Question

Selected worksheet data for Elsayed Company are presented below.

Trial Balance Debit Credit Adjusted Trial Balance Debit Credit 33,670 19,517 25,182 6,118 11,984 Account Titles Accounts Receivable Prepaid Insurance Supplies Accumulated Depreciation Equipment Salaries and Wages Payable Service Revenue Insurance Expense Depreciation Expense Supplies Expense Salaries and Wages Expense 4,051 96,094 88,888 10,675 4,429 48,737

Answer 1

Solution

Elsayed Company

Fill in missing information:

Account Titles	Trial Balance		Adjusted Trial Balance
	Debit	Credit	Debit	Credit
Accounts Receivable	26,464		33,670
Prepaid Insurance	25,182		19,517
Supplies	6,118		1,689
Accumulated Depreciation - Equipment		11,984		22,659
Salaries and Wages Payable		0		4,051
Service Revenue		88,888		96,094
Insurance Expense			5,665
Depreciation Expense			10,675
Supplies Expense			4,429
Salaries and Wages Expense	44,686		48,737

Computations:

1. Increase in accounts receivable = increase in service revenue

96,094 – 88,888 = 7,206

So, increase in accounts receivable = 7,206

Beginning, accounts receivable = adjusted accounts receivable – increase in accounts receivable

= 33,670 – 7,206 = 26,464

2. Adjusted trial balance supplies account = trial balance supplies account – supplies expense

= 6,118 – 4,429 = 1,689

3. Accumulated depreciation – equipment adjusted trial balance value = trial balance value + depreciation expense

= 11,984 + 10,675 = 22,659

4. Salaries and wages expense, trial balance value = adjusted salaries and wages expense – salaries and wages payable adjusted

= 48,737 – 4,051 = 44,686

5. Salaries and wages payable, trial balance value is zero as no information about beginning balance is available.
6. Insurance expense = prepaid insurance, trial balance value – prepaid insurance, adjusted trial balance value

= 25,182 – 19,517 = 5,665

Adjusting entries:

Account Titles and Explanation	Debit	Credit
Accounts Receivable	7,206
Sales Revenue		7,206
(To record service revenue on account)
Insurance Expense	5,665
Prepaid Insurance		5,665
(To record expired insurance)
Supplies Expense	4,429
Supplies		4,429
(To record cost of supplies used)
Depreciation Expense	10,675
Accumulated Depreciation – Equipment		10,675
(To record depreciation expense)
Salaries and Wages Expense	4,051
Salaries and Wages Payable		4,051
(To record accrued salaries)