Chapter 4 Financial Accounting
- 1. the ing le let yc mp g C Co tin un r4 o cc pt e A ha C c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 2. Learning Objectives 1. 2. 3. 4. 5. 6. 7. Describe the flow of accounting information from the unadjusted trial balance into the adjusted trial balance and financial statements. Prepare financial statements from adjusted account balances. Prepare closing entries. Describe the accounting cycle. Illustrate the accounting cycle for one period. Explain what is meant by the fiscal year and the natural business year. Describe and illustrate the use of working capital and the current ratio in evaluating a company’s financial condition.
- 3. Lear ning Obje ctive Desc infor ribe the ma flo tr rial b w t alancion from of acco bala nce e into t the una unting and d h finan e adjus justed t ed t cial s tatem rial ents. 1 c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 5. FLOW OF ACCOUNTING INFORMATION
- 6. Flow of Accounting Information End-of-Period Spreadsheet (Work Sheet) Unadjusted TB Accounts o Dr Cr Adjustments Adjusted TB Dr Dr Cr Cr Account balances are listed in the Unadjusted Trial Balance columns using the ending balances found in the general ledger. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 7. Flow of Accounting Information End-of-Period Spreadsheet (Work Sheet) Unadjusted TB Accounts o Dr Cr Adjustments Adjusted TB Dr Dr Cr Cr Adjustments are entered here. Two possibilities: Deferrals – Existing balances are changed Accruals – New information is entered c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 8. Flow of Accounting Information End-of-Period Spreadsheet (Work Sheet) Unadjusted TB Accounts Dr Cr Adjustments Adjusted TB Dr Dr Cr Cr o Adjustments are combined with the unadjusted trial balance amounts to provide balances for the Adjusted Trial Balance columns. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 9. Flow of Accounting Information End-of-Period Spreadsheet (Work Sheet) Adjusted TB Accounts o Dr Cr Income State. Dr Cr Balance Sheet Dr Cr Revenue and expense balances in the Adjusted Trial Balance columns are extended to the Income Statement columns. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 10. Flow of Accounting Information End-of-Period Spreadsheet (Work Sheet) Adjusted TB Accounts o Dr Cr Income State. Dr Cr Balance Sheet Dr Cr Asset, liability, and stockholders’ equity balances in the Adjusted Trial Balance columns are extended to the Balance Sheet columns. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 11. Lear ning Obje Prep ctive are f i nan cia a l adjus ted a statemen ccou t nt ba s from lance s. 2 c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 12. Income Statement o The income statement for NetSolutions is prepared directly from the Income Statement or Adjusted Trial Balance columns of the endof-period spreadsheet (work sheet) beginning with fees earned of $16,840. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 13. INCOME STATEMENT to retained earnings statement
- 14. Retained Earnings Statement o The first item normally presented on the retained earnings statement is the balance of the Retained Earnings account at the beginning of the period. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 15. RETAINED EARNINGS STATEMENT from the income statement to the balance sheet
- 16. Balance Sheet o The balance sheet is prepared directly from the Balance Sheet or Adjusted Trial Balance columns of the end-of-period spreadsheet (or work sheet), beginning with Cash of $2,065. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 17. BALANCE SHEET from the retained earnings statement
- 18. Classified Balance Sheet o A classified balance sheet is a balance sheet that was expanded by adding subsections for (1) current assets; (2) property, plant, and equipment; (3) current liabilities; and (4) longterm liabilities. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 19. CURRENT ASSETS Cash and other assets that are expected to be converted into cash, sold, or used up usually within a year or less, through the normal operations of the business, are called current assets. Cash Accounts Receivable Notes Receivable Supplies
