Instructions

Using the information from the Pre-Closing Trial Balance for Tom's Plastering, do the adjusting entries and closing entries for
year ending December 31st 2022

1. Journalize the adjustments below (don't bother with P.R.)

2. Journalize the closing entries (don't bother with P.R.)
EXPLANATIONS ARE REQUIRED!

The following information is for the company of

Tom's Plastering
for the YEAR ending December 31, 2022

1 Late arriving bills pertaining to 2022 were:

a) Telephone charges $56.20

b) Miscellaneous expense $26.85
c) Truck expense $563.85

2 Office supplies on hand on December 31st 2022 were valued at $360

3 Unexpired insurance on December 31st was calculated as $510.95

4 Depreciation is calculated using the straight line method. All assets were on hand for the entire
year.
a) Equipment cost $9,500 and was expected to last for 10 years. It was estimated to be worth
$1500 at the end of that time.
b) The truck cost $19,500 and was expected to last 5 years. It was estimated that it would be worth $3,500 at the end of that time

5 The small tools at Dec 31 are valued at $350. The tools represented by the difference between
the $350 figure and the trial balance figure have been lost, stolen or used up.

6 Of the $25,369.20 shown on the trial balance under Materials used (expense), $2,850 is still on
hand and unused (and should be the closing of the Materials asset).

725028597.xlsx
02/05/2024 J. Boulton
Trial Balance - December 31st 2022- Tom's Plastering

Accounts Debits Credits

Bank $1,412.01
Accounts Receivable $7,545.00
Supplies $1,416.70
Small Tools $1,903.00
Prepaid Insurance $2,107.80
Materials (asset) $4,000.00
Equipment $9,500.00
Accumulated Depreciation: Equipment 3200.00
Truck $19,500.00
Accumulated Depreciation-Truck 8000.00
A/P 2407.35
HST Payable 702.00
HST Recoverable $480.00
Bank Loan 10000.00
T. Michaud, Capital 21510.28
T. Michaud, Drawings $35,534.00
Fees Earned 120365.00
Bank Interest Charges $1,325.15
Materials used (expense) $25,369.30
Miscellaneous expense $756.32
Rent Expense $6,000.00
Telephone expense $864.32
Truck expense $8,325.40
Utilities expense $4,563.26
Wages expense $35,582.47
$166,184.73 $ 166,184.63
 Tom's Plastering
General Journal
J10

Date
Particulars P.R. Debit Credit
2022

ADJUSTING ENTRIES
Dec 31 Telephone Expense 56.20
Miscellaneous expense 26.85
Truck exepense 563.85
Accounts Payabale 646.90
to adjust for late bills

31 Supplies expense 1,056.70

Supplies 1,056.70
to adjust for supplies used

31 Insurance expense 1,596.85

Prepaid Insurance 1,596.85
to adjust for insurance that has expired

31 Depreciation expense 800.00

Accumulated Depreciation-Equipment 800.00
to adjust for depreciation on equipment

31 Depreciation expense 3,200.00

Accumulated depreciation-Truck 3,200.00
to adjust for depreciation on truck

31 Small Tool Expense 1,553.00

Small Tools 1,553.00
to adjust for small tools used

31 Materials used (expense) 1,150.00

Material (asset) 1,150.00
to adjust for small tools used

CLOSING ENTRIES
Dec 31 Fees Earned 120365
Income Summary 120,365.00
to close revenue
31 Income Summary 92,789.67
Bank Interest Charges 1,325.15
Materials used (expense) 26,519.30
Miscellaneous expense 783.17
Rent Expense 6,000.00
Telephone expense 920.52
Truck expense 8,889.25
Utilities expense 4,563.26
Wages expense 35,582.47
Supplies expense 1,056.70
Insurance expense 1,596.85
Depreciation expense 4,000.00
Accounts Debits Credits
Bank 1,412
Accounts Receivable 7,545
Materials 2,850
Supplies 360
Small Tools 350
Prepaid Insurance 511
Equipment 9,500
Accumulated Depreciation: Equipment 4,000
Truck 19,500
Accumulated Depreciation-Truck 11,200
A/P 3,054
HST Payable 702
HST Recoverable 480
Bank Loan 10,000
T. Michaud, Capital 13,552
42,508 42,508
Cap stock reconciliation:

Open cap 21510.28 credit

Open draw 35534 debit

Pre income 37578.78 credit

Adj 10,003.45 debit 27575.33 Net income

Closing ca -13551.61 credit