Question

End of year condensed worksheet for Amoss Company as of December 31.

Additional Information and/or entries to be adjusted:
a. Prepaid insurance is for a two-year theft policy dated July 1.
b. The ending inventory balance is $300.
c. The building is using the straight-line method with a useful life of 30 years and no salvage value.
d. The balance in Unearned Consulting Revenue pertains to a contract sold on September 1, to provide service to a client for one year.
e. At year-end, office supplies on hand are $24.
f. At year-end, accrued salaries are $50.
g. Repair Service Revenue includes a one-year contract for $120 received on July 1.
h. The tax rate is 50%.

Complete the entire worksheet, assuming that adjusting entries are made only at December 31.

Worksheet

account Titles	trail balance		Adjustments		Income statement		Retained earnings statement		Balance sheet
	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Prepaid Insurance	160			42					42
Inventory, Jan, 1	180
Building	900								900
accumulated depreciation		260		30
Other assets	2068
unearned consulting revenue		48	16
Capital Stock		2300								2300
Retained earnings		620						620
Sales		3600
Repair service revenue		800	60
office supplies expense	120
salaries expense	1800
purchases	2400
TOTAL
Insurance expense
inventory, Dec, 31
Depreciation expense			30
consulting expense				16
office supplies			24
salaries payable				50
unearned repair service revenue				60
income tax expense
income tax payable
NET INCOME
RETAINED EARNINGS, DEC 31

Would the inventory be the difference between 180 and 300? Not sure if I adjusted this all correctly.

Answer 1

Please check out the adjustments (which are balanced Dr=Cr), notice Net income and Tax exp. (ie.50:50) and Retained Earnings with opening balance (ie.620+30 = 650).

Work Sheet:
Acc titles	trial Balance	Adjustments	Adjusted Trial Balance	Income Statement	Balance Sheet
	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Prep Insu.	160			40	120				120
Inv. Jan 1	180			180	0
Inv. Dec 31			300		300				300
Off supplies	120			96	24				24
Building	900				900				900
Acc Dep		260		30		290				290
Other Assets	2068				2068				2068
Unea. Cons. Rev.	48	16			32				32
Capital stock		2300				2300				2300
Ret Earnings		620				620				650
Sales		3600				3600		3600
COGS			180+2400	300	2280		2280
Rep. ser. Rev.		800	60	16		756		756
Salaries exp.	1800		50		1850		1850
Purchases	2400			2400	0
Insu exp.			40		40		40
Dep exp.			30		30		30
Off. Supplies Exp.		96		96		96
Salaries payab.				50		50				50
Une. Rep. ser. Rev.			60		60				60
Income taxexp.					30		30
Income tax payable					30				30
Total	7628	7628	3172	3172	7738	7738	4326	4356
Net Income								30	30	30
G. total									3442	3442