- 20. Notes Receivable o Notes receivable are written promises by the customer to pay the amount of the note and possibly interest at an agreed rate. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 21. FIXED ASSETS Property, plant, and equipment (also called fixed assets or plant assets) include assets that depreciate over a period of time. Land is an exception, since it is not subject to depreciation. Equipment Machinery Buildings Land
- 22. CURRENT LIABILITIES Liabilities that will be due within a short time (usually one year or less) and that are to be paid out of current assets are called current liabilities. Accounts payable Wages payable Interest payable Unearned fees
- 23. LONG-TERM LIABILITIES Liabilities not due for a long time (usually more than one year) are called long-term liabilities. Long-term notes payable Mortgage payable Bond payable
- 24. STOCKHOLDERS’ EQUITY Stockholders’ equity is the stockholders’ right to the assets of the business. It is presented on the balance sheet below the liabilities section. Capital stock Retained earnings
- 25. Lear ning Obje ctive Prep are e clo sing ent r i es. 3 c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 26. Closing Entries o Accounts that are relatively permanent from year to year are called permanent accounts or real accounts. These accounts are carried forward from year to year. o Accounts that report amounts for only one period are called temporary accounts or nominal accounts. Temporary accounts are not carried forward because they relate to only one period. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 27. Closing Entries o To report amounts for only one period, temporary accounts should have zero balances at the beginning of the next period. o To achieve this, the revenue and expense account balances are transferred to Income Summary at the end of the period. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 28. Closing Entries o The balance of Income Summary (net income or net loss) is then transferred to the Retained Earnings account. o The balance of the Dividends account is also transferred to the Retained Earnings account. o The entries that transfer these balances are called closing entries. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 29. CLOSING ENTRIES
- 30. Closing Entries o Income Summary is a temporary account that is only used during the closing process. o At the end of the closing process, the Income Summary account will have a zero balance. o Closing entries are recorded in the journal and dated as of the last date of the accounting period. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 35. CLOSING ENTRIES Step 1 Step 2 Step 3 Step 4
- 36. Temporary Account Balances o After the closing entries are posted, all of the temporary accounts have zero balances. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 37. LEDGER
- 38. LEDGER
- 39. LEDGER
- 40. LEDGER
- 41. Post-Closing Trial Balance o A post-closing trial balance is prepared after the closing entries have been posted. The purpose of the post-closing (after closing) trial balance is to verify that the ledger is in balance and ready for the next accounting period. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 43. Lear ning Obje ctive Desc r ibe the a ccou nting cycle . 4 c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 44. Accounting Cycle o The accounting process that begins with analyzing and journalizing transactions and ends with preparing the accounting records for the next period’s transactions is called the accounting cycle. There are ten steps in the accounting cycle. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 45. ACCOUNTING CYCLE
- 47. ACCOUNTING CYCLE From the adjusted trial balance
- 48. Lear ning Obje Illust ctive rate the a cc ou nt ing c ycle fo one peri r o d. 5 c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 50. ACCOUNTING CYCLE
- 51. ACCOUNTING CYCLE
- 56. INCOME STATEMENT
- 58. BALANCE SHEET
- 59. CLOSING ENTRIES
- 61. LEDGER
- 62. LEDGER
- 63. LEDGER
- 64. LEDGER
