I am having problems with journalizing.
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Trial Balance Adjusted Trial Balance
Dr. Cr. Dr. Cr.
Cash 37,400 37,400
Supplies 18,600 1,200
Prepaid Insurance 31,900 3,900
Land 80,000 80,000
Equipment 120,000 120,000
Accumulated Depreciation 36,200 43,000
Accounts Payable 14,600 14,600
Unearned Admissions Revenue 2,700 1,700
Mortgage Payable 50,000 50,000
N. Y. Berge, Capital 109,700 109,700
N. Y. Berge, Drawing 14,000 14,000
Admissions Revenue 278,500 279,500
Salaries Expense 109,000 109,000
Repair Expense 30,500 30,500
Advertising Expense 9,400 9,400
Utilities Expense 16,900 16,900
Property Taxes Expense 18,000 21,000
Interest Expense 6,000 12,000
Total s 491,700 491,700
Insurance Expense 28,000
Supplies Expense 17,400
Interest Payable 6,000
Depreciation Expense 6,800
Property Taxes Payable 3,000
Totals 507,500 507,500
a. Prepare a complete work sheet.
b. Prepare a classified balance sheet. (Note: $10,000 of the mortgage payable is due
for payment in the next fiscal year.)
c. Journalize the adjusting entries using the work sheet as a basis.
d. Journalize the closing entries using the work sheet as a basis.
e. Prepare a post-closing trial balance.
First of all, do you know how to prepare a worksheet? I have attached a problem that I use in my classes. The students first copy the accounts and balances to the worksheet from the trial balance, then determine what adjusting entries are to be made and make them directly in the adjustments columns on the worksheet - then move over all of the amounts from the trial balance + or - the adjustments to the adjustments columns. Then, once everything is totalled and in balance, you can move over the income statement columns and the balance sheet columns. In the case of the example I have provided you move over the withdrawing account to the balance sheet, as it will be closed directly to owner's equity.
If you can do that part, then you have the numbers necessary to prepare a classified balance sheet. Remember the classified balance sheet is just about the same as a regular balance sheet - there are just more divisions; for the classified balance sheet you generally have a separate breakout for current assets and noncurrent ...
You will find the answer to this puzzling question inside...