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5-1
Adjustments and the
Worksheet
Section 1: The Worksheet
Chapter
5
Section Objectives
1. Complete a trial balance on
a worksheet.
2. Prepare adjustments for
unrecorded business
transactions.
McGraw-Hill © 2009 The McGraw-Hill Companies, Inc. All rights reserved.
5-3
ACCOUNT NAME
JT’s Consulting Services
Worksheet
Month Ended December 31, 2010
TRIAL BALANCE BALANCE SHEETADJ. TRIAL BAL.ADJUSTMENTS INCOME STMT.
The worksheet also
has five sections.
The worksheet has
an Account Name column
Each section has
two columns.
DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
Objective 1 Complete a trial balance on a
worksheet
5-4
1. Enter the general ledger account names.
2. Transfer the general ledger account balances to the Debit
and Credit columns of the Trial Balance section.
3. Total the Debit and Credit columns to prove that the trial
balance is in balance.
4. Place a double rule under each Trial Balance column to
show that the work in that column is complete.
Complete the Trial Balance section in
four steps
5-5
ACCOUNT NAME
Carter Consulting Service
Worksheet
Month Ended December 31, 2004
TRIAL BALANCE BALANCE SHEETADJ. TRIAL BAL.ADJUSTMENTS INCOME STATEMENT
CREDITDEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT
Cash
Step 1: Enter the general ledger account names.
CREDIT
TRIAL BALANCE BALANCE SHEETADJ. TRIAL BAL.ADJUSTMENTS INCOME STMT.
DEBIT CREDIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT
ACCOUNT NAME
JT’s Consulting Services
Worksheet
Month Ended December 31, 2010
Cash
Accounts Receivable
Supplies
Prepaid Rent
Equipment
Accum. Depr.—Equip.
Jason Taylor, Cap.
Accounts Payable
Jason Taylor, Draw.
Fees Income
Salaries Expense
Utilities Expense
Supplies Expense
Rent Expense
Depr. Exp.—Equip.
Totals
DEBIT
These four new accounts will
be used for the adjustments.
**If additional new expense accounts
are needed in the adjustment process,
add them to the bottom of the
ACCOUNT NAME column.
Step 1: Enter the general ledger account names.
5-6
Step 2: Transfer the general ledger account balances to
the Debit and Credit columns of the Trial Balance section.
ACCOUNT NAME
JT’s Consulting Services
Worksheet
Month Ended December 31, 2010
TRIAL BALANCE BALANCE SHEETADJ. TRIAL BAL.ADJUSTMENTS INCOME STMT.
CREDITDEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT
83,500
64,400
ACCOUNT ____________________________ ACCOUNT NO. ________
DATE DESCRIPTIONPOSTREF. DEBIT CREDIT DEBIT CREDIT
BALANCE
Nov. 30
Dec. 31
Dec. 31
Dec. 31
Dec. 31
Dec. 31
2010
Bal. forward
J2
J2
J2
J2
J2
26,000
4,000
7,000
500
4,000
65,000
91,000
95,000
88,000
87,500
83,500
Cash 101
Cash
Accounts Rec.
Supplies
Prepaid Rent
Equipment
Accum. Depr.
J. Taylor, Cap.
Accounts Pay.
J. Taylor, Draw.
5-7
CREDIT
TRIAL BALANCE BALANCE SHEETADJ. TRIAL BAL.ADJUSTMENTS INCOME STMT.
DEBIT CREDIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT
ACCOUNT NAME
Cash
Accounts Receivable
Supplies
Prepaid Rent
Equipment
Accum. Depr.—Equip.
Jason Taylor, Cap.
Accounts Payable
Jason Taylor, Draw.
Fees Income
Salaries Expense
Utilities Expense
Supplies Expense
Rent Expense
Depr. Exp.—Equip.
Totals
DEBIT
132,000 132,000
83,500
7,000
90,000
4,000
35,000
7,000
500
22,000
7,000
5,000
3,000Step 4: Place a double rule under
each Trial Balance column to show
that the work in that column is
complete.
Step 3: Total the Debit and Credit columns to prove that
the trial balance is in balance.
5-8
CREDIT
TRIAL BALANCE BALANCE SHEETADJ. TRIAL BAL.ADJUSTMENTS INCOME STMT.
