HUM 279: Financial & Managerial Accounting

Transcription

1 Chapter 3 HUM 279: Financial & Managerial Accounting Demo 06: Adjusting Entries & Adjusted Trial Balance- Thayer Motel Masud Jahan Department Of Science And Humanities Military Institute Of Science And Technology 2012

2 Thayer Motel The Thayer Motel opened for business on December 1, it s trial balance before adjustment on Dec. 31 is as follows.

3 THAYER MOTEL Unadjusted Trial Balance as at Dec 31, 2008 Account Titles Debit Credit Cash Tk 2500 Tk - Supplies 1,900 Prepaid Taxes 2,400 Accounts Payable 5,300 Unearned Rent 3,600 Notes Payable 35,000 S. Ahmed, Capital 60,000 Rental Revenue 9,200 Advertising Expense 500 Salaries Expense 3,000 Utilities Expense 1,000 Land 55,000 Lodge 30,000 Furniture 16,800 Total /20

4 Let s look on some adjustments In addition to those accounts listed on the trial balance, the chart of accounts for Thayer Motel also contains the following accounts and account numbers: Accumulated Depreciation- Lodge, Accumulated Depreciation- Furniture, Accounts Receivable, Salaries Payable, Depreciation Expense- Lodge. Depreciation Expense- Furniture, Taxes Expense, Supplies Expense. Other data: 1. Taxes expires at the rate of $800 per month, 2. A count of supplies shows $1000 of unused supplies on Dec. 31, 3. Annual depreciation is $2,400 on the lodge and $3,000 on furniture, 4. Unearned rent of $2,500 has been earned, 5. Salaries of $800 are accrued and unpaid at Dec. 31, 6. Invoices representing $1,000 of services performed during the month have not been recorded as of Dec /20

5 Requirements 1. Prepare the adjusted trial balance for Thayer Motel as on Dec 31, Prepare an income statement and an owner s equity statement for the month ended Dec 31, 2008 and a balance sheet for Thayer Motel as at Dec 31, /20

6 1. Taxes expires at the rate of $800 per month, 6/20

7 1. Taxes expires at the rate of $800 per month, GENERAL JOURNAL Page 1 Date Accounts Titles & Explations Debit Credit Dec. 31 Taxes Expenses 800 Pre-paid Taxes 800 To record taxes for the month 7/20

8 2. A count of supplies shows $1000 of unused supplies on Dec. 31, 8/20

9 2. A count of supplies shows $1000 of unused supplies on Dec. 31, GENERAL JOURNAL Page 1 Date Accounts Titles & Explations Debit Credit Dec. 31 Supplies Expense 900 Supplies 900 To record supplies used ($1,900 - $1,000= $900) 9/20

10 3. Annual depreciation is $2,400 on the lodge and $3,000 on furniture, 10/20

11 3. Annual depreciation is $2,400 on the lodge and $3,000 on furniture, GENERAL JOURNAL Page 1 Date Accounts Titles & Explations Debit Credit Dec. 31 Depreciation Expense- Lodge 200 Accumulated Depreciation-Lodge 200 To record monthly depreciation expense (($2,400 /12months)=$200) Dec. 31 Depreciation Expense- Furniture 250 Accumulated Depreciation-Furniture 250 To record monthly depreciation expense (($3,000/12months)=$250) 11/20

12 4. Unearned rent of $2,500 has been earned, 12/20

13 4. Unearned rent of $2.500 has been earned, GENERAL JOURNAL Page 1 Date Accounts Titles & Explations Debit Credit Dec. 31 Unearned rent 2,500 Rental Revenue 2,500 To record rental revenue earned 13/20

14 5. Salaries of $800 are accrued and unpaid at Dec. 31, 14/20

15 5. Salaries of $800 are accrued and unpaid at Dec. 31, GENERAL JOURNAL Page 1 Date Accounts Titles & Explations Debit Credit Dec. 31 Salaries Expense 800 Salaries Payable 800 To record accrued salaries 15/20

16 6. Invoices representing $1,000 of services performed during the month have not been recorded as of Dec /20

17 6. Invoices representing $1,000 of services performed during the month have not been recorded as of Dec. 31. GENERAL JOURNAL Page 1 Date Accounts Titles & Explations Debit Credit Dec. 31 Accounts Receivable 1,000 Rental Revenues 1,000 To record accrued revenues 17/20

18 Now let s make the Adjusted Trial Balance of Thayer Motel as at Dec. 31, /20

19 THAYER MOTEL Adjusted Trial Balance as at Dec 31, 2008 Account Titles Debit Credit Cash BDT 2,500 Supplies (1, ) 1,000 Prepaid Taxes (2, ) 1,600 Accounts Payable BDT 5,300 Unearned Rent (3,600-2,500) 1,100 Notes Payable 35,000 S. Ahmed, Capital 60,000 Rental Revenue (9,200+2,500+1,000) 12,700 Advertising Expense 500 Salaries Expense (3, ) 3,800 Utilities Expense 1,000 Land 55,000 Lodge 30,000 Furniture 16,800 Accumulated Depreciation- Lodge 200 Accumulated Depreciation- Furniture 250 Accounts Receivable 1,000 Salaries Payable 800 Depreciation Expense- Lodge 200 Depreciation Expense- Furniture 250 Taxes Expense 800 Supplies Expense 900 Total BDT 115,350 BDT 115,350 19/20

20 End of Demo 06