an introduction. has eight columns new columns are for adjustments adjustments columns come right...
TRANSCRIPT
Eight Column Worksheet
An introduction
Has eight columns New columns are for adjustments Adjustments columns come right after trial
balance and before income statement Calculate the amount of the adjustment
before recording on the worksheet
Eight Column Worksheet
AccountsDR CR DR CR DR CR DR CR
Bank 1800Accounts Receivable 19500Supplies 1000Prepaid Insurance 1750Equipment 22000Automobile 21000Accounts Payable 4360P. Tang, Capital 54040P. Tang, Drawings 15000Fees Earned 60300Car Expense 3800General Expense 2950Miscellaneous Expense 700Rent Expense 7200Wages Expense 22000
118700 118700
Trial Balance Income Statement Balance Sheet
P. Tang and Company Work Sheet For the year ended December 31, 2009
Adjustments
Adjusting for Supplies The amount of the supplies is $1000 on the
trial balance The amount of supplies on hand is $700. The amount of the supplies used is Supplies
– Supplies still on hand Amount of the adjustment is $1000 - $700
or $300
The amount of Prepaid Insurance on the trial balance is $1750
The amount of Insurance that has not expired and is still Prepaid is $800
The amount of the Insurance Expense is $1750 - $800 or $950
Adjusting for Insurance
There is two late arriving invoices for: Car Expense $75 General Expense $100 Expense are both debits with a single credit
to Accounts Payable for $175
Late Arriving Invoices
Once you have calculated all of the adjustments, you are ready to complete the worksheet
The difference from what we have done before is the Adjustments section
Completing the rest of the worksheet is the same as we have already learned.
Putting it together
AccountsDR CR DR CR DR CR DR CR
Bank 1800Accounts Receivable 19500Supplies 1000 300Prepaid Insurance 1750Equipment 22000Automobile 21000Accounts Payable 4360P. Tang, Capital 54040P. Tang, Drawings 15000Fees Earned 60300Car Expense 3800General Expense 2950Miscellaneous Expense 700Rent Expense 7200Wages Expense 22000
118700 118700Supplies Expense 300
Trial Balance Income Statement Balance Sheet
P. Tang and Company Work Sheet For the year ended December 31, 2009
Adjustments
Recording Supplies Expense
AccountsDR CR DR CR DR CR DR CR
Bank 1800Accounts Receivable 19500Supplies 1000 300Prepaid Insurance 1750 950Equipment 22000Automobile 21000Accounts Payable 4360P. Tang, Capital 54040P. Tang, Drawings 15000Fees Earned 60300Car Expense 3800General Expense 2950Miscellaneous Expense 700Rent Expense 7200Wages Expense 22000
118700 118700Supplies Expense 300Insurance Expense 950
Trial Balance Income Statement Balance Sheet
P. Tang and Company Work Sheet For the year ended December 31, 2009
Adjustments
Recording Insurance Expense
AccountsDR CR DR CR DR CR DR CR
Bank 1800Accounts Receivable 19500Supplies 1000 300Prepaid Insurance 1750 950Equipment 22000Automobile 21000Accounts Payable 4360 175P. Tang, Capital 54040P. Tang, Drawings 15000Fees Earned 60300Car Expense 3800 75General Expense 2950 100Miscellaneous Expense 700Rent Expense 7200Wages Expense 22000
118700 118700Supplies Expense 300Insurance Expense 950
Trial Balance Income Statement Balance Sheet
P. Tang and Company Work Sheet For the year ended December 31, 2009
Adjustments
Recording Late Arriving Invoices
AccountsDR CR DR CR DR CR DR CR
Bank 1800Accounts Receivable 19500Supplies 1000 300Prepaid Insurance 1750 950Equipment 22000Automobile 21000Accounts Payable 4360 175P. Tang, Capital 54040P. Tang, Drawings 15000Fees Earned 60300Car Expense 3800 75General Expense 2950 100Miscellaneous Expense 700Rent Expense 7200Wages Expense 22000
118700 118700Supplies Expense 300Insurance Expense 950
1425 1425
Trial Balance Income Statement Balance Sheet
P. Tang and Company Work Sheet For the year ended December 31, 2009
Adjustments
Totaling the Adjustments Columns
AccountsDR CR DR CR DR CR DR CR
Bank 1800 1800Accounts Receivable 19500 19500Supplies 1000 300 700Prepaid Insurance 1750 950 800Equipment 22000 22000Automobile 21000 21000Accounts Payable 4360 175 4535P. Tang, Capital 54040 54040P. Tang, Drawings 15000 15000Fees Earned 60300 60300Car Expense 3800 75 3875General Expense 2950 100 3050Miscellaneous Expense 700 700Rent Expense 7200 7200Wages Expense 22000 22000
118700 118700Supplies Expense 300 300Insurance Expense 950 950
1425 1425 38075 60300 80800 58575
Trial Balance Income Statement Balance Sheet
P. Tang and Company Work Sheet For the year ended December 31, 2009
Adjustments
Extending the Columns—add like and subtract unlike
AccountsDR CR DR CR DR CR DR CR
Bank 1800 1800Accounts Receivable 19500 19500Supplies 1000 300 700Prepaid Insurance 1750 950 800Equipment 22000 22000Automobile 21000 21000Accounts Payable 4360 175 4535P. Tang, Capital 54040 54040P. Tang, Drawings 15000 15000Fees Earned 60300 60300Car Expense 3800 75 3875General Expense 2950 100 3050Miscellaneous Expense 700 700Rent Expense 7200 7200Wages Expense 22000 22000
118700 118700Supplies Expense 300 300Insurance Expense 950 950
1425 1425 38075 60300 80800 58575Net Income 22225 22225
Trial Balance Income Statement Balance Sheet
P. Tang and Company Work Sheet For the year ended December 31, 2009
Adjustments
Determine Net Income or Net Loss
AccountsDR CR DR CR DR CR DR CR
Bank 1800 1800Accounts Receivable 19500 19500Supplies 1000 300 700Prepaid Insurance 1750 950 800Equipment 22000 22000Automobile 21000 21000Accounts Payable 4360 175 4535P. Tang, Capital 54040 54040P. Tang, Drawings 15000 15000Fees Earned 60300 60300Car Expense 3800 75 3875General Expense 2950 100 3050Miscellaneous Expense 700 700Rent Expense 7200 7200Wages Expense 22000 22000
118700 118700Supplies Expense 300 300Insurance Expense 950 950
1425 1425 38075 60300 80800 58575Net Income 22225 22225
60300 60300 80800 80800
Trial Balance Income Statement Balance Sheet
P. Tang and Company Work Sheet For the year ended December 31, 2009
Adjustments
Balance and Rule the Worksheet