DEBIT CREDIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBITDEBIT
132,000 132,000
83,500
7,000
90,000
4,000
35,000
7,000
500
22,000
7,000
5,000
3,000
These adjusting entries are first
entered in the Adjustments
section of the worksheet.
ACCOUNT NAME
Cash
Accounts Receivable
Supplies
Prepaid Rent
Equipment
Accum. Depr.—Equip.
Jason Taylor, Cap.
Accounts Payable
Jason Taylor, Draw.
Fees Income
Salaries Expense
Utilities Expense
Supplies Expense
Rent Expense
Depr. Exp.—Equip.
Totals
Objective 2 Prepare adjustments for unrecorded
business transactions
5-9
JT’s Consulting Services began the month with $3,000 in supplies.
At the end of the month, $2,000 in supplies remained.
QUESTION:
What dollar amount of supplies was
used during the month?
ANSWER:
$3,000
- 2,000
$1,000
The Supplies Adjustment
5-10
CREDIT
TRIAL BALANCE BALANCE SHEETADJ. TRIAL BAL.ADJUSTMENTS INCOME STMT.
DEBIT CREDIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT
ACCOUNT NAME
JT’s Consulting Services
Worksheet
Month Ended December 31, 2010
Cash
Accounts Receivable
Supplies
Prepaid Rent
Equipment
Accum. Depr.—Equip.
Jason Taylor, Cap.
Accounts Payable
Jason Taylor, Draw.
Fees Income
Salaries Expense
Utilities Expense
Supplies Expense
Rent Expense
Depr. Exp.—Equip.
Totals
DEBIT
132,000 132,000
83,500
7,000
90,000
4,000
35,000
7,000
500
22,000
7,000
5,000
3,000 (a) 1,000
(a) 1,000
5-11
On November 20, 2010, JT’s Consulting Services paid $7,000 for
the December and January rent. As of December 31, 2010, one
month’s rent had already been used up.
QUESTION:
What dollar amount of rent was
used during the month of December?
ANSWER:
$7,000
- 3,500
$3,500
The Prepaid Adjustment
5-12
CREDIT
TRIAL BALANCE BALANCE SHEETADJ. TRIAL BAL.ADJUSTMENTS INCOME STMT.
DEBIT CREDIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT
ACCOUNT NAME
JT’s Consulting Services
Worksheet
Month Ended December 31, 2010
Cash
Accounts Receivable
Supplies
Prepaid Rent
Equipment
Accum. Depr.—Equip.
Jason Taylor, Cap.
Accounts Payable
Jason Taylor, Draw.
Fees Income
Salaries Expense
Utilities Expense
Supplies Expense
Rent Expense
Depr. Exp.—Equip.
Totals
DEBIT
132,000 132,000
83,500
7,000
90,000
4,000
35,000
7,000
500
22,000
7,000
5,000
3,000 (a) 1,000
(a) 1,000
(b) 3,500
(b) 3,500
5-13
The cost is recorded as an asset and charged to expense over the
time the asset is used for the business.
$ ASSET
Expense
Jan.
2008
Expense
Expense
This expense is called
depreciation.
Depreciation
5-14
QUESTION:
What is straight-line depreciation?
Straight-line depreciation (S/L) allocates
an asset’s cost in equal amounts to each
accounting period of its useful life.
ANSWER:
Cost - salvage value
Estimated months of useful lifeS/L depreciation =
There are several methods to calculate depreciation. JT’s
Consulting Services uses the straight-line method.
5-15
JT’s Consulting Services purchased equipment in November, 2010.
· Cost = $22,000
· Useful life = 5 yrs or 60 months (5 yrs x 12 months)
· Salvage value = $0
QUESTION:
What dollar amount of depreciation expense
should be recorded for the month?
ANSWER:$367
$22,000 - $0
60 monthsCost - salvage value
Estimated months of useful life
Calculating Depreciation
5-16
Equipment
+
Accumulated Depreciation—
Equipment
+
Instead of decreasing the asset account directly, the adjustment for
depreciation is recorded in a contra account named Accumulated
Depreciation—Equipment.
Asset account has a
normal debit balance
Contra asset account has
a normal credit balance
Adjustment for Depreciation
5-17
CREDIT
TRIAL BALANCE BALANCE SHEETADJ. TRIAL BAL.ADJUSTMENTS INCOME STMT.
