Adjustment Entries:

(1) Supplies on hand at June 30 are 600 -->

used = 2,000 - 600 = 1,400
631 SUPPLIES EXPENSES 1,400
126 SUPPLIES 1,400

(2) A utility bill for 150 has not been recorded &
will not be paid until next month --> accrued expense
732 UTILITIES EXPENSE 150
244 UTILITIES PAYABLE 150

(3) The insurance policy is for a year -->

for June = 1/12 of 3,000 = 250
722 INSURANCE EXPENSE 250
130 PREPAID INSURANCE 250

(4) $2,500 of unearned service revenue has been

earned at the end of the month
209 UNEARNED SERVICE REVENUE 2,500
400 SERVICE REVENUE 2,500

(5) Salaries of $2,000 are accrued at June 30 --> payable

726 SALARIES EXPENSE 2,000
212 SALARIES PAYABLE 2,000

(6) Depreciation expense of office equipment = 250

711 DEPRECIATION EXPENSE 250
158 ACCU. DEPR.--OFFICE EQUIPMENT 250

(7) Invoice representing $1,000 of service performed

during the month have not been recorded as of
June 30 --> accrued revenue
112 ACCOUNT RECEIVABLE 1,000
400 SERVICE REVENUE 1,000
7,550 7,550
Cash 101 Supplies Expense
Date Description Ref. Debit Credit Balance Date
June 30 Balance v 7,150 June 30
Adjustment J3 7,150

Account Receivable 112 Depreciation Expense

Date Description Ref. Debit Credit Balance Date
June 30 Balance v 6,000 June 30
Adjustment J3-7 1,000 7,000

Supplies 126 Insurance Expense

Date Description Ref. Debit Credit Balance Date
June 30 Balance v 2,000 June 30
Adjustment J3-1 1,400 600

Prepaid Insurance 130 Salaries Expense

Date Description Ref. Debit Credit Balance Date
June 30 Balance 3,000 June 30
Adjustment J3-3 250 2,750

Office Equipment 157 Rent Expense

Date Description Ref. Debit Credit Balance Date
June 30 Balance 15,000 June 30
Adjustment J3 15,000

Accumulated Depreciation--Office Equipment 158 Utilities Expense

Date Description Ref. Debit Credit Balance Date
June 30 Balance June 30
Adjustment J3-6 250 250

(1) Supplies on hand at June 30 are 600 -->

used = 2,000 - 600 = 1,400
631 SUPPLIES EXPENSES 1,400
126 SUPPLIES 1,400
(2) A utility bill for 150 has not been recorded &
will not be paid until next month --> accrued expense
732 UTILITIES EXPENSE 150
244 UTILITIES PAYABLE 150
(3) The insurance policy is for a year -->
for June = 1/12 of 3,000 = 250
722 INSURANCE EXPENSE 250
130 PREPAID INSURANCE 250
(4) $2,500 of unearned service revenue has been
earned at the end of the month
209 UNEARNED SERVICE R 2,500
400 SERVICE REVENUE 2,500

(5) Salaries of $2,000 are accrued at June 30 --> payable

726 SALARIES EXPENSE 2,000
212 SALARIES PAYABLE 2,000

(6) Depreciation expense of office equipment = 250

711 DEPRECIATION EXPEN 250
158 ACCU. DEPR.--OFFICE EQUIPM 250
during the month have not been recorded as of
June 30 --> accrued revenue
112 ACCOUNT RECEIVABLE 1,000
400 SERVICE REVENUE 1,000
Supplies Expense 631 Account Payable
Description Ref. Debit Credit Balance Date Description Ref.
Balance v June 30 Balance
Adjustment J3-1 1,400 1,400 Adjustment J3

Depreciation Expense 711 Unearned Service Revenue

Description Ref. Debit Credit Balance Date Description Ref.
Balance June 30 Balance
Adjustment J3-6 250 250 Adjustment J3-4

Insurance Expense 722 Salaries Payable

Description Ref. Debit Credit Balance Date Description Ref.
Balance June 30 Balance
Adjustment J3-3 250 250 Adjustment J3-5

Salaries Expense 726 Utilities Payable

Description Ref. Debit Credit Balance Date Description Ref.
Balance 4,000 June 30 Balance
Adjustment J3-5 2,000 6,000 Adjustment J3-2

Rent Expense 729 Share Capital

Description Ref. Debit Credit Balance Date Description Ref.
Balance 1,000 June 30 Balance
Adjustment J3 1,000 Adjustment J3

Utilities Expense 732 Service Revenue

Description Ref. Debit Credit Balance Date Description Ref.
Balance June 30 Balance
Adjustment J3-2 150 150 Adjustment J3-4
Adjustment J3-7
 201 MASASI COMPANY, INC.
Debit Credit Balance ADJUSTED TRIAL BALANCE
4,500 As at June 30, 2011
4,500 No. Name Debit
101 Cash 7,150
112 Account Receivable 7,000
209 126 Supplies 600
Debit Credit Balance 130 Prepaid Insurance 2,750
4,000 157 Office Equipment 15,000
2,500 1,500 158 Accumulated Depr.-Office Equipment
201 Accounts Payable
209 Unearned Service Revenue
212 212 Salaries Payable
Debit Credit Balance 244 Utilities Payable
311 Share Capital--Ordinary
2,000 2,000 400 Service Revenue
631 Supplies Expense 1,400
711 Depreciation Expense 250
244 722 Insurance Expense 250
Debit Credit Balance 726 Salaries Expense 6,000
729 Rent Expense 1,000
150 150 732 Utilities Expense 150
Total 41,550