- 65. Lear ning Obje Expl ctive ai n w year h and at is m eant the n by th atura e fisc l bus al iness year . 6 c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 66. Accounting Period o The annual accounting period adopted by a business is known as its fiscal year. o When a business adopts a fiscal year that ends when business activities have reached the lowest point in its annual operation, such a fiscal year is also called the natural business year. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 69. Lear ning Obje Desc ctive r ibe and work illu in ratio g capit strate t h al a n in ev d t he e u s e of aluat i ng a curre n c om f i nan pany t cial c ’s o n di t i on. 7 c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 70. Working Capital and Current Ratio o The ability to convert assets into cash is called liquidity. o The ability of a business to pay its debts is called solvency. o Working capital is the excess of the current assets of a business over its current liabilities. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 71. Working Capital and Current Ratio o NetSolutions’ working capital at the end of 2013 is $6,355 as computed below. This amount of working capital implies that NetSolutions is able to pay its current liabilities. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 72. Working Capital and Current Ratio o The current ratio is another means of expressing the relationship between current assets and current liabilities. The current ratio is computed by dividing current assets by current liabilities. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 73. Working Capital and Current Ratio o The current ratio for NetSolutions at the end of 2013 is 5.6, computed as follows: c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 74. dix en iod pp -Per A -o f et nd adshe E re Sp c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 75. Unadjusted Trial Balance Account Title 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Cash Accounts Receivable Supplies Prepaid Insurance Land Office Equipment Accumulated Depr. Accounts Payable Wages Payable Unearned Rent Capital Stock Dividends Fees Earned Rent Revenue Wages Expense Rent Expense Depreciation Expense Utilities Expense Supplies Expense Insurance Expense Miscellaneous Exp. Debit Credit Adjusted Trial Balance Adjustments Debit Credit Debit Credit 2,065 2,220 2,000 2,400 20,000 1,800 900 4,000 360 25,000 16,340 4,275 1,600 The unadjusted trial balance is checked for equality. 985 800 455 42,600 42,600 75
- 76. Unadjusted Trial Balance Account Title 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Cash Accounts Receivable Supplies Prepaid Insurance Land Office Equipment Accumulated Depr. Accounts Payable Wages Payable Unearned Rent Capital Stock Dividends Fees Earned Rent Revenue Wages Expense Rent Expense Depreciation Expense Utilities Expense Supplies Expense Insurance Expense Miscellaneous Exp. Debit Credit 2,065 2,220 2,000 2,400 20,000 1,800 Adjustments Debit Credit Adjusted Trial Balance Debit Credit Supplies needs adjusting 900 4,000 360 25,000 16,340 4,275 1,600 985 800 455 42,600 42,600 76
- 77. Unadjusted Trial Balance Account Title 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Cash Accounts Receivable Supplies Prepaid Insurance Land Office Equipment Accumulated Depr. Accounts Payable Wages Payable Unearned Rent Capital Stock Dividends Fees Earned Rent Revenue Wages Expense Rent Expense Depreciation Expense Utilities Expense Supplies Expense Insurance Expense Miscellaneous Exp. Debit Credit Adjustments Debit 2,065 2,220 2,000 2,400 20,000 1,800 Debit Credit (a) 1,240 (a) Cost of supplies on hand at December 31 is $760. 900 4,000 Credit Adjusted Trial Balance 360 25,000 16,340 4,275 1,600 985 800 455 42,600 (a) 1,240 42,600 77
- 78. Unadjusted Trial Balance Account Title 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Cash Accounts Receivable Supplies Prepaid Insurance Land Office Equipment Accumulated Depr. Accounts Payable Wages Payable Unearned Rent Capital Stock Dividends Fees Earned Rent Revenue Wages Expense Rent Expense Depreciation Expense Utilities Expense Supplies Expense Insurance Expense Miscellaneous Exp. Debit Credit Adjustments Debit 2,065 2,220 2,000 2,400 20,000 1,800 Debit Credit (a) 1,240 (b) 200 (b) The insurance expense for December is $200 ($2,400 ÷ 12). 900 4,000 Credit Adjusted Trial Balance 360 25,000 16,340 4,275 1,600 985 800 455 42,600 (a) 1,240 (b) 200 42,600 78