DEBIT CREDIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT
ACCOUNT NAME
JT’s Consulting Services
Worksheet
Month Ended December 31, 2010
Cash
Accounts Receivable
Supplies
Prepaid Rent
Equipment
Accum. Depr.—Equip.
Jason Taylor, Cap.
Accounts Payable
Jason Taylor, Draw.
Fees Income
Salaries Expense
Utilities Expense
Supplies Expense
Rent Expense
Depr. Exp.—Equip.
Totals
DEBIT
132,000 132,000
83,500
7,000
90,000
4,000
35,000
7,000
500
22,000
7,000
5,000
3,000 (a) 1,000
(a) 1,000
(b) 3,500
(b) 3,500
(c) 367
(c) 367
4,8674,867
When all adjustments are
entered, total and rule the
Adjustments columns.
5-18
Equipment
22,000
Accumulated Depreciation—
Equipment
367
Original cost of equipment
Record of all depreciation
taken on equipment
Book value = Original cost – Accumulated depreciation
= 22,000 – 367
= 21,633
Book Value
Adjustments and the
Worksheet
Section 2: Financial Statements
Chapter
5
Section Objectives
3. Complete the worksheet.
4. Prepare an income statement, statement of
owner's equity, and balance sheet from the
completed worksheet.
5. Journalize and post the adjusting entries.
McGraw-Hill © 2010 The McGraw-Hill Companies, Inc. All rights reserved.
5-20
The Accounting Cycle
Step 1
Analyze
transactions
Step 2
Journalize the
data about
transactions
Step 7
Record
closing
entries
Step 3
Post the
data about
transactions
Step 4
Prepare
a
worksheet
Step 5
Prepare
financial
statements
Step 6
Record
adjusting
entriesStep 8
Prepare a
postclosing
trial balance
Step 9
Interpret
the financial
information
Step 4
Prepare
a
worksheet
5-21
You have already seen how to prepare the first twosections of a worksheet:
Preparing a worksheet is the fourth step of the
accounting cycle.
You will now learn how to complete a worksheet.
Trial Balance
Adjustments
Objective 3 Complete the worksheet
5-22
Step 1: Combine the figures from the Trial Balance section and the Adjustments
section. Record the results in the Adjusted Trial Balance columns.
CREDIT
BALANCE SHEETADJ. TRIAL BAL. INCOME STMT.
CREDIT DEBIT CREDIT DEBIT
(c) 367
(a) 1,000
(b) 3,500
(c) 367
(a) 1,500
(b) 3,500
DEBIT
Cash
Accounts Receivable
Supplies
Prepaid Rent
Equipment
Accum. Depr.—Equip.
Jason Taylor, Cap.
Accounts Payable
Jason Taylor, Draw.
Fees Income
Salaries Expense
Utilities Expense
Supplies Expense
Rent Expense
Depr. Exp.—Equip.
Totals 132,000 132,000
83,500
7,000
90,000
4,000
35,000
7,000
500
22,000
7,000
45,000
3,000
4,867 4,867
CREDITDEBIT CREDIT
ACCOUNT NAME
DEBIT
TRIAL BALANCE ADJUSTMENTS
5-23
The accounts that do not have adjustments are extended from the Trial Balance
section to the Adjusted Trial Balance section.
(c) 367
(a) 1,000
(b) 3,500
(c) 367
(a) 1,000
(b) 3,500
83,500
5,000
22,000
7,000
90,000
4,000
7,000
500
35,000
CREDIT
BALANCE SHEETADJ. TRIAL BAL. INCOME STMT.
DEBIT CREDIT DEBIT CREDIT DEBIT
Cash
Accounts Receivable
Supplies
Prepaid Rent
Equipment
Accum. Depr.—Equip.
Jason Taylor, Cap.
Accounts Payable
Jason Taylor, Draw.
Fees Income
Salaries Expense
Utilities Expense
Supplies Expense
Rent Expense
Depr. Exp.—Equip.
Totals 120,000 120,000
83,500
7,000
90,000
4,000
35,000
7,000
500
22,000
7,000
5,000
3,000
4,867 4,867
CREDITDEBIT CREDIT
ACCOUNT NAME
DEBIT
TRIAL BALANCE ADJUSTMENTS
5-24
The Supplies account has a $3,000 debit balance in the Trial Balance section
and a $1,000 credit in the Adjustments section.
