Another six months have passed and the fiscal year has

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Another six months have passed and the fiscal year has concluded for Precision Computer
Centre. Tony Freedman wants to make the necessary adjustments to his company’s accounts
in order to prepare accurate financial statements at July 31, 2014.Assignment(The worksheet
you require is at the end of the Study Guide with Working Papers.)To prepare the necessary
adjustments, use the trial balance shown on the next page and the information below.Complete
the 10-column worksheet for the 12 months ended July 31, 2014.InventoryTony took inventory
at the end of July and determined that there was $17,400 worth of merchandise left in stock on
July 31.Amortization of Computer EquipmentComputer depreciates at $33 a month—purchased
May 6, 2013.Computer workstations depreciate at $20 per month—purchased July 17,
2013.Shop benches depreciate at $25 per month—purchased November 5, 2013.Amortization of
Office EquipmentOffice equipment depreciates at $10 per month—purchased May 16, 2013.Fax
machine depreciates at $10 per month—purchased November 19, 2013.Remember: If any long-
term asset is purchased in the first 15 days of the month, Freedman will record amortization for
the full month. If an asset is purchased later than the 15th, he will not record amortization in the
month when it was purchased.Additional InformationRent for 6 months, at $400 per month, has
expired.Supplies on hand at year-end amounted to $530.A portion of the insurance paid for in
February has expired. Remember that the entire premium was debited to Prepaid
Insurance.The balance in Unearned Service Revenue (account 2050) was received from a new
customer on June 1, 2014. It represents a prepayment to cover all necessary service on 10
computers for the 12 months ending May 31, 2015.View Solution:
Another six months have passed and the fiscal year has

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