Question

Coleson Services unadjusted trial balance at the end of December 2019 is presented below. Adjusting entries have not yet been made. Use the trial balance and the information below to complete the worksheet.

Dec 31 | Services were provided worth $450, to be paid next month

Dec 31 | The equipment was purchased at the beginning of the year and is expected to last four years with no residual value

Dec 31 | Of the balance of unearned revenue, $440 has been earned

Dec 31 | The amount in prepaid insurance is for an annual policy that was paid on September 1st, 2019

Thanks for your assistance

Answer 1

	Unadjusted T.B		Adjustments		Adjusted T.B		Income Statement		Balance Sheet
Account title	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	1,800		440		2,240	-			2,240
Accounts Receivable	3,300				3,300	-			3,300
Prepaid Insurance	2,400			800	1,600				1,600
Equipment	6,300				6,300	-			6,300
Accumulated depreciation				1,575	-	1,575				1,575
Accounts Payable		2,900			-	2,900				2,900
Unearned rent revenue		1,200		440	-	1,640				1,640
Bank loan		1,200			-	1,200				1,200
Owners capital		5,400			-	5,400				5,400
Owners Drawings	2,000				2,000	-			2,000
Service revenue		11,400		450	-	11,850		11,850
Depreciation			1,575		1,575	-	1,575
Insurance			800		800	-	800
Maintenance	1,400				1,400	-	1,400
Rent expense	1,300				1,300	-	1,300
Salaries & wages	1,900				1,900	-	1,900
Telephone expense	1,000				1,000	-	1,000
Travel Expense	700				700	-	700
Service accrued			450		450	-	450
Net Income					-	-	2,725			2,725
Total	22,100	22,100	3,265	3,265	24,565	24,565	11,850	11,850	15,440	15,440
Note-
Net Income is the balancing figure in Income Statement. i.e the difference between credit & debit side .
It is ultimately transferred to Balance Sheet and added to capital.