Chapter 3, Problem P3.46CP

To determine

1)

T-Account and Journal

T Accounts are graphical representations of the effects of financial transactions on the impacted accounts.

They help in understanding the flow of financial transactions and also serve as a log of historical transactions conducted by the entity.

Journal entries record the effect of the financial transactions on impacted accounts and assist in preparation of financial statements. Accounts are debited to increase balances of assets and expenses and credited increase the balance of incomes and liabilities

To prepare:

Journalize the adjusting entries and Post to T-Accounts.

To determine

2)

Adjusted Trial Balance

A trial Balance is a list of the balances of various Assets, Liabilities, Expense and Revenue Accounts. It helps in evaluating the arithmetical accuracy of financial transactions and postings during a reporting period and serves as the starting point in the preparation of financial statements.

Adjusted Trial Balance is prepared to give effect to the adjusting entries.

To prepare:

Adjusted Trial Balance as at 31 December 2018