($3,000 debit and $1,000 credit = $2,000)
Cash
Accounts Receivable
Supplies
Prepaid Rent
Equipment
Accum. Depr.—Equip.
Jason Taylor, Cap.
Accounts Payable
Jason Taylor, Draw.
Fees Income
Salaries Expense
Utilities Expense
Supplies Expense
Rent Expense
Depr. Exp.—Equip.
Totals
2,000
(c) 367
(a) 1,000
(b) 3,500
(c) 367
(a) 1,000
(b) 3,500
132,000 132,000
83,500
7,000
90,000
4,000
35,000
7,000
500
22,000
7,000
5,000
3,000
4,867 4,867
83,500
5,000
22,000
7,000
90,000
4,000
7,000
500
35,000
367
CREDIT
BALANCE SHEETADJ. TRIAL BAL. INCOME STMT.
CREDIT DEBIT CREDIT DEBIT CREDIT DEBITDEBIT CREDIT
ACCOUNT NAME
DEBIT
TRIAL BALANCE ADJUSTMENTS
5-25
Cash
Accounts Receivable
Supplies
Prepaid Rent
Equipment
Accum. Depr.—Equip.
Jason Taylor, Cap.
Accounts Payable
Jason Taylor, Draw.
Fees Income
Salaries Expense
Utilities Expense
Supplies Expense
Rent Expense
Depr. Exp.—Equip.
Totals
2,000
(c) 367
(a) 1,000
(b) 3,500
(c) 367
(a) 1,000
(b) 3,500
132,000 132,000
83,500
7,000
90,000
4,000
35,000
7,000
500
22,000
7,000
5,000
3,000
4,867 4,867
83,500
5,000
22,000
7,000
90,000
4,000
7,000
500
35,000
CREDIT
BALANCE SHEETADJ. TRIAL BAL. INCOME STMT.
CREDIT DEBIT CREDIT DEBIT CREDIT DEBITDEBIT CREDIT
ACCOUNT NAME
DEBIT
TRIAL BALANCE ADJUSTMENTS
367
1,000
3,500
367
3,500
Step 2: Total the Debit and Credit columns in the Adjusted Trial Balance
section. Confirm that debits equal credits.
132,367 132,367
5-26
Cash
Accounts Receivable
Supplies
Prepaid Rent
Equipment
Accum. Depr.—Equip.
Jason Taylor, Cap.
Accounts Payable
Jason Taylor, Draw.
Fees Income
Salaries Expense
Utilities Expense
Supplies Expense
Rent Expense
Depr. Exp.—Equip.
Totals
2,000
(c) 367
(a) 1,000
(b) 3,500
(c) 367
(a) 1,000
(b) 3,500
132,000 132,000
83,500
7,000
90,000
4,000
35,000
7,000
500
22,000
7,000
5,000
3,000
4,867 4,867
83,500
5,000
22,000
7,000
90,000
4,000
7,000
500
35,000
CREDIT
BALANCE SHEETADJ. TRIAL BAL. INCOME STMT.
CREDIT DEBIT CREDIT DEBIT CREDIT DEBITDEBIT CREDIT
ACCOUNT NAME
DEBIT
TRIAL BALANCE ADJUSTMENTS
367
1,000
3,500
367
3,500
132,367 132,367
For accounts that appear on the balance sheet, enter the amount in the
appropriate column of the Balance Sheet section. For accounts that appear on
the income statement, enter the amount in the appropriate column of the Income
Statement section.
5-27
Cash
Accounts Receivable
Supplies
Prepaid Rent
Equipment
Accum. Depr.—Equip.
Jason Taylor, Cap.
Accounts Payable
Jason Taylor, Draw.
Fees Income
Salaries Expense
Utilities Expense
Supplies Expense
Rent Expense
Depr. Exp.—Equip.
Totals
2,000
(c) 367
(a) 1,000
(b) 3,500
(c) 367
(a) 1,000
(b) 3,500
132,000 132,000
83,500
7,000
90,000
4,000
35,000
7,000
500
22,000
7,000
5,000
3,000
4,867 4,867
83,500
5,000
22,000
7,000
90,000
4,000
7,000
500
35,000
CREDIT
BALANCE SHEETADJ. TRIAL BAL. INCOME STMT.