311
Debit Credit Balance
21,750
21,750

400
Debit Credit Balance
7,900
2,500 10,400
1,000 11,400
CE

Credit

250
4,500
1,500
2,000
150
21,750
11,400

41,550
 MASASI COMPANY, INC.
WORKSHEET
As at June 30, 2011
Account Trial Balance Adjustment Adjusted Trial Bal.
No. Name Debit Credit Debit Credit Debit
101 Cash 7,150 7,150
112 Account Receivable 6,000 7) 1,000 7,000
126 Supplies 2,000 1) 1,400 600
130 Prepaid Insurance 3,000 3) 250 2,750
157 Office Equipment 15,000 15,000
158 Accumulated Depr.-Office Equipment 6) 250
201 Accounts Payable 4,500
209 Unearned Service Revenue 4,000 4) 2,500
212 Salaries Payable 5) 2,000
244 Utilities Payable 2) 150
311 Share Capital--Ordinary 21,750
400 Service Revenue 7,900 4) 2,500
7) 1,000
631 Supplies Expense 1) 1,400 1,400
711 Depreciation Expense 6) 250 250
722 Insurance Expense 3) 250 250
726 Salaries Expense 4,000 5) 2,000 6,000
729 Rent Expense 1,000 1,000
732 Utilities Expense 2) 150 150
Total 38,150 38,150 7,550 7,550 41,550
Income Summary --> R/E
Total
 MASASI COMPANY, INC
STATEMENT OF FINANCIAL PO
As at June 30, 2011
Adjusted Trial Bal. Income Statement Balance Sheet
Credit Debit Credit Debit Credit
7,150 101
7,000 112
600 126
2,750 130
15,000 157
250 250 158
4,500 4,500
1,500 1,500
2,000 2,000
150 150 201
21,750 21,750 209
11,400 11,400 212
244
1,400
250
250 311
6,000 312
1,000
150
41,550 9,050 11,400 32,500 30,150
2,350 2,350
11,400 11,400 32,500 MASASI COMPANY, INC
STATEMENT OF INCOM
For the period ended at June
Revenues:

Expenses:

Profit (Loss)
 MASASI COMPANY, INC.
STATEMENT OF FINANCIAL POSITION
As at June 30, 2011

Assets:
Cash 7,150
Account Receivable 7,000
Supplies 600
Prepaid Insurance 2,750
Office Equipment 15,000
Accumulated Depr.-Office Equipment 250 14,750
TOTAL ASSETS 32,250

Liabilities:
Accounts Payable 4,500
Unearned Service Revenue 1,500
Salaries Payable 2,000
Utilities Payable 150
Total Liabilities: 8,150
Equities:
Share Capital--Ordinary 21,750
Retained Earning 2,350
Total Equities: 24,100
TOTAL LIABILITIED & EQUITIES 32,250

MASASI COMPANY, INC.

STATEMENT OF INCOME
For the period ended at June 30, 2011
Revenues:
Service Revenue 11,400
Other Revenues
Total Revenues 11,400
Expenses:
Supplies Expense 1,400
Depreciation Expense 250
Insurance Expense 250
Salaries Expense 6,000
Rent Expense 1,000
Utilities Expense 150
Total expenses 9,050
Profit (Loss) 2,350
 MASASI COMPANY, INC.
TRIAL BALANCE
As at June 30, 2011
No. Name Debit Credit
101 Cash 7,150
112 Account Receivable 6,000
126 Supplies 2,000
130 Prepaid Insurance 3,000
157 Office Equipment 15,000
158 Accumulated Depr.-Office Equipment
201 Accounts Payable 4,500
209 Unearned Service Revenue 4,000
212 Salaries Payable
244 Utilities Payable
311 Share Capital--Ordinary 21,750
400 Service Revenue 7,900
631 Supplies Expense
711 Depreciation Expense
722 Insurance Expense
726 Salaries Expense 4,000
729 Rent Expense 1,000
732 Utilities Expense
Total 38,150 38,150

Adjustment Entries:
(1) Supplies on hand at June 30 are 600 --> used
631 SUPPLIES EXPENSES 1,400
126 SUPPLIES 1,400

(2) A utility bill for 150 has not been recorded &
732 UTILITIES EXPENSE 150
244 UTILITIES PAYABLE 150
(3) The insurance policy is for a year --> for June
= 1/12 of 3,000 = 250
722 INSURANCE EXPENSE 250
130 PREPAID INSURANCE 250

(4) $2,500 of unearned service revenue has

been earned at the end of the month
209 UNEARNED SERVICE REVENUE 2,500
400 SERVICE REVENUE 2,500

(5) Salaries of $2,000 are accrued at June 30 --> payable

726 SALARIES EXPENSE 2,000
 212 SALARIES PAYABLE 2,000

(6) Depreciation expense of office equipment = 250

711 DEPRECIATION EXPENSE 250
158 ACCU. DEPR.--OFFICE EQUIPMENT 250

(7) Invoice representing $1,000 of service

performed during the month have not been
recorded as of June 30 --> accrued revenue
112 ACCOUNT RECEIVABLE 1,000
400 SERVICE REVENUE 1,000
7,550 7,550