Question

CHART OF ACCOUNTS Cole Designs General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 12 Accounts Receivable 14 Supplies EXPENSES 15 Prepaid Insurance 51 Wages Expense 18 Equipment 52 Supplies Expense 55 Insurance Expense 19 Accumulated Depreciation-Equipment 56 Depreciation Expense

Answer 1

All figures are in $

Journal					Accounting Equation
Date	Description ( Adjustment entries )	Post ref	Debit	Credit	Assets	Liabilities	Equity
Dec,31,2018	Debtors		6200
	To Sales			6200
Dec,31,2018	Wages		1850
	To Outstanding Wages			1850
Dec,31,2018	Supplies Exps		3530
	Supplies Inventory			3530
Dec,31,2018	Insurance		2700
	To Prepaid Insurance			2700
Dec,31,2018	Depreciation		1700
	To Equipment			1700
Dec,31,2018	Unearned Fee		5550
	To Account Receivables			5500

Working Note 1
Account Receivable Account
Particulars	Amount	Particulars	Amount
To bal brought down	32600	By Unearned Fee	5550
To Sales	6200
		To balance carried down	33250
Total	38800		38800
Working Note 2
Wages Account
Particulars	Amount	Particulars	Amount
To bal brought down	44300
To outstanding wages	1850
		To balance carried down	46150
Total	46150		46150
Working Note 3
Prepaid Insurance
Particulars	Amount	Particulars	Amount
To bal brought down	4400	By Insurance	2700
		To balance carried down	1300
Total	4400		4000
Working Note 4
Supplies Account
Particulars	Amount	Particulars	Amount
To bal brought down	3650	By Supplies exps	3530
		To balance carried down	120
Total	3650		3650
Owners Equity
Before adjustement			46750
after adjustement			43170
Since there was a change of $ 3580 in the Net Income
due to adjustments, the same effect will go to Owners Equity
and it will stand at 43170
Depreciation has been accounted for $ 1700