Insurance | ACCOUNT NO. | 145 | |||
|---|---|---|---|---|---|---|
| BALANCE | ||||||
| DATE | ITEM | POST. REF. | DEBIT | CREDIT | DEBIT | CREDIT |
| 20-- | ||||||
| Nov. 1 | J1 | 1,300.00 | 1,300.00 | |||
| Nov. 30 | Adjusting | J5 |
| ACCOUNT | Accumulated Depreciation—Van | ACCOUNT NO. | 185.1 | |||
|---|---|---|---|---|---|---|
| BALANCE | ||||||
| DATE | ITEM | POST. REF. | DEBIT | CREDIT | DEBIT | CREDIT |
| 20-- | ||||||
| Nov. 30 | Adjusting | J5 |
| ACCOUNT | Wages Payable | ACCOUNT NO. | 219 | |||
|---|---|---|---|---|---|---|
| BALANCE | ||||||
| DATE | ITEM | POST. REF. | DEBIT | CREDIT | DEBIT | CREDIT |
| 20-- | ||||||
| Nov. 30 | Adjusting | J5 |
| ACCOUNT | Wages Expense | ACCOUNT NO. | 511 | |||
|---|---|---|---|---|---|---|
| BALANCE | ||||||
| DATE | ITEM | POST. REF. | DEBIT | CREDIT | DEBIT | CREDIT |
| 20-- | ||||||
| Nov. 15 | J3 | 900.00 | 900.00 | |||
| Nov. 26 | J4 | 900.00 | 1,800.00 | |||
| Nov. 30 | Adjusting | J5 |
| ACCOUNT | Supplies Expense | ACCOUNT NO. | 523 | |||
|---|---|---|---|---|---|---|
| BALANCE | ||||||
| DATE | ITEM | POST. REF. | DEBIT | CREDIT | DEBIT | CREDIT |
| 20-- | ||||||
| Nov. 30 | Adjusting | J5 |
| ACCOUNT | Insurance Expense | ACCOUNT NO. | 535 | |||
|---|---|---|---|---|---|---|
| BALANCE | ||||||
| DATE | ITEM | POST. REF. | DEBIT | CREDIT | DEBIT | CREDIT |
| 20-- | ||||||
| Nov. 30 | Adjusting | J5 |
| ACCOUNT | Depreciation Expense—Van | ACCOUNT NO. | 541 | |||
|---|---|---|---|---|---|---|
| BALANCE | ||||||
| DATE | ITEM | POST. REF. | DEBIT | CREDIT | DEBIT | CREDIT |
| 20-- | ||||||
| Nov. 30 | Adjusting | J5 |
Journalizing a transaction:
1. Enter the date.
2. Enter the account to be debited and the dollar amount in the debit column.
3. Enter the account to be credited and the dollar amount in the credit column.
FIGURE 5-21 Journalizing Adjusting Entries from the Work Sheet
| Rohan's Campus Delivery Work Sheet (Partial) For Month Ended June 30, 20-- |
||||
|---|---|---|---|---|
| Trial Balance | Adjustments | |||
| Account Title | Debit | Credit | Debit | Credit |
| Cash | 370 | |||
| Accounts Receivable | 650 | |||
| Supplies | 80 | (a) 60 | ||
| Prepaid Insurance | 200 | (b) 25 | ||
| Delivery Equipment | 3,600 | |||
| Accum. Depr.—Delivery Equipment | (d) 100 | |||
| Accounts Payable | 1,800 | |||
| Wages Payable | (c) 500 | |||
| Rohan Macsen, Capital | 2,000 | |||
| Rohan Macsen, Drawing | 1,500 | |||
| Delivery Fees | 2,150 | |||
| Wages Expense | 650 | (c) 50 | ||
| Rent Expense | 200 | |||
| Supplies Expense | (a) 60 | |||
| Phone Expense | 50 | |||
| Insurance Expense | (b) 25 | |||
| Depr. Expense—Delivery Equipment | (d) 100 | |||
| 5,950 | 5,950 | 235 | 235 |
| GENERAL JOURNAL | PAGE 3 | |||
|---|---|---|---|---|
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT |
| Adjusting Entries | ||||
| 20-- June 30 |
Supplies Expense | 523 | 60 | |
| Supplies | 141 | 60 | ||
| 30 | Insurance Expense | 535 | 25 | |
| Prepaid Insurance | 145 | 25 | ||
| 30 | Wages Expense | 511 | 50 | |
| Wages Payable | 219 | 50 | ||
| 30 | Depr. Expense—Delivery Equipment | 541 | 100 | |
| Accum. Depr.—Delivery Equipment | 185.1 | 100 |
Steps in Posting Process
In the ledger account:
1. Enter the date.
2. Enter the debit.
3. Enter the balance.
4. Enter the journal page in the Posting Reference column.
In the Journal:
5. Enter the ledger account number in the Posting Reference column.
Repeat this process for the credit.
Refer to Figure 5-14 in the text.
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