- 79. Unadjusted Trial Balance Account Title 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Cash Accounts Receivable Supplies Prepaid Insurance Land Office Equipment Accumulated Depr. Accounts Payable Wages Payable Unearned Rent Capital Stock Dividends Fees Earned Rent Revenue Wages Expense Rent Expense Depreciation Expense Utilities Expense Supplies Expense Insurance Expense Miscellaneous Exp. Debit Credit Adjusted Trial Balance Adjustments Debit 2,065 2,220 2,000 2,400 20,000 1,800 Credit 360 25,000 (c) 120 16,340 (c) 4,275 1,600 985 800 455 42,600 Credit (a) 1,240 (b) 200 900 4,000 Debit 120 (c) Rent revenue earned during December was $120 ($360 ÷ 3). (a) 1,240 (b) 200 42,600 79
- 80. Unadjusted Trial Balance Account Title 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Cash Accounts Receivable Supplies Prepaid Insurance Land Office Equipment Accumulated Depr. Accounts Payable Wages Payable Unearned Rent Capital Stock Dividends Fees Earned Rent Revenue Wages Expense Rent Expense Depreciation Expense Utilities Expense Supplies Expense Insurance Expense Miscellaneous Exp. Debit Credit 2,065 2,220 2,000 2,400 20,000 1,800 Adjustments Debit (d) 500 Credit 4,000 (c) 120 16,340 (d) (c) 4,275 1,600 985 800 455 42,600 Debit Credit (a) 1,240 (b) 200 900 360 25,000 Adjusted Trial Balance (d) Fees accrued at the end of December, but not recorded, totaled $500. 500 120 (a) 1,240 (b) 200 42,600 80
- 81. Unadjusted Trial Balance Account Title 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Cash Accounts Receivable Supplies Prepaid Insurance Land Office Equipment Accumulated Depr. Accounts Payable Wages Payable Unearned Rent Capital Stock Dividends Fees Earned Rent Revenue Wages Expense Rent Expense Depreciation Expense Utilities Expense Supplies Expense Insurance Expense Miscellaneous Exp. Debit Credit 2,065 2,220 2,000 2,400 20,000 1,800 Adjustments Debit (d) 500 900 4,000 360 25,000 120 Credit Debit Credit (a) 1,240 (b) 200 (e) (d) (c) (e) 985 800 455 42,600 (c) 16,340 4,275 1,600 Adjusted Trial Balance (e) Wages accrued, but 250 not paid, at the end of December totaled $250. 500 120 250 (a) 1,240 (b) 200 42,600 81
- 82. Unadjusted Trial Balance Account Title 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Cash Accounts Receivable Supplies Prepaid Insurance Land Office Equipment Accumulated Depr. Accounts Payable Wages Payable Unearned Rent Capital Stock Dividends Fees Earned Rent Revenue Wages Expense Rent Expense Depreciation Expense Utilities Expense Supplies Expense Insurance Expense Miscellaneous Exp. Debit Credit 2,065 2,220 2,000 2,400 20,000 1,800 Adjustments Debit (d) 500 4,000 (e) Credit 50 (e) 250 (f) Depreciation 500 120 of office equipment is $50 for December. 250 (f) 985 800 455 42,600 120 Debit (a) 1,240 (b) 200 (d) (c) (c) 16,340 4,275 1,600 Credit (f) 900 360 25,000 Adjusted Trial Balance 50 (a) 1,240 (b) 200 42,600 82
- 83. Unadjusted Trial Balance Account Title 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Cash Accounts Receivable Supplies Prepaid Insurance Land Office Equipment Accumulated Depr. Accounts Payable Wages Payable Unearned Rent Capital Stock Dividends Fees Earned Rent Revenue Wages Expense Rent Expense Depreciation Expense Utilities Expense Supplies Expense Insurance Expense Miscellaneous Exp. Debit Credit 2,065 2,220 2,000 2,400 20,000 1,800 Adjustments Debit (d) 500 4,000 985 800 455 (c) 120 16,340 4,275 1,600 Summed 42,600 42,600 and ruled Credit (e) 250 (f) Debit Credit (a) 1,240 (b) 200 (f) 900 360 25,000 Adjusted Trial Balance 50 (e) 250 (d) (c) 500 120 50 (a) 1,240 (b) 200 2,360 2,360 83
