kardan institute of higher education descriptiondrcr cash15,000 a/r10,000 a/p15,000 prepaid...
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KARDAN INSTITUTE OF HIGHER EDUCATION
Description Dr Cr
Cash 15,000
A/R 10,000
A/P 15,000
Prepaid Rent 15,000
Unearned Salaries 15,000
Machinery 50,000
Sales 15,000
Capital 45,000
Adjustments are prepared at the end of year.1. Revenue earned but not received 36,0002. Accrued Rent Expenses 180003. Prepaid rent is for 15 months . Paid on jan1,2010.4. 10,000 revenue is earned out of un-earned salaries revenue..5. Machinery useful life is 24 years and its residual vale is 2000.
KARDAN INSTITUTE OF HIGHER EDUCATION
DESCRIPTION DR CR
CASH 20,000
Prepaid Rent 30,000
Rent expenses 3000
Prepaid Salaries 12,000
Inventory 7000
Machinery 60,000
Account payable 28,000
Un-earned advertisement revenue 22,000
Sales 40,000
Capital 42,000
TOTAL 1,32,000 1,32,000
Trial Balance of ABC & Co For The Period Ended Dec,2010
OTHER RELEVANT INFORMATION
KARDAN INSTITUTE OF HIGHER EDUCATION
1) Prepaid rent is for 2-years and made on january1,2010.
2) Prepaid salaries is for one year, paid on 1st July 2010.
3) Machinery useful life is 15-years.
4) Advertisement revenue is earned 15,000 for current year.
KARDAN INSTITUTE OF HIGHER EDUCATION
Trial Balance Adjustments Adjd.Trial Balance Account Title Debit Credit Cash 24,800 Accounts receivable 2,250 Supplies 700 Prepaid rent 3,000 Furniture 16,500 Accumulated depreciation Accounts payable 13,100 Salary Payable Unearned service revenue 450 Income tax payable Common stock 20,000 Retained earnings 11,250 Dividends 3,200 Service revenue 7,000 Rent expense Salary expense 950 Supplies expense Depreciation expense Utilities expense 400 Income tax expense
Trial Balance For The Period……………
Accrual Accounting and the Financial Statements
5
Information For Adjustments (a) Prepaid rent expired, $1000.
(b) Supplies on hand, $400 (balance before adjustment equals $700).
(c) Depreciation on furniture, $275.
(d) Accrued salary expense, $950.
(e) Accrued service revenue, $250.
(f) Amount of unearned service revenue that has been earned, $150.
(g) Accrued income tax expense, $540.
5
KARDAN INSTITUTE OF HIGHER EDUCATION
DESCRIPTION DR CRCash 50,000
A/R 30,000
A/P 20,000
Pre-paid rent 18,000
Pre-paid Salaries 12,000
Un-earned Advertisement revenue 50,000
Building 80,000
Office supplies 40,000
Capital 100,000
Advertisement Revenue 60,000
TOTAL 2,30,000 2,30,000
1- Accrued Rent Expenses 12,000. 2- Accrued Salaries Revenues 50,000.
Trial Balance For the Period Ended 31ST Dec.2010
Description DR($)
CR($)
Cash 30,000
Inventory 15,000
A/R 10,000
Prepaid Insurance 18,000
Prepaid Salaries 9,000
Building 74,000
Land 100,000
Car 10,000
Unearned Advertisement Revenues 48,000
Unearned Rent Revenue 60,000
A/P 20,000
Capital 138,000
TOTAL 266,000 266,000
Trial Balance Of ABC & Co For the Period Ended 31.Dec 2010
ADJUSTMENT REQUIRED AT YEAR END 31,DEC.2010
KARDAN INSTITUTE OF HIGHER EDUCATION
1) Prepaid insurance is for one year paid on 1st April 2010.2) Prepaid salaries is for one year paid on 1st January 2010.3) Building useful life is 35 years and its residual value is $ 4000.Building is acquired in January 2010.4) Car useful life is 10 years and is purchased in January 2010.5) Unearned Advertisement revenue is received on 31st March 2010
for 2 years.6) Rent revenue of $30,000 is earned out of total unearned rent
revenue.7) Accrued rent Revenue was $15,000 & Accrued Salaries expenses
$ 10,000 for the period .
DESCRIPTION DR CR
Cash 20,000
A/R 15,000
Office Supplies 30,000
Furniture 50,000
Prepaid Rent 20,000
Rent Expenses 5000
Unearned Salaries Revenue
25,000
Salaries Revenue 10,000
Capital 105,000
TOTAL 140,000 140,000
TRIAL BALANCE FOR YEAR ENDED DEC 31,2010
Prepared adjusted Trial Balance at year ended 31st Dec.2010.
1) Closing balance of Office supplies is $ 7000.
2) Useful life of furniture is 24 years and its residual value is $ 2000.
3) Prepaid rent is for one year paid on 1st July 2010.
4) Earned $ 10,000 Salaries Revenue out of Un-earned revenue.
5) Accrued Advertising Expenses are $ 5000.
6) Accrued salaries revenue is $ 7000.