Professional Documents
Culture Documents
3 ch03
3 ch03
Deferrals Accruals
insurance rent
supplies maintenance on
advertising equipment
fixed assets
2005
1 Dec. 31 Supplies Expense 55 1 240 00
2 Supplies 14 1 240 00
3
4
Note:
Note: You
You probably
probably have
have the
the idea
idea of
of
how
how posting
posting flows,
flows, so
so the
the rest
rest of
of
the
the slides
slides will
will omit
omit the
the arrows.
arrows.
Effect
Effect of
of Omitting
Omitting Adjustment
Adjustment
Deferred Revenue
(Unearned Revenue)
NetSolutions
Trial Balance
December 31, 2005
Cash 2 065 00
Accounts Receivable 2 220 00
Supplies
Prepaid Insurance
Three months’ rent, $360,
2 000 00was
Three months’ rent, 2$360,
400 00was
Land received
received on
on December
December 1.
20 000 As
As of
1. 00 of
Office Equipment 1 800 00
Accounts Payable December
December 31, only $120 has
31, only $120 has 900 00
Unearned Rent been
been earned.
earned. 360 00
Megabi, Capital 25 000 00
Megabi, Drawing 4 000 00
Fees Earned 16 340 00
Wages Expense 4 275 00
Rent Expense 1 600 00
Utilities Expense 985 00
Supplies Expense 800 00
Miscellaneous Expense 455 00
42 600 00 42 600 00
7
31 Unearned Rent 23 120 00
8
Rent Revenue 42 120 00
9
10
16
17 31 Depreciation Expense 53 50 00
18 Accumulated Depreciation—
19 Office Equipment 19 50 00
Accumulated Depreciation—
Office Equipment
19 Depreciation Expense 53
Dec. 31 50 Dec. 31 50
NetSolutions’
NetSolutions’ balance
balance sheet
sheet
would
would show
show the
the office
office
equipment
equipment at
at cost,
cost, less
less the
the
accumulated
accumulated depreciation.
depreciation.
Book
value
Effect
Effect of
of Omitting
Omitting Adjustment
Adjustment
Summary
Summary of
of Basic
Basic Adjustments
Adjustments
NetSolutions’ Adjusted Trial
Balance for December 31,
2005
NetSolutions 41
Adjusted Trial Balance
December 31, 2005
Cash 2 065 00
Accounts Receivable 2 720 00
Supplies 760 00
Prepaid Insurance 2 300 00
Land 20 000 00
Office Equipment 1 800 00
Accumulated Depreciation 50 00
Accounts Payable 900 00
Wages Payable 250 00
Unearned Rent 240 00
Megabi, Capital 25 000 00
Megabi, Drawing 4 000 00
Fees Earned 16 840 00
Rent Revenue 120 00
Wages Expense 4 525 00
Rent Expense 1 600 00
Utilities Expense 985 00
Continued
NetSolutions 42
Trial Balance
December 31, 2005 (Continued)
Supplies Expense 2 040 00
Insurance Expense 100 00
Miscellaneous Expense 455 00
43 400 00 43 400 00
The
End!