Kanwal and Co

Trial balance Solution

as on June 30, 2005 Adjusting Entries
s. No Account Title Dr Cr Date
1 cash 600,000 30/6
2 Accounts receivable 80,000
3 Prepaid Rent 88,000 30/6
4 unexpired insurance 50,000
5 supplies 22,000 30/6
6 Machinery 980,000
7 Building 1,120,000 30/6
8 Grooming Services Revenues 890,000
9 Rent Exp 36,000 30/6
10 Salareis Exp 60,000
11 Insurance Exp 25,000 30/6
12 Electricity Exp 32,000
13 Telephone and internet Exp 27,000 30/6
14 unearned Revenues 250,000
15 Loan payable (HBL) 1,600,000 30/6
16 Kanwal's capital 380,000

3,120,000 3,120,000
1
2
3
4
5
6
7
8
Additional Informatin
Prepaid rent was paid on January 31st for a total of 5 months
unexpired Insuarnce expired by 60%
supplies expired by 60%
useful life of machinery is 17 years, with salvage value of Rs 30000
useful life of building is 60 years with salvage value of Rs 60,000
Salareis for the month of June still not recorded or paid were Rs 10000
Unearned revenues earned were 75%
Interst on loan payable is due@ 5%

Required
Please pass adjusting entries
please prepare required ledgers
please prepare adjusted Trial balance
please pass closing entries
please prepare income summary ledger
please prepare post close trial balance.
 Kanwal and Co
Adjusted Trial balance
as on June 30, 2005
particulars Dr Cr s. No Account Title
Rent Expeneses 88,000 1 cash
Prepaid Rent 88,000 2 Accounts receivable
Insurance Exp 30,000 3 Interest Exp
Unexpired Insurance 30,000 4 unexpired insurance
supplies Exp 13,200 5 supplies
Supplies 13,200 6 Machinery
Depreciation Exp (Machinery) 55,882 7 Building
Accumulated Dep (Machinery) 55,882 8 Grooming Services Revenues
Depreciation Exp (building) 17,666 9 Rent Exp
Accumulated Dep (Building) 17,666 10 Salareis Exp
Salaries Exp 10,000 11 Insurance Exp
Salaries Payable 10,000 12 Electricity Exp
Unearned Revenues 187,500 13 Telephone and internet Exp
Grooming Services Revenues 187,500 14 unearned Revenues
Interest Exp 80,000 15 Loan payable (HBL)
Interst payable 80,000 16 Kanwal's capital
17 Interest Payable
18 Salaries payable
19 Depreciation Exp (Machinery)
20 Depreciation Exp (Building)
21 Accumulated Dep (Machinery)
22 Accumulated Dep (Building)
23 Supplies Exp
wal and Co
d Trial balance
une 30, 2005
Dr Cr
600,000
80,000
80,000
20,000
8,800
980,000
1,120,000
1,077,500
124,000
70,000
55,000
32,000
27,000
62,500
1,600,000
380,000
80,000
10,000
55,882
17666
55,882
17,666
13200
3,283,548 3,283,548