Spreadsheet or Worksheet (WS) Example

1. As previously advised, please “view” this exercise in PowerPoint mode so that you can “see” the solution “fly-in” and can learn the PROCEDURE of the WS

2. At the bottom of the WS, you will see the very abbreviated FACTS you will need for the Adustments --- PLEASE consider those & what AJE you would make

FACTS

1. OWE $350 Wages at EOM --- must accrue Salary Expense and Salary Payable

2. Supplies were $??? Amount and some were used this month and we have $50 left

3. Some of our Prepaid Insurance asset was USED up this month – must accrue Insurance Expense and reduce our Prepaid ASSET

4. Our office equipment went down in value and must be depreciated using Depreciation Expense and our Contra ASSET --- A/D

WS “Reminders”

1. The first 2 columns are the Trial Balance (TB)2. The next 2 columns are where the AJE amounts are

entered (may need to add ACCOUNTS as needed at the bottom of WS)

3. The next 2 columns are the ADDED or SUBTRACTED (ADJUSTED) totals --- each row of the TB --- MUST be moved here (even if NO adjustment was made)

4. Then “deal” or extend the Adjusted TB amounts to the IS or Balance Sheet columns as APPROPRIATE

Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet

Acc. # Account Titles Debits Credits Debits Credits Debits Credits Debits Credits Debits Credits

101 Cash $ 1,000.00 $ - $ - $ - $ $ - $ - $ - $ $ -

105 Accounts Receivable $ 300.00 $ - $ - $ - $ $ - $ - $ - $ $ -

110 Office Supplies $ 200.00 $ - $ - $ $ $ - $ - $ - $ $ -

120 Prepaid Rent $ 800.00 $ - $ - $ $ $ - $ - $ - $ $ -

130 Office Equipment $ 3,000.00 $ - $ - $ - $ $ - $ - $ - $ $ -

131 A/ D-Office Equipment $ - $ - $ - $ $ - $ $ - $ - $ - $

200 Accounts Payable $ - $ 100.00 $ - $ - $ - $ $ - $ - $ - $

205 Salaries Payable $ -   $ - $ $ - $ $ - $ - $ - $

215 Notes Payable $ - $ 500.00 $ - $ - $ - $ $ - $ - $ - $

300 Capital (or C/S) $ - $ 2,000.00 $ - $ - $ - $ $ - $ - $ - $

305 Withdrawals (or Dividend) $ 500.00 $ - $ - $ - $ $ - $ - $ - $ $ -

400 Sales Revenue $ - $ 3,900.00 $ - $ - $ - $ $ - $ $ - $ -

510 Salaries Expense $ 700.00 $ - $ $ - $ $ - $ $ - $ - $ -

514 Depreciation Expense $ - $ - $ $ - $ $ - $ $ - $ - $ -

516 Rent Expense $ - $ - $ $ - $ $ - $ $ - $ - $ -

525 Supplies Expense $ - $ - $ $ - $ $ - $ $ - $ - $ -

  Totals $ 6,500.00 $ 6,500.00 $ 1,200.00 $ 1,200.00 $ $ $ $ $ $

  Net Income             $ $ - $ - $

  Totals             $ $ $ $

AJEs: Wages owed $350 Supplies on hand $50 Prepaid Rent expired of $300 Depreciation of $400

350

350

150

150

300

300

400

400

1000

300

50

500

3000

400

100

350

500

2000

500

3900

1050

400

300

150

7250 7250

1000

300

50 500

3000

400

100

350

500

2000

5003900

1050

400

300

150

1900 3900 5350 3350

2000

3900 3900 2000

5350 5350