Question

Bolton Consulting Work Sheet For the year ended December 31 Balance Sheet and Statement of Stockholders Income Statement Equity Adjusted Unadjusted Trial Trial Balance Adjustments Balance Account Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Cash 31,000 Accounts Receivable 8,000 Supplies 12,500 Automobiles 175,000 Accum. Depr. - Autos 52,000 17,500 Accounts payable Unearned 26,500 fees Salaries payable Capital Stock 58.000 Dividends 42,500 241,750 Fees earned Salary 91,000 Module 8: Portfolio Project 262020 expense Rent expense 35,750 Advertising expense Supplies expense Depreciation expense Totals 395.750 395,750 Instructions Complete the worksheet using the following information: (a) Unpaid and unrecorded salaries earned by employees, $6,500 (b) Unused supplies still on hand is $3,200. (c) Machinery depreciation, $20,000. (d) Customers who paid $12,750 in advance have received their services. (e) Advertising for last quarter of the year in the amount of $5,200 remains unpaid and unrecorded. (1) The rent expense incurred and not yet paid or recorded at fiscal year-end is $4,100

Answer 1

Preparing the Worksheet:-

Bolton Consulting

Worksheet

For the year ended December 31

Accounts	Unadjusted	Trial Balance	Adjustments		Adjusted	Trial Balance	Income	Statement	Balance	Sheet
	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$31,000				$31,000				$31,000
Accounts Receivable	8,000				8,000				8,000
Supplies	12,500			9,300	3,200				3,200
Automobiles	175,000				175,000				175,000
Accumulated Depreciation, Autos		$52,000		20,000		$72,000				$72,000
Accounts Payable		17,500		9,300		26,800				26,800
Unearned Fees		26,500	12,750			13,750				13,750
Salaries Payable		0		6,500		6,500				6,500
Capital Stock		58,000				58,000				58,000
Dividends	42,500				42,500				42,500
Fees Earned		241,750		12,750		254,500		$254,500
Salary Expense	91,000		6,500		97,500		$97,500
Rent Expense	35,750		4,100		39,850		39,850
Advertising Expense	0		5,200		5,200		5,200
Supplies Expense	0		9,300		9,300		9,300
Depreciation Expense	0		20,000		20,000		20,000
Totals	$395,750	$395,750	$57,850	$57,850	$431,550	$431,550	$171,850	$254,500	$259,700	$177,050
						Net Income	$82,650			$82,650
						Totals	254,500	$254,500	$259,700	259,700

Working Notes:-

(a) Salaries Unrecorded, so Debit the Salary Expense and Credit the Salaries Payable by $6,500.

(b) Supplies Expense=(Supplies - Supplies on hand)

=($12,500-$3,200)

=$9,300

(c) Depreciation Expense Debited and Accumulated Depreciation Credited by $20,000.

(d) The amount of $12,750 was earned. So Debit the Unearned Fees and Credit the Fees Earned by $12,750.

(e) Advertising Expense remain unpaid of $5,200. So Debit the Advertising Expense and Credit the Accounts Payable by $5,200.

(f) Rent Expense incurred but not paid. So Debit the Rent Expense and Credit the Accounts Payable by $4,100.