Chapter 3

Adjusting The Account

By :
Yuliana Jufari ( 125140329 )
Aldi Adrian ( 125140336 )
Devin Jimie ( 125140340 )
Cicilia Crusita ( 125140341 )
Werry Franciko ( 125140359 )
Transactions General Journal Ledger

Trial Balance

Adjusting
Entries

Post To Ledger

Adjusted Trial
Balance
 The Consistency Principles
The consistency principle states that, once you adopt
an accounting principle or method, continue to follow it
consistently in future accounting periods
 Definition
Adjusting entries are accounting journal entries
that convert a company's accounting records to
the real condition of accounting. An adjusting
journal entry is typically made just prior to
issuing a company's financial statements.
 Types of Adjusting Entries
Accurals:
Accrued revenue.
Accrued expenses.

Defferals:
Prepaid expenses.
Unearned revenue.
 Lazy River Resort, Inc.
Trial Balance
August 31, 2014
Account Name Debit Credit
Cash 19600
Supplies 3300
Prepaid insurance 6000
Land 25000
Buildings 125000
Equipment 26000
Accounts payable 6500
Unearned rent revenue 7400
Mortgage payable 80000
Share capital – ordinary 100000
Dividends 5000
Rent revenue 80000
Maintenance and repairs expense 3600
Salaries and wages expense 51000
Utilities expense 9400
Total 273900 273900
Lazy river resort opened for business on june 1 with eight air-
conditioned units.
Other data:
1. Insurance expires at the rate of $400 per month

2. A count on august 31 shows $900 of supplies on hand

Date Account title & explanation ref Debit Credit

2014 Adjusting Entries

August 31 Supplies expense 631 2400

supplies 126 2400
3. Annual depreciation is 4500 on buildings and 2400 on
equipment

Adjusting entries

4. Unearned rent revenue of 4100 was recognized for service

performed prior to august 31.
Date Account title & explanation Ref Debit Credit
2014 Adjusting entries
August 31 Depreciation expense 711 600
accumulated depreciation-equipment 158 600
 General ledger after adjusting
From Adjusting entries journal,we must posting
every account to the Adjusted General Ledger.
 Lazy River Resort, Inc
General Ledger
August 31, 2014

Cash NO.101
Date Explanation Ref. Debit Credit Balance
31 Adj. Entry J1 19600 19600

Supplies NO. 126

Date Explanation Ref. Debit Credit Balance
Beginning Balance 3300
31 Ajd. Entry J1 2400 900
Prepaid Insurance NO. 130
Date Explanation Ref. Debit Credit Balance
Beginning Balance 6000
31 Adj. entry J1 1200 4800

Land NO. 140

Date Explanation Ref. Debit Credit Balance
31 Beginning Balance 25000

Building NO. 143

Date Explanation Ref. Debit Credit Balance
31 Beginning Balance 125000

Accumulated Depreciation Building NO. 144

Date Explanation Ref. Debit Credit Balance
31 Adj. Entry J1 1125 1125
Buildings NO.143
Date Explanations Ref Debit Credit Balance
31 Beginning Balance 12500

Equipment NO.157
Date Explanations Ref Debit Credit Balance
31 Beginning Balance 26000

Accumulated Depreciation Equipment NO.158

Date Explanations Ref Debit Credit Balance
31 Adj. Entry J1 600 600
 Account Payble NO.201
Date Explanation Ref Debit Credit Balance
31 Beginning Balance 6500

Unearned Service Revenue NO.208

Date Explanation Ref Debit Credit Balance
31 Beginning Balance 7400
31 Adj. Entry J1 4100 3300

Mortgage Payable NO.275

Date Explanation Ref Debit Credit Balance
31 Beginning Balance 80000
Share Capital Ordinary NO.311
Date Explanation Ref Debit Credit Balance
31 Beginning Balance 100000

Dividends NO.332
Date Explanation Ref Debit Credit Ballance
31 Beginning Balance 5000

Rent Revenue NO. 429

Date Explanation Ref Debit Credit Balance
31 Begining Balance 80000
31 Adj. Entry J1 4100 84100
Maintenance and Repair Expense NO.622
Date Explanation Ref Debit Credit Balance
31 Beginning Balance 3600

Supplies Expense NO.631

Date Explanation Ref Debit Credit Balance
31 Adj. Entry J1 2400 2400

Depreciation Expense NO.711

Date Explanation Ref Debit Credit Balance
31 Adj. Entry J1 4500 4500
Insurance Expense NO.722
Date Explanation Ref Debit Credit Balance
31 Adj. Entry J1 1200 1200

Salaries and Wages Expense NO.726

Date Explanation Ref Debit Credit Balance
31 Beginning Balance 51000

Utilities Expense NO.732

 Adjusted Trial Balance
Adjusted Trial Balance is final process in adjusting the
account.
The balances are from the adjusted ledger.

(Company Name)
Adjusted Trial Balance
Month Date,Year

Account Name Debit Credit

 Lazy River Resort,Inc
Adjusted Trial Balance
August 31,2014

Account Name Debit Credit

Cash 19600
Supplies 900
Prepaid Insurance 4800
Land 25000
Buildings 125000
Accumulated Depreciation-Building 1125
Equipment 26000
Accumulated Depreciation-Equipment 600
Accounts Payable 6500
Unearned Rent Revenue 7400
Mortgage Payable 80000
Share Capital-Ordinary 100000
Dividends 5000
Rent Revenue 80000
Maintenance and repair expense 3600
 Account Names Debit Credit
Supplies Expense 2400
Depreciation Expense 1725
Insurance expense 1200
Salaries & Wages expenses 51000
Utilities expense 9400
Total 275625 275625