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Unformatted text preview: UNIT 4 ADJUSTMENTS, WORKSHEET, AND STATEMENTS Adjusting Entries are needed because it is uneconomical to make changes daily to some accounts, and for others, vital information is not known until the end of the account period. When analyzing these September 30 Adjusting Entries, consider the relevant account balances listed in the Trial Balance, the change described in the transaction descriptions, and the relevant Journal Entries on page 8. I. DEBITS AND CREDITS ~ ~R.I CR.. LIABILITIES DR. I CR..- + + OWNER'S EOUITY DR. I CR..- + WITHDRAWAlS EXPENSES ~R'I~' ~R'I CR.. REVENUE DR. I CR..- + II. TRIAL BALANCE Quick Clean Laundry Se:z:vice Trial Balance September 30, 1991 III. ADJUSTING JOURNAL ENTRIES Sample Problem Adjustments- Wednesday, September 30, 1991 ANALYZING TRANSACTIONS Assets Liabilities Owner IS Equity + a. One month of scheduled advertising appeared in the school newspaper. See transaction 2 page 8. Prepaid Advertising I 10 Advertising Expense 10 I b. A count of Laundry SUpplies revealed $5 worth on hand. Laundry Sqpplies I 20 Laun~ 20 ~ly Expense c. Depreciation was taken on $48 of equipment with a useful life of 4 years. AcCt.U1lUlated Depreciation, Laundty ~ipment I 1 Depreciation Expense, Laundry Eq\l:i,pment 1 I Note: Depreciation is accumulated and subtracted from the relevant asset on the Balance Sheet. d. On Friday, October 2nd, Darin would pay his first enployee, who worked Monday, Wednesday and Friday, $15 for the week....
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- Fall '09
- Balance Sheet, Generally Accepted Accounting Principles, Laundry, Darin Jones, Laundry Revenue Capital