ACCT 203 Lecture Notes - Lecture 13: Trial Balance, Retained Earnings, Income Statement

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27 Jul 2016

School

George Mason University

Department

Accounting

Course

ACCT 203

Professor

Harley

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Document Summary

Trial balance and adjusted trial balance: print an unadjusted trial balance, review the unadjusted trial balance and prepare adjusting journal entries to correct for any transactions missed or incorrectly recorded. Adjusting prepaids, unearned revenue, depreciation expense, allowance for bad debts, etc are all common items that are captured with adjusting entries: print an adjusted trial balance. Repeat the process again if necessary to capture any issues and record adjusting entries as needed: prepare the closing entries which eliminate the balance in the income statement accounts (ie. revenue and expense accounts) . Temporary accounts so at the end of each period they are. Reversed to zero and the balance goes to income summary. Account which is then closed to retained earings. Therefore, you debit the revenue accounts and credit the expense accounts to get them to go to zero. The difference is a plug to income summary (and also is by definition your net income or loss).

Related Questions

PLEASE answer number 2 (worksheet) I am really struggling with it.

Below is the unadjusted trial balance for Walton Anvils as of December 31, 2016, and the data for the adjustments. There is also an Excel Template for this problem that you may download and use (or you may use your own).

Walton Anvils
Unadjusted Trial Balance
December 31, 2016
	Balance
Account Title	Debt	Credit
Cash	$ 16,900.00
Accounts Receivable	17,500
Prepaid Rent	2,500
Office Supplies	1,900
Equipment	23,000
Accumulated Depreciation - Equipment		$ 7,000.00
Accounts Payable		6,200.00
Salaries Payable
Unearned Revenue		5,600.00
Common Stock		28,000.00
Retained Earnings		1,600.00
Dividends	4,500
Service Revenue		20,800.00
Salaries Expense	2,900
Rent Expense
Depreciation Expense - Equipment
Supplies Expense
Total	$ 69,200.00	$ 69,200.00

Adjustment Data

a. Unearned revenue still unearned at December 31, 2016	$1,800
b. Prepaid rent still in force at December 31, 2016	$2,300
c. Office supplies used	$1,400
d. Depreciation	$380
e. Accrued Salaries Expense at December 31, 2016	$210

Requirements

1.Open T-accounts using the balances in the unadjusted trial balance.

2.Complete the worksheet for the year ended December 31, 2016.

3.Prepare the adjusting entries and post to the T-accounts.

4.Prepare the adjusted trial balance.

5.Prepare the income statement, the statement of retained earnings, and the classified balance sheet in report form.

6.Prepare the closing entries and post to the T-accounts.

7.Prepare a post-closing trial balance.

8.Calculate the current ratio for the company.

brownmammoth184

Prepare adjusting journal entries and an adjusted trialbalance.

Ad MenAdvertising, Inc. Trial Balance November 30, 2012
Account	Debit	Credit
Cash	$ 30,100
Accounts Receivable	22,800
Prepaid Insurance	2,700
Supplies	1,200
Equipment	59,000
Accumulated Depreciation, Equipment		$ 50,000
Accounts Payable		3,100
Salaries Payable
Unearned Service Revenue		2,900
Common Stock		25,000
Retained Earnings		25,300
Dividends	1,000
Service Revenue		13,900
Salaries Expense	3,400
Insurance Expense
Depreciation Expense, Equipment
Utilities Expense
Supplies Expense
Total	$120,200	$120,200

Insurance coverage still remaining at November 30, $700.

Supplies used during the month, $400.

Depreciation for the month, $3,400.

Accrued utilities expense at November 30, $700. (use AccountsPayable as the liability account needed)

Accrued salaries at November 30, $1,000.

Service revenue still unearned at November 30, $1,300.

Part A

Open T-accounts for the accounts listed in the trial balance andinsert their November 30 unadjusted balances. Journalize theadjusting entries and post them to the T-accounts. Reference theposted amounts by letter, (a) through (f). Calculate the adjustedbalance in each account.

Part B

Prepare the adjusted trial balance at November 30, 2012.

Part C

How will the company use the adjusted trial balance?

blackminnow717

Alison and Chuck Renny began operations of their furniture repair shop (Lazy Sofa Furniture, Inc.) on January 1, 2014. The annual reporting period ends December 31. The trial balance on January 1, 2015, appears below (amounts are rounded to thousands of dollars to simplify).

Account Titles	Debit		Credit
Cash	$	5
Accounts Receivable		4
Supplies		1
Equipment		6
Accumulated Depreciation			$	0
Software		12
Accumulated Amortization				5
Accounts Payable				7
Notes Payable (long-term)				0
Salaries and Wages Payable				0
Interest Payable				0
Income Tax Payable				0
Unearned Revenue				0
Common Stock				12
Retained Earnings				4
Service Revenue				0
Supplies Expense		0
Depreciation Expense		0
Salaries and Wages Expense		0
Amortization Expense		0
Interest Expense		0
Income Tax Expense		0

Totals	$	28	$	28

Transactions during 2015 (summarized in thousands of dollars) follow:
1.	Borrowed $26 cash on July 1, 2015, signing a six-month note payable.
2.	Purchased equipment for $23 cash on July 1, 2015.
3.	Issued additional shares of common stock for $6.
4.	Earned revenues for 2015 in the amount of $68, including $7 on credit and $61 received in cash.
5.	Recognized salaries and wages expenses for 2015 of $40, paid in cash.
6.	Purchased additional equipment, $2 cash.
7.	Collected accounts receivable, $9.
8.	Paid accounts payable, $12.
9.	Purchased on account supplies for future use, $8.
10.	Received a $5 cash deposit on work to start January 15, 2016.

Data for adjusting journal entries:

11.	Amortization for 2015, $5.
12.	Supplies of $6 were counted on December 31, 2015.
13.	Depreciation for 2015, $3.
14.	Accrued interest on notes payable of $1.
15.	Wages earned since the December 24 payroll not yet paid, $4.
.	16.Income tax for 2015 was $2 and will be paid in 2016. Q1 Record journal entries for transactions (1) through (10) Q2Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions 1-10, adjusting entries 11-16, and closing entry Q3Post the journal entries from requirement 2 to T-accounts and prepare an unadjusted trial balance Q4Record the adjusting journal entries (11) through (16) Q5Post the adjusting entries from requirement 4 and prepare an adjusted trial balance Q6Prepare an income statement. and Prepare statement of retained earnings and Prepare balance sheet Q7Prepare the closing journal entry. Q8Post the closing entry from requirement 7 and prepare a post-closing trial balance

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ACCT 203 Lecture Notes - Lecture 13: Trial Balance, Retained Earnings, Income Statement

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