Accounting work sheet:
An accounting worksheet is an statement used to help book keeper to complete accounting cycle and preparation of year end reports.
Preparation of necessary work sheetstarting with the unadjusted

Explanation of Solution
Company PDAccounting Work SheetFor year ended April,30. | |||||||||||
Unadjusted Trial balance | Adjustments | AdjustedTrial balance | Income Statement | ||||||||
No. | Account Title | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. |
101 | Cash | 7,000 | 7,000 | 7,000 | |||||||
126 | Supplies | 16,000 | 8,100 | 7,900 | 7,900 | ||||||
128 | Prepaid Insurance | 12,600 | 10,600 | 2,000 | 2,000 | ||||||
167 | Equipment | 2,00,000 | 2,00,000 | 2,00,000 | |||||||
168 | 14,000 | 7,000 | 21,000 | 21,000 | |||||||
201 | Accounts payable | 6,800 | 800 | 7,600 | 7,600 | ||||||
203 | Interest payable | 0 | 300 | 300 | 300 | ||||||
208 | Rent payable | 0 | 3,000 | 3,000 | 3,000 | ||||||
210 | Wages payable | 0 | 2,000 | 2,000 | 2,000 | ||||||
213 | Property tax payable | 0 | 550 | 550 | 550 | ||||||
251 | Long-term notes payable | 30,000 | 30,000 | 30,000 | |||||||
301 | J. Bonn capital | 86,900 | 86,900 | 86,900 | |||||||
302 | J. Bonn withdrawal | 12,000 | 12,000 | 12,000 | |||||||
401 | Demolition fees earned | 187,000 | 187,000 | 187,000 | |||||||
612 | Depreciation expense − equipment | 0 | 7,000 | 7,000 | 7,000 | ||||||
623 | Wages expenses | 41,400 | 2,000 | 43,400 | 43,400 | ||||||
633 | Interest expense | 3,300 | 300 | 3,600 | 3,600 | ||||||
637 | Insurance expense | 0 | 10,600 | 10,600 | 10,600 | ||||||
640 | Rent expense | 13,200 | 3,000 | 16,200 | 16,200 | ||||||
652 | Supplies expense | 0 | 8,100 | 8,100 | 8,100 | ||||||
683 | Property tax expense | 9,700 | 550 | 10,250 | 10,250 | ||||||
684 | Repairs expense | 4,700 | 0 | 4,700 | 4,700 | ||||||
690 | Utilities expense | 4,800 | 800 | 5,600 | 5,600 |
Journal Entries:
A
Accounting rules for journal entries:
- To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.
- To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.
The necessary

