Adjusted-Trial-Balance-and-Worksheet

1. LECTURE 8
BY
HINA SAMDANI

2. Company Name
Trail Balance
Date______
Cash………………………… $15,800
Advertising supplies………… 3,190 a. 1,500
Prepaid insurance…………… 1,200 b. 50
Land ……….……………..… 52,000
Building…………………...… 36,000
Tools equipment………….… 6,000
Accounts payable…………… $30,000
Unearned revenue…………… 7,000 d. 400
Common stock….…………… 30,000
Service revenue……………… 50,000 d. 400
Salaries expense……………… 3,000 f. 1200
Rent expense…………………. 3,000
$117,000 $117,000

3. Advertising supplies expense………… a. 1,500
Insurance expense …………………… b. 50
Acc.depreciation- office
Equipment ……………………………. c. 40
Depreciation expense…………………. c . 40
Interest expense……………………….. e. 50
Interest payable……………………….. e. 50
Salaries payable………………………. f. 1,200
3,240 3,240

4. Company Name
Adjusted Trail Balance
Date______
Cash………………………… $15,800
Advertising supplies………… 1,690
Prepaid insurance…………… 1,150
Land ……….……………..… 52,000
Building…………………...… 36,000
Tools equipment………….… 6,000
Accounts payable…………… $30,000
Unearned revenue…………… 7,400
Common stock….…………… 30,000
Service revenue……………… 50,400
Salaries expense……………… 4,200
Rent expense…………………. 3,000

5. Advertising supplies expense………… 1,500
Insurance expense …………………… 50
Acc.depreciation- office
Equipment ……………………………. 40
Depreciation expense…………………. 40
Interest expense……………………….. 50
Interest payable……………………….. 50
Salaries payable………………………. 1,200
120,240 120,240

6. LECTURE 9
BY
HINA SAMDANI

7.  At the end of accounting period accounts are made ready
for the next period; called closing the books.
 TYPES:
1. Temporary accounts: Relate only to given accounting
period.
 All temporary accounts are closed. Include:
 Income statement accounts
 Dividends.
2. Permanent accounts: Relate to one or more future
accounting periods.
 Permanent accounts are not closed.
 Balances are carried forward. Include:
 Balance sheet accounts including retained earnings
and common stock

8. TEMPORARY
NOMINAL
PERMANENT
REAL
All Revenue Accounts
All Expense Accounts
Dividends Equity Accounts
All Liability Accounts
All Asset Accounts

9. Service Revenue 10600
Income Summary 10600
To close service revenue account.
Income Summary 7740
Adv Supplies Expense 1500
Depreciation Expense 40
Insurance Expense 50
Salaries Expense 5200
Rent Expense 900
Interest Expense 50
To close expense account account.

10. Income Summary 2860
Retained Earnings 2860
To close income summary account.
Retained Earnings 500
Dividends 500
To close dividend account.

11. ADV SUPPLIES
EXPENSE
1500 2. 1500
DEPRECIATION
EXPENSE
40 2. 40
SERVICE
REVENUE
1. 10,600 10,000
400
200
10,600 10,600
SALARIES
EXPENSE
5200 2. 5200
RENT EXP
900 2. 900
INSURANCE
EXPENSE
50 2. 50
DIVIDENDS
500 4. 500
RETAINED
EARNINGS
4, 500 0
3. 2,680
2,360
INCOME
SUMMARY
2. 7,740 1. 10,600
3. 2,860
10,600 10,600
INTEREST EXP
50 2. 50
1
3
4
2

12.  Entry to close income summary just gets
reverse i.e. retained earnings are debited
and income summary is credited.
 Rest of the entries remain the same.
Retained Earnings XXX
Income Summary XXX
To close income summary account.