Question

Marlborugh Gate Transit Worksheet For the Month Ended December 31,2017 Trial Balance Adjustments Debit Austed Trial Balance Debit Income Statement Debit Retained tarning 8alance Sheet Account KAccount Name Debit Credit Credit Credt Credt Debt Credit Debit Credit 100 Cash 103 Accounts Recevable 107 Supplies on Hand 10 Prepid Inurance 112 Prepaid Rent 12nterest Receivable 150Thucks 151accumiated Deoreciation 200Accounts Peysble 206 Salaries Paysble 216 Uneansed Service Fee 00 Capital Stnck 310 Pesained Eerning 120 Dividend 400Service Fee 418terest Revenue 505 8.120 8320 8320 6,200 1,900 1.600 n0,800 6,200 6.200 4,400 2.500m 4000 1,900 (d.400 2,400 4.200 15.000 10,8001 40,000 40,000 40.000 300 300 300 15,000 50,000 15.000 15.000 50.000 50,000 1300 2,500 2,s00 13,920 13,920 13,920 3,050 680 3400 150 Andrertisin Espense 3.050 3,050 680 680 907 wres tpene s e Epense 12lura 3s00 150 150 1.000 4,000 ,710 312 race fseme 3m ent Epere 518 epes Epee s21 Depreciation Expense 1,000 4,000 1,000 4000 3,720 ,000 10 000 11.500 67.720 .330 79.230 21.200 1,90 41,300 4.000 Net Income 7280 13.920 3,920 (2,380 2.500 7.280 Artained Eaming 12/31/2012 35.520 44,000

Answer 1

malborough Galatangit worksheet For the month ended Dec 31 2017. (in ? Remarks Isial Balent m5l AccounT NAME Debit credit Debit Credit Очеllеs еm 44nso Jччоо 2,500 Jer notes Notes Insurance (2,400 4000 15,000 No des 4200 Prepaid fent Insurance Expense wortell 1000 4000 Note Notes Rent Expense Supplier expense PGLALC (Profit (lou) Insurance payable suspense ale 5,000 2,500 9,000 Balance 21000 21,500 Notes ☺ Although adjustment of 2.500 credit made to supplier on tland but respective Debit entry to prostor loss Ale (81) Inventory Afc es not made @ however existing prepatrd Insurance Debit balance was how adjusted as prepaid Insurance credit balance meaning Insurance payable al is to be created as now Insurance Amonnt was die

or balance was received from prepaid Insuranace. Alc Howered Insurance expene was charged only $1,000 Debit, therefore remaining $3,000 was a back from the Insurance co. Cor) can be due Amount And the same can be adjusted to Suspense Accont' prepaid Rent assue was same as above case, credit off 15000 was entered in prepaid Rent , tuning it anto the credit balance Account. Although Rent exp. was booked for $4,000 remaining amount seems to be due or received Amonet back in casly Kank form iey & (15,000 - 4,200 - 4ooo], $6,000 should be entered en Suspense Account' supplier Expense of $15,000 Debit has been entered but its respective credit contry was not made Expense was paid or kept payable was not in clear. so the same $5,000 credit should be given to Suspense aciant. suspense Alc (en to read to prepaid 5,000 Ensurance 3000 by supplier Spense to prepaid 11ooo by balold 9,000 14 000 14000

SUSPENSE ACCOUNT HAS BEEN CREATED FOR THE AMBIGUITY IN CLOSING BALANCES FOR THE TRANSACTIONS.HOWEVER TRADITIONAL PREPARATION OF POSTING OF LEDGER BALANCES GIVES THE CORRECT PREPARATION OF FINANCIAL STATEMENTS THAN MERE EXCEL BALANCES ADJUSTMENTS.