Accounting Problem. Unadjusted Trial Balance to Adjusted Trial Balance?

The following unadjusted trial balance is for Adams Construction Co. as of the end of its 2005 fiscal year. The June 30, 2004, credit balance of the owner’s capital account was $52,660, and the owner invested $25,000 cash in the company during the 2005 fiscal year. Required 1. Prepare a 10-column work sheet for fiscal year 2005, starting with the unadjusted trial balance and including adjustments based on these additional facts: a. The supplies available at the end of fiscal year 2005 had a cost of $3,200. b. The cost of expired insurance for the fiscal year is $3,900. c. Annual depreciation on equipment is $8,500. d. The June utilities expense of $550 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $550 amount owed needs to be recorded. e. The company’s employees have earned $1,600 of accrued wages at fiscal year-end. f. The rent expense incurred and not yet paid or recorded at fiscal year-end is $200. g. Additional property taxes of $900 have been assessed for this fiscal year but have not been paid or recorded in the accounts. h. The long-term note payable bears interest at 1% per month. The unadjusted Interest Expense account equals the amount paid for the first 11 months of the 2005 fiscal year. The $240 accrued interest for June has not yet been paid or recorded. (Note that the company is required to make a $5,000 payment toward the note payable during the 2006 fiscal year.) 2. Use the work sheet to enter the adjusting and closing entries; then journals them. 3. Prepare the income statement and the statement of owner’s equity for the year ended June 30 and the classified balance sheet at June 30, 2005 4. Analyze the following separate errors and describe how each would affect the 10-column worksheet. Explain whether the error is likely to be discovered in completing the work sheet and, if not, the effect of the error on the financial statements. a. Assume that the adjustment for supplies used consisted of a credit to Supplies for $3,200 and a debit for $3,200 to Supplies Expense. b. When the adjusted trial balance in the work sheet is completed, the $17,500 Cash balance is incorrectly entered in the Credit column. This is the unadjusted trial balance: Cash 17,500 Supplies 8,900 Prepaid insurance 6,200 Equipment 131,000 Accumulated depreciation—Equipment 25,250 Accounts payable 5,800 Interest payable 0 Rent payable 0 Wages payable 0 Property taxes payable 0 Long-term notes payable 24,000 S. Adams, Capital 77,660 S. Adams, Withdrawals 30,000 Construction fees earned 134,000 Depreciation expense—Equipment 0 Wages expense 45,860 Interest expense 2,640 Insurance expense 0 Rent expense 13,200 Supplies expense 0 Property taxes expense 4,600 Repairs expense 2,810 Utilities expense 4,000 Totals 266,701 266,701 I have been working on this for about a week and it is now 2 days past due and I am at a loss... I can't get my head around posting the right debits and credits I keep messing up my Excel worksheet

Written by Keisha in Other - Business & Finance

Better Answer

I hope this helps:
http://www.cliffsnotes.com/study_guide/The-Work-Sheet.topicArticleId-21081,articleId-21025.html

Written by Sandy

Other Answers

I hope this helps:
http://www.cliffsnotes.com/study_guide/The-Work-Sheet.topicArticleId-21081,articleId-21025.html

Written by Sandy

First off, your unadjusted balance should be 266710.
You need to think how to journalize each transaction and the worksheet basically fills itself out
a. If only 3200 in supplies is left, that means you used 5700 during year
Supplies expense 5700
----------------------supplies 5700 (sorry, dont know how to indent on here)
b. Insurance exp 3900
--------prepaid insurance 3900
c. Depreciation expense 8500
--------accumulated depreciation 8500
d. For this one you have to make a utilities payable row in your sheet
Utilities expense 550
--------utilities payable 550
e. Wages expense 1600
-------------wages payable 1600
f. Rent expense 200
----------rent payable 200
g. Property tax expense 900
----------propert tax payable 900
h. Interest expense 240
--------interest payable 240
After adding all of the debits and credits your total adjustments should be 21590
Input all the data into the worksheet, then do your adjusted balance (it should come as as 278700)

for the balance sheet, just use the balances in the accounts that appear on the balance sheet
for the income statement you will use the revs, exps

Written by Stuck On Cantaloupe Island