- 84. Add/Subtract Adjustments o The next step is to add or subtract the adjustments to (or from) the amounts found in the Unadjusted Trial Balance columns and enter the results in the Adjusted Trial Balance columns. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 85. Unadjusted Trial Balance Account Title 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Cash Accounts Receivable Supplies Prepaid Insurance Land Office Equipment Accumulated Depr. Accounts Payable Wages Payable Unearned Rent Capital Stock Dividends Fees Earned Rent Revenue Wages Expense Rent Expense Depreciation Expense Utilities Expense Supplies Expense Insurance Expense Miscellaneous Exp. Debit Credit 2,065 2,220 2,000 2,400 20,000 1,800 Adjustments Debit (d) 500 4,000 120 (a) 1,240 (b) 200 250 (d) (c) 500 120 250 (f) 50 (a) 1,240 (b) 200 42,600 2,065 2,720 760 2,200 20,000 1,800 50 (e) Debit 4,000 (e) 985 800 455 42,600 (c) 16,340 4,275 1,600 Credit (f) 900 360 25,000 Adjusted Trial Balance 2,360 2,360 4,525 1,600 50 985 2,040 200 455 43,400 Credit 50 900 250 240 25,000 16,840 120 43,400 85
- 86. Spreadsheet o Preparing the work sheet as a spreadsheet allows the computer to assist you in the process. The spreadsheet illustrated in Exhibit 20 has been reproduced on the next slide. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 88. Extending Amounts to Statement Columns o The next step is to extend amounts in the Adjusted Trial Balance columns to the Income Statement and Balance Sheet columns. Because of space limitations, the unadjusted trial balance and the adjustments columns have been removed for the remainder of this slide presentation. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 89. Adjusted Trial Balance Account Title 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Cash Accounts Receivable Supplies Prepaid Insurance Land Office Equipment Accumulated Depr. Accounts Payable Wages Payable Unearned Rent Capital Stock Dividends Fees Earned Rent Revenue Wages Expense Rent Expense Depreciation Expense Utilities Expense Supplies Expense Insurance Expense Miscellaneous Exp. Debit 2,065 2,720 760 2,200 20,000 1,800 4,000 4,525 1,600 50 985 2,040 200 455 43,400 Credit Income Statement Debit Credit 43,400 Debit 2,065 2,720 760 2,200 20,000 1,800 50 900 250 240 25,000 16,840 120 Balance Sheet 4,525 1,600 50 985 2,040 200 455 16,840 120 4,000 Credit 50 900 250 240 25,000 89
- 90. Adjusted Trial Balance Account Title 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Cash Accounts Receivable Supplies Prepaid Insurance Land Office Equipment Accumulated Depr. Accounts Payable Wages Payable Unearned Rent Capital Stock Dividends Fees Earned Rent Revenue Wages Expense Rent Expense Depreciation Expense Utilities Expense Supplies Expense Insurance Expense Miscellaneous Exp. Debit 2,065 2,720 760 2,200 20,000 1,800 4,000 4,525 1,600 50 985 2,040 200 455 43,400 Credit Income Statement Debit Credit 43,400 Debit 2,065 2,720 760 2,200 20,000 1,800 50 900 250 240 25,000 16,840 120 Balance Sheet 4,525 1,600 50 985 2,040 200 455 9,855 16,840 120 16,960 4,000 33,545 Credit 50 900 250 240 25,000 26,440 The four columns are summed. 90
- 91. Determining Net Income (Net Loss) Income Statement 9,855 7,105 16,960 o Balance Sheet 16,960 33,545 16,960 33,545 26,440 7,105 33,545 Net Income The difference between the Income Statement column totals and Balance Sheet column totals is net income (or net loss) for the period. c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.
- 92. Adjusted Trial Balance Account Title 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Cash Accounts Receivable Supplies Prepaid Insurance Land Office Equipment Accumulated Depr. Accounts Payable Wages Payable Unearned Rent Capital Stock Dividends Fees Earned Rent Revenue Wages Expense Rent Expense Depreciation Expense Utilities Expense Supplies Expense Insurance Expense Miscellaneous Exp. Net income Debit 2,065 2,720 760 2,200 20,000 1,800 4,000 4,525 1,600 50 985 2,040 200 455 43,400 Credit Income Statement Debit Credit 43,400 Debit 2,065 2,720 760 2,200 20,000 1,800 50 900 250 240 25,000 16,840 120 Balance Sheet 4,525 1,600 50 985 2,040 200 455 9,855 7,105 16,960 16,840 120 4,000 16,960 33,545 16,960 33,545 Credit 50 900 250 240 25,000 26,440 7,105 33,545 92
- 93. the ing le let yc mp g C Co tin un nd o cc eE A Th c. 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, or posted to a publicly accessible website, in whole or in part.