CREDIT DEBIT CREDIT DEBIT CREDIT DEBITDEBIT CREDIT
ACCOUNT NAME
DEBIT
TRIAL BALANCE ADJUSTMENTS
367
1,000
3,500
367
3,500
132,367 132,367
83,500
5,000
2,000
3,500
22,000
367
7,000
90,000
4,000
35,000
7,000
500
1,000
3,500
367
After all the account balances are transferred to the financial statement
sections, total the Debit and Credit columns.
12,367 35,000 120,000 97,367
5-28
Subtract the smaller total from the larger total in the Income Statement section to
find the Net Income or Net Loss.
Net Income
CREDIT
BALANCE SHEETINCOME STMT.
DEBIT CREDIT DEBIT
83,500
5,000
2,000
22,000
3,500
367
7,000
90,000
4,000
35,000
7,000
500
1,000
367
3,500
35,000 97,36712,367 120,000
367
120,583
TRIAL BALANCE ADJ. TRIAL BAL.ADJUSTMENTS
DEBIT CREDIT CREDIT DEBIT CREDIT
ACCOUNT NAME
Cash
Accounts Receivable
Supplies
Prepaid Rent
Equipment
Accum. Depr.—Equip.
Jason Taylor, Cap.
Accounts Payable
Jason Taylor, Draw.
Fees Income
Salaries Expense
Utilities Expense
Supplies Expense
Rent Expense
Depr. Exp.—Equip.
Totals
DEBIT
83,500
7,000
90,000
4,000
35,000
7,000
500
22,000
7,000
5,000
3,000
83,500
5,000
22,000
4,000
7,000
500
2,000
7,000
90,000
35,000
1,000
367
3,500
132,000 132,000 4,083 4,083
(c) 367
(a) 1,000
(b) 3,500
(c) 367
(a) 1,000
(b) 3,500 3,500
120,583
5-29
Net Income
CREDIT
BALANCE SHEETINCOME STMT.
DEBIT CREDIT DEBIT
83,500
5,000
2,000
22,000
3,500
367
7,000
90,000
4,000
35,000
7,000
500
1,000
367
3,500
35,000 97,36712,367 120,000
367
120,583
TRIAL BALANCE ADJ. TRIAL BAL.ADJUSTMENTS
DEBIT CREDIT CREDIT DEBIT CREDIT
ACCOUNT NAME
Cash
Accounts Receivable
Supplies
Prepaid Rent
Equipment
Accum. Depr.—Equip.
Jason Taylor, Cap.
Accounts Payable
Jason Taylor, Draw.
Fees Income
Salaries Expense
Utilities Expense
Supplies Expense
Rent Expense
Depr. Exp.—Equip.
Totals
DEBIT
83,500
7,000
90,000
4,000
35,000
7,000
500
22,000
7,000
5,000
3,000
83,500
5,000
22,000
4,000
7,000
500
2,000
7,000
90,000
35,000
1,000
367
3,500
132,000 132,000 4,083 4,083
(c) 367
(a) 1,000
(b) 3,500
(c) 367
(a) 1,000
(b) 3,500 3,500
120,583
22,633
Enter the amount on the Net Income line. (35,000 – 12,367 = 22,633)
If the credit total is more than the debit total, the firm has net income. . .
5-30
Net Income
CREDIT
BALANCE SHEETINCOME STMT.
DEBIT CREDIT DEBIT
83,500
5,000
2,000
22,000
3,500
367
7,000
90,000
4,000
35,000
7,000
500
1,000
367
3,500
35,000 97,36712,367 120,000
367
120,583
TRIAL BALANCE ADJ. TRIAL BAL.ADJUSTMENTS
DEBIT CREDIT CREDIT DEBIT CREDIT
ACCOUNT NAME
Cash
Accounts Receivable
Supplies
Prepaid Rent
Equipment
Accum. Depr.—Equip.
Jason Taylor, Cap.
Accounts Payable
Jason Taylor, Draw.
Fees Income
Salaries Expense
Utilities Expense
Supplies Expense
Rent Expense
Depr. Exp.—Equip.
