COLLEGE ACCOUNTING LOOSE-LEAF + CONNECT
COLLEGE ACCOUNTING LOOSE-LEAF + CONNECT
16th Edition
ISBN: 9781265167943
Author: Haddock
Publisher: MCG
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Chapter 5, Problem 2PA

1.

To determine

Record the adjusted trial balance in adjusted trial balance column of the worksheet.

1.

Expert Solution
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Explanation of Solution

Trial Balance: Trial balance is the summary of all the accounts affected in a financial year. Financial statements are prepared with the help of trial balance.

The adjusted trial balance section of the worksheet of UBS is as follows:

Account Title

Unadjusted

Trial balance

Adjustments

Adjusted

Trial balance

 Dr. ($)Cr. ($)Dr. ($)Cr. ($)Dr. ($)Cr. ($)
Cash    23,075 
Accounts receivable    3,812 
Supplies    4,600 
Prepaid rent    21,000 
Equipment    27,500 
Accumulated depreciation-equipment     950
Accounts payable     9,000
RD, capital     41,837
RD, drawing    4,000 
Fees income     48,550
Depreciation expense–equipment    950 
Rent expense    3500 
Salaries expense    8500 
Supplies expense    2,900 
Utilities expense    500 
Total    $100,337$100,337

Table (1)

2.

To determine

Prepare the adjusting entries in the adjustment column.

2.

Expert Solution
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Explanation of Solution

The adjustments section of the worksheet of UBS is as follows:

Account Title

Unadjusted

Trial balance

Adjustments

Adjusted

Trial balance

 Dr. ($)Cr. ($)Dr. ($)Cr. ($)Dr. ($)Cr. ($)
Cash    23,075 
Accounts receivable    3,812 
Supplies   2,9004,600 
Prepaid rent   3,50021,000 
Equipment    27,500 
Accumulated depreciation-equipment   950 950
Accounts payable     9,000
RD, capital     41,837
RD, drawing    4,000 
Fees income     48,550
Depreciation expense–equipment  950 950 
Rent expense  3,500 3500 
Salaries expense    8500 
Supplies expense  2,900 2,900 
Utilities expense    500 
Total  7,3507,350100,337100,337

Table (2)

3.

To determine

Complete the trial balance columns of the worksheet and find out the balance of prepaid rent prior to the adjustment made.

3.

Expert Solution
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Explanation of Solution

The complete trial balance columns of the worksheet of UBS are as follows:

Account Title

Unadjusted

Trial balance

Adjustments

Adjusted

Trial balance

 Dr. ($)Cr. ($)Dr. ($)Cr. ($)Dr. ($)Cr. ($)
Cash23,075   23,075 
Accounts receivable3,812   3,812 
Supplies7,500  2,9004,600 
Prepaid rent24,500  3,50021,000 
Equipment27,500   27,500 
Accumulated depreciation-equipment   950 950
Accounts payable 9,000   9,000
RD, capital 41,837   41,837
RD, drawing4,000   4,000 
Fees income 48,550   48,550
Depreciation expense–equipment  950 950 
Rent expense  3,500 3500 
Salaries expense8,500   8500 
Supplies expense  2,900 2,900 
Utilities expense500   500 
Total99,38799,3877,3507,350100,337100,337

Table (3)

The balance of prepaid rent prior to the adjusting entry of expired rent was $24,500.

Working Note:

Calculate balance of prepaid rent prior to the adjusting entry of expired rent:

Unadjustedprepaidinsurancebalance=Adjustedbalance+Expiredrent=$21,000+$3,500=$24,500

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