Question

1.	Unexpired insurance at year-end is $1,800.
2.	A year-end inventory of supplies shows a balance of $3,800.
3.	Depreciation has not yet been taken.
	a. Furniture and Equipment at 20% declining balance method
	b. Automobile at 30% declining balance method
	The bank loan is due in 2 years.
	calculate adjustments, income statement and balance sheet			showing columns for debits and credits

Service Company		Worksheet
ACCOUNTS	TRIAL BALANCE
	DEBIT	CREDIT
Bank	18,744.00
Accounts Receivable	7,500.00
Supplies	5,000.00
Prepaid Insurance	2,400.00
Furniture and Equipment	23,000.00
Accum. Depreciation		9,000.00
Automobile	30,000.00
Accum. Depreciation		22,150.00
Accounts Payable		4,700.00
Bank Loan		6,921.00
A. Service, Capital		14,678.00
A. Service, Drawings	11,250.00
Revenue		65,000.00
Bank Charges	360.00
Car Expense	2,150.00
Interest Expense	250.00
Miscellaneous Expense	680.00
Telephone Expense	2,415.00
Wages Expense	18,700.00
	122,449.00	122,449.00

Answer 1

	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance		Income Statement		Balance Sheet
Account	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Bank	$        18,744				$           18,744				$           18,744
Accounts Receivable	$          7,500				$              7,500				$              7,500
Supplies	$          5,000			$              1,200	$              3,800				$              3,800
Prepaid Insurance	$          2,400			$                 600	$              1,800				$              1,800
Furniture and Equipment	$        23,000				$           23,000				$           23,000
Accumulated Depreciation		$          9,000		$              2,800		$           11,800				$           11,800
Automobile	$        30,000				$           30,000				$           30,000
Accumulated Depreciation		$        22,150		$              2,355		$           24,505				$           24,505
Accounts Payable		$          4,700				$              4,700				$              4,700
Bank Loan		$          6,921				$              6,921				$              6,921
A. Service, Capital		$        14,678				$           14,678				$           14,678
A. Service, Drawings	$        11,250				$           11,250				$           11,250
Revenue		$        65,000				$           65,000		$           65,000
Bank Charges	$             360				$                 360		$                 360
Car Expense	$          2,150				$              2,150		$              2,150
Interest Expense	$             250				$                 250		$                 250
Miscellaneous Expense	$             680				$                 680		$                 680
Telephone Expense	$          2,415				$              2,415		$              2,415
Wages Expense	$        18,700				$           18,700		$           18,700
Insurance Expense			$             600		$                 600		$                 600
Supplies Expense			$          1,200		$              1,200		$              1,200
Depreciation Expense - Furniture			$          2,800		$              2,800		$              2,800
Depreciation Expense - Auto			$          2,355		$              2,355		$              2,355
Totals	$     122,449	$     122,449	$          6,955	$             6,955	$         127,604	$         127,604	$           31,510	$           65,000	$           96,094	$           62,604
Net Income							$           33,490			$           33,490
Totals							$           65,000	$           65,000	$           96,094	$           96,094

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