STONED LOEHAND: Adjusted Trial Balance
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The Unadjusted Trial balance for STONED LOEHAND, a sole proprietorship, at year end, December 31, is presented as follows:
Cash $ 8,651.00
Accounts Receivable $ 61,214.00
Inventory $ 3,900.00
Prepaid Insurance $ 3,300.00
Supplies $ 728.00
Store Equipment $ 15,500.00
Accumulated Depreciation - Equipment $ 8,900.00
Land $ 52,027.00
Accounts Payable $ 4,252.00
Unearned Service Fees $ 4,000.00
Capital, at 1/1/2011 $ 106,989.00
Drawing $ 7,500.00
Services Rendered $ 159,237.00
Salaries Expense $ 26,345.00
Advertising Expense $ 46,240.00
Purchases $ 39,739.00
Rent Expense $ 9,860.00
Utilities Expense $ 6,544.00
Peanut Butter Pie Expense $ 1,830.00
Total $ 283,378.00 $ 283,378.00
The data for year-end adjustments on December 31, 2011, are as follows:
Unexpired advertising at December 31, 2011, is $ 14,526.
Insurance expired during the year of $ 2,000.
Unused supplies at December 31, 2011 are $ 360.
Salaries payable at December 31, 2011 are $ 9,850.
Unexpired portion of rent expense at December 31, 2011 is $ 6,400
Earned $ 1,600 of the Unearned Service Fees during the year ending December 31, 2011.
The Utilities Expense account has a deposit of $ 350, which cannot be used until the year 2015. ( yes, the year is 2012)
Annual depreciation expense for the year ending December 31, 2011 is $ 3, 600.
Inventory at December 31, 2011 is $ 7,500.
1. Post the trial balance account, by name and balance to ?T? accounts.
2. Enter the trial balance accounts and account balances on a worksheet and complete the worksheet.
3. On a separate 4 column general journal page, journalize the adjusting entries from the adjustment columns of the worksheet. Prepare these adjusting entries in good form.
4. Post the adjusting entries to the ?T? accounts and balance each ?T? account.
5. On a separate 4 column general journal page, journalize the closing entries from the worksheet. Prepare these closing entries in good form.
6. Post the closing entries to the ?T? accounts and balance each ?T? account.
7. On a separate 4 column paper prepare an income statement from the income statement columns of the worksheet. Prepare this financial statement in good form.
8. On a separate 4 column paper prepare an owner?s equity (capital statement) statement from the appropriate columns of the worksheet. Prepare this financial statement in good form.
9. On a separate 4 column paper prepare a balance sheet from the balance sheet columns of the general journal page. Prepare this financial statement in good form.
10. Prepare a post closing trial balance from the ?T?.
Your tutorial is in Excel. Each adjusting entry is a different color so you can find the matching debit/credit. An adjusted ...
Your tutorial is in Excel. Each adjusting entry is a different color so you can find the matching debit/credit. An adjusted trial balance, closing entry and a post closing trial balance are shown. An income statement, balance sheet, and statement of changes in equity are given, linked to cells in the adjusted trial balance. This is now a template for future problems.
This response is done in excel, showing the debit and credit, but without specific T accounts and formal journal entries on paper.