Client uses Accrual Method of Accounting. 1. Enter the trial balance into an Excel Spreadsheet.
2. Record adjustments through a General ledger. Create adjusting entry journals and T-Bar accounts.
3. Make an adjusting trial balance worksheet including the changes affecting the Balance Sheet and Income Statement.
4. Create a final Income Statement, Balance Sheet, and Statement of Retained Earnings for the month ended.
Adjusted amounts should be linked to their corresponding financial statement. The idea is to make all your changes and adjustments on the trial balance worksheet so that the financial statement will automatically change accordingly.
Adjustments to the Trial Balance at 11/30/20XX1.
Estimated bad debts is one-half of 1 percent of sales
2. Insurance expired for the month of November -$480
3. Interest accrued on notes receivable for the month of November -$725
4. Downtown Cabinet Company purchased 10 computers for $15,000 on a no interest 5 year loan. Record this purchase and one loan payment was paid in the month of November.
5. The accounting department discovered an overpayment of rent in the amount of $1,000
6. Property taxes accrued for the month of November should be at $5,000
7. Income taxes are estimated to be 22% of net income.
Data:
Debit credit
Cash 1140
Notes Receivable 16000
Accounts Receivable 41000
Merchandise Inventory 40000
Prepaid Insurance 960
Furniture and Equipment 67000
Accumulated Dep. - furniture and Equp. 12000
Notes Payable 20000
Accounts Payable 17500
Bonds Payable 30000
Common Stock 50000
Retained Earnings 1/1/2016 16200
Dividends 2000
Sales 400000
Cost of Goods Sold 316000
Sales Salaries Expense 20000
Advertising Expense 2200
Traveling Expense 8000
Salaries, office and general 19000
Telephone and Internet Expense 2600
Rent Expense 4800
Property Tax Expense 3300
Interest Expense 1700
Totals 545700 545700