Trial Balance Adjustments

Account Titles Dr Cr Dr
CASH 55,000
ACCOUNTS RECEIVABLE 224,000
ALLOWANCE FOR BAD DEBTS 34,100
MERCHANDISE INVENTORY 50,000
SUPPLIES 23,600
MACHINE 180,000
ACCUMULATED DEPRECIATION - MACHINE 60,000
FURNITURE 60,000
ACCUMULATED DEPRECIATION - FURNITURE 34,000
VEHICLE 450,000
ACCOUNTS PAYABLE 121,000
NOTES PAYABLE 300,000
M. GARCIA, CAPITAL 450,000
M. GARCIA, DRAWING 18,500
SERVICE REVENUE 480,000
PURCHASES 280,000
RENT EXPENSE 48,000
SALARIES EXPENSE 54,000
UTILITIES EXPENSE 36,000
BAD DEBTS EXPENSE 36,000
DEPRECIATION EXPENSE - MACHINE 20,000
DEPRECIATION EXPENSE - FURNITURE 4,000
DEPRECIATION EXPENSE - VEHICLE 17,500
INTEREST EXPENSE 16,000
INTEREST PAYABLE
UNEARNED SERVICE REVENUE 34,000
ACCUMULATED DEPRECIATION - VEHICLE
SUPPLIES EXPENSE 11,600
INCOME SUMMARY - EXPENSE ACCOUNT
INCOME SUMMARY - REVENUE
Adjustments Adjusted Trial Balance Closing Trial balance Income Statement Changes in Equity
Cr Dr Cr Dr Cr Dr Cr Dr
55,000
224,000
36,000 70,100
50,000
11,600 12,000
180,000
20,000 80,000
60,000
4,000 38,000
450,000
121,000
300,000
450,000

34,000 514,000 514,000

280,000
48,000 48,000
54,000 54,000
36,000 36,000
36,000 36,000
20,000 20,000
4,000 4,000
17,500 17,500
16,000 16,000
16,000

17,500

243,100
514,000
Changes in Equity Balance Sheet
Cr Dr Cr
BAD DEBTS EXPENSE
% of collectibility
1 - 90 days 120000 95 114000
91-180 days 72000 80 57600
181-360 days 18000 60 10800
360 days + 14000 40 5600
Total 224,000 188000
Less: Collected -188000
Total Bad Debts 36,000