Totals
DEBIT
83,500
7,000
90,000
4,000
35,000
7,000
500
22,000
7,000
5,000
3,000
83,500
5,000
22,000
4,000
7,000
500
2,000
7,000
90,000
35,000
1,000
367
3,500
132,000 132,000 4,083 4,083
(c) 367
(a) 1,000
(b) 3,500
(c) 367
(a) 1,000
(b) 3,500 3,500
120,583
22,633 22,633
35,000 35,000 120,000120,000
Total the Income Statement and the Balance Sheet sections.
5-31
The Accounting Cycle
Step 1
Analyze
transactions
Step 2
Journalize the
data about
transactions
Step 7
Record
closing
entries
Step 3
Post the
data about
transactions
Step 4
Prepare
a
worksheet
Step 5
Prepare
financial
statements
Step 6
Record
adjusting
entriesStep 8
Prepare a
postclosing
trial balance
Step 9
Interpret
the financial
information
Step 5
Prepare
financial
statements
5-32
JT’s Consulting Services
Income Statement
Month Ended December 31, 2010
Revenue
Fees Income $35,000
Expenses
Salaries Expense $7,000
Utilities 500
Supplies Expense 1,000
Rent Expense 3,500
Depreciation Expense - Equipment 367
Total Expenses $12,367
Net Income for the Month $22,633
Objective 4 Prepare financial statements from
the worksheet
5-33
JT’s Consulting Services
Statement of Owner’s Equity
Month Ended December 31, 2010
Jason Taylor, Capital, December 1, 2010 $ 90,000
Net Income for December $22,633
Less Withdrawals for December 4,000
Increase in Capital 18,633
Jason Taylor, Capital, December 31, 2010 $108,633
5-34
The balance sheet in Chapter 4 was prepared using the
account form.
JT’s Consulting Services
Balance Sheet
December 31, 2010
Assets
Cash $83,500.00
Accounts Receivable 5,000.00
Supplies 2,000.00
Prepaid Rent 3,500.00
Equipment 22,000.00
Total Assets $ 115,633.00
Liabilities
Accounts Payable $ 7,000.00
Owner’s Equity
Jason Taylor, Capital 108,633.00
Total Liabilities and Owner’s Equity $ 115,633.00
5-35
JT’s Consulting Services
Balance Sheet
Month Ended December 31, 2010
Assets
Cash $83,500
Accounts Receivable 5,000
Supplies 2,000
Prepaid Rent 3,500
Equipment 22,000
Less Accumulated Depreciation 367 21,633
Total Assets $115,633
Liabilities and Owner’s Equity
Liabilities
Accounts Payable $ 7,000
Owner’s Equity
Jason Taylor, Capital 108,633
Total Liabilities and Owner’s Equity $115,633
5-36
A financial statement
A permanent part of the accounting record
It is only a tool.
The worksheet is NOT
Objective 5 Journalize and post the
adjusting entries
5-37
The Accounting Cycle
Step 1
Analyze
transactions
Step 2
Journalize the
data about
transactions
Step 7
Record
closing
entries
Step 3
Post the
data about
transactions
Step 4
Prepare
a
worksheet
Step 5
Prepare
financial
statements
Step 6
Record
adjusting
entriesStep 8
Prepare a
postclosing
trial balance
Step 9
Interpret
the financial
information
Step 6
Record
adjusting
entries
5-38
(a) Adjustment for supplies used
(b) Adjustment for expired rent
(c) Adjustment for depreciation
ANSWER:
What adjustments must JT’s
Consulting Services record for
the month?
QUESTION:
5-39
GENERAL JOURNAL PAGE 3
POST.
DATE DESCRIPTION REF . DEBIT CREDIT
2010 Adjusting Entries
Dec. 31 Supplies Expense 517 1000.00
Supplies 121 1000.00
31 Rent Expense 520 3,500.00
Prepaid Rent 137 3,500.00
31 Depr. Expense–Equipment 523 367.00
Accum. Depr.–Equipment 142 367.00
ACCOUNT Supplies Expense ACCOUNT NO. 517
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
2010
Dec. 31 Adjusting J3 1000.00 1000.00
5-40
Thank Youfor using
College Accounting, 12th Edition
Price • Haddock • Farina
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