Question

S kiume, Survey of Accounting, le Return to Blackboard LOAD : 12:46 PM / Remaining: 105 min. CALCULATOR PRINT Record adjustments for the month of June that reflect the following data. Provide explanations for specific revenue and expense accounts in the right-most co place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) 1. Supplies on hand at June 30 total $720 2. A utility bill for $270 has not been recorded and will not be paid until next month. 3. The insurance policy is for a year. 4. Services were performed for $4,330 of unearned service revenue by the end of the month. 5. Salaries of $1,390 are accrued at June 30. 6. The equipment has a 5-year life with no salvage value and is being depreciated at $250 per month for 60 months 7. Invoices representing $4,280 of services performed during the month have not been recorded as of June 30. Assets Liabilities Cash + Accts. Rec. Accts. Prepd. Insur 3,840 Acc. Depr.- Equip. Supplies 1,972 pay. Unearn Serv. Rev. + Bal Sal/Wages Pay. 6,850 Equip 15,000 7,000 0 4,275 5,200 2. search o

Answer 1

Image is not clearly available. assuming that the last coloumn is of capital and balance has been calcualted accordingly.

It has been mentioned any where about the financial year, considering the year end at 30th june all the adjustments have been made.

Majorly impacted adjustments due to above assumption -

1. Prepaid insurance has been adjusted in full considering it as an expense for the year ended 30 june.

2. Accumulated depriciation to be calculated for the whole year i.e $250 * 12 months.

Bal Cash + Accts. Rec. $ 6,850.00 + $ 7,000.00 1 + 2 + + + + + 3 + + Supplies + Prepd. Insur + Equipment Acc. Dep Equip = Accts. Pay + Unearn Serv. R + Sal./Wages Pay. + Capital +$ 1,972.00 + $ 3,840.00 + $ 15,000.00 - = $ 4,275.00+ $ 5,200.00 + $ + S $ 25,187.00 + $ (1.252.00) + + + $ (1,252.00) + + $ 270.00 + + $ (270.00) $ (3.840.00 + + + $ (3,840.00) + + $ (4,330.00) + + $ 4,330.00 + $ 1.390.00 + $ (1,390.00) $ 3,000.00 + + $ (3,000.00 + $ 4,280.00 + + + + 4 + + + + 5 + + + + + 6 + + + + + 7 +$ 4,280.00 + + + +

Explanation -

1. Supplies expensed for the year will be $1972 - $720 = $1252.

2. Recording the bill will create an liability to be paid in future and will reduce the profit.

3. Insurance policy which has been paid earlier now has been expensed.

4. Unearned revenue is now earned therfore credited to the capital account.

5. Salaries outstanding to be paid in future will reduce our capital as it is an expense.

6. Depriciation to be charged for the asset will decrease the capital.

7. Recording the revenue will increase the capital and receivables.

If we don't consider the assumptions then the figures will be -

i.e considering the insurance for one month to be expensed and depriciation for one month.

Bal Cash + Accts. Rec. + Supplies + Prepd. Insur + Equipment - Acc. Dep Equip = Accts. Pay + Unearn Serv. R + Sal./Wages Pay. + Capital $ 6,850.00 + $ 3,840.00 + $ 15,000.00 $ 4,275.00+ $ 5,200.00 + $ - 7,000.00 + $ 1,972.00 + $ + $ (1,252.00) + 1 + + + + + + + + + $ 270.00 + + 2 3 + + + $ + + (320.00) + + + $ + $ + $ + $ + $ 1,390.00 + $ + $ + $ 25.187.00 (1,252.00) (270.00) (320.00) 4,330.00 (1,390.00 (250.00) 4,280.00 4 + + + = + $ (4.330.00) + + $ 5 + + + + + + + + $ 250.00 = + + 6 7 + 4,280.00 + + + +