Explanation of Solution
Recording of supplies expense:
Date | Account Title and Explanation | Post Ref. | Debit($) | Credit($) |
April-30 | Supplies expense | 8,100 | ||
Supplies account | 8,100 | |||
(to record the expense of supplies) |
- Since, supplies is an expense and expense is increased. Hence, supplies expense account is debited.
- Since, supplies accountis an assetand asset is decreased. Hence, supplies account is credited.
Recording of insurance expense:
Date | Account Title and Explanation | Post Ref. | Debit($) | Credit($) |
April-30 | Insurance expense | 10,600 | ||
Prepaid insurance | 10,600 | |||
(to record payment of wages) |
- Since, insurance is an expense and expense is increased. Hence, insurance expense account is debited.
- Since, prepaid insurance is an asset and asset is decreased. Hence, prepaid insurance account is credited.
Recording of
Date | Account Title and Explanation | Post Ref. | Debit($) | Credit($) |
April-30 | Depreciation expense-equipment | 7,000 | ||
Accumulated depreciation−equipment | 7,000 | |||
(to record depreciation expense) |
- Since, depreciation is an expense and expense is increased. Hence, depreciation expense account is debited.
- Since, accumulated depreciation is a liability and liability is increased. Hence, accumulated depreciation account is credited.
Purchase of supplies:
Date | Account Title and Explanation | Post Ref. | Debit($) | Credit($) |
April-30 | Utilities expense | 800 | ||
Accounts payable | 800 | |||
(to record purchase of supplies) |
- Since, utilities is an expense, and expense is increased. Hence, utilities expense account is debited.
- Since, accounts payable is a liability and liability is increased. Hence, accounts payable account is credited.
Recording of wages expense:
Date | Account Title and Explanation | Post Ref. | Debit($) | Credit($) |
April-30 | Wages expense | 2,000 | ||
Wages payable | 2,000 | |||
(recording of wages expense) |
- Since, wages is an expense and expense is increased. Hence, wages expense account is debited.
- Since, wages payable is a liability and liability is increased. Hence, wages payable account is credited.
Recording of property tax expense:
Date | Account Title and Explanation | Post Ref. | Debit($) | Credit($) |
April-30 | Property tax expense | 550 | ||
Property tax payable | 550 | |||
(recording of property tax expense) |
- Since, property tax is an expense and expense is increased. Hence, property tax expense account is debited.
- Since, property tax payable is a liability and liability is increased. Hence, property tax payable account is credited.
Recording of interest expense:
Date | Account Title and Explanation | Post Ref. | Debit($) | Credit($) |
April-30 | Interest expense | 300 | ||
Interest payable | 300 | |||
(recording of interest expense) |
- Since, interest is an expense and expense is increased. Hence, interest expense account is debited.
- Since, interest payable is a liability and liability is increased. Hence, interest payable account is credited.
The necessary closing journal entries for the Company PD for the year ended April 30.
Transfer of fees earned to income statement:
Date | Account Title and Explanation | Post Ref. | Debit($) | Credit($) |
April-30 | Demolition fees earned | 187,000 | ||
Income statement | 187,000 | |||
(recording of transfer of fees earned to income statement) |
Adjustment of expenses against income earned:
Date | Account Title and Explanation | Post Ref. | Debit($) | Credit($) |
April-30 | Income statement | 109,450 | ||
Depreciation expense-Equipment | 7,000 | |||
Wages expense | 43,400 | |||
Insurance expense | 10,600 | |||
Rent expense | 16,200 | |||
Supplies expense | 8,100 | |||
Repairs expense | 4,700 | |||
Utilities expense | 5,600 | |||
Interest expense | 3,600 | |||
Property tax expense | 10,250 | |||
(adjustment of expenses against income earned) |
Income earned is transferred to capital account:
Date | Account Title and Explanation | Post Ref. | Debit($) | Credit($) |
April-30 | Income statement | 77,550 | ||
J. bonn, capital | 77,550 | |||
(transferring of income earned to capital account) |
Reduction of capital account:
Date | Account Title and Explanation | Post Ref. | Debit($) | Credit($) |
April-30 | J. bonn, capital | 12,000 | ||
J. bonn, withdrawal | 12,000 | |||
(recording of withdrawal of capital) |
Income Statement:
An income statement is one of the financial statement of the company which shows the company's
Statement of Owner'sEquity:
A statement of owner's equity reflects changes in capital balance of a business over a reporting period.
Balance Sheet:
The financial statement in which the worth of assets, liabilities and equity of a company or an entity is shown in a classified form is a balance sheet.
Theincome statement, statement of owner's equity and the balance sheet for Company PD as on year ended April, 30.

Explanation of Solution
The income statement ofCompany PD for the year ended April, 30 shows the income of $77,550.
Company PDIncome Statement,For the year ended, April 30 | ||
Debit($) | Credit($) | |
Revenues: | ||
Demolition fees earned | 187,000 | |
Total Revenue | 187,000 | |
Expenses: | ||
Depreciation expense-Equipment | 7,000 | |
Wages expense | 43,400 | |
Insurance expense | 10,600 | |
Rent expense | 16,200 | |
Supplies expense | 8,100 | |
Repairs expense | 4,700 | |
Utilities expense | 5,600 | |
Interest expense | 3,600 | |
Property tax expense | 10,250 | |
Total Expense | 109,450 | |
Net Income | 77,550 |
The statement of owner's equity for Company PD shows the closing balance of $152,450.
Company PD | ||
Statement of Owner's Equity | ||
Amount($) | Amount($) | |
Owner's Equity opening balance | 46,900 | |
Add: Capital introduced by owner | 40,000 | |
Add: Net income | 77,550 | |
Total: | 164,450 | |
Less: Withdrawals | (12,000) | |
Closing Balance | 152,450 |
The balance sheet of Company PD shows a total of $195,900.
Company PD | ||
Balance Sheet as at April, 30 | ||
Amount ($) | Amount ($) | |
Liabilities and Owners Equity | ||
Accounts payable | 7,600 | |
Wages payable | 2,000 | |
Rent payable | 3,000 | |
Interest Payable | 300 | |
Property tax payable | 550 | |
Long-term notes payable | 30,000 | |
Total Liabilities | 43,450 | |
Owners Equity | 152,450 | |
Total Liabilities and Owners Equity | 195,900 | |
Current Assets, Loans & Advances | ||
Cash | 7,000 | |
Supplies | 7,900 | |
Prepaid Insurance | 2,000 | |
Total Current Assets, Loans & Advances | 16,900 | |
Property, Plant and Equipment | ||
Equipment | 179,000 | |
Total Property, Plant and Equipment | 179,000 | |
Total Assets | 195,900 |
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