Question

Attendance Number Name TopLevel Roofing For Month Ended 3/31/16 Trial Balance DR Adjustments DR Balance Sheet DR Adjusted Trial Balance Income Statement CR DR CR CR CR Allowance for Uncoll. Accts Accumulated Depr 1200 1400 Accounts Payable Unearned Revenue Terry Tines, Caplital err y Tines, Drawing laries Expense 700 3000 Miscellaneous Expense Totals 1. Roofing Supplies on hand on March 31 total $140 2. Depreciation on the equipment for March is $200. 3. Some of the unearned revenue ($200) has now been earned. 4. Employees have earned salaries in the amount of $350 that have not been paid yet 5. The company estimates that 5% of revenue will become uncollectible. Debit Bad Debts Expense, credit Allowance for Uncollectible Accounts. Include the effect of adjustment 3 in your calculation. Required: complete the worksheet...Prepare the adjustments...Create the financial statements.

Answer 1

Ans: 1) Worksheet

	Trial Balance		Adjustment		Adjusted Trial Balance		Income Statement		Balance sheet
	Dr. ($)	Cr. ($)	Dr. ($)	Cr. ($)	Dr. ($)	Cr. ($)	Dr. ($)	Cr.($)	Dr. ($)	Cr.($)
Cash	2500				2500				2500
Account Receivable	1800				1800				1800
Allowance for Uncollected Account Receivables		300		160		460				460
Roofing Supplies	1400			1260	140				140
Equipment	6000				6000				6000
Accumalted Depriciation on Equipment		1200		200		1400				1400
account Payables		1400				1400				1400
Unearned revenue		300	200			100				100
Terry Tines, Capital		7000				7000				7000
Terry Tines, Drawings	600				600				600
Service Revenue		3000		200		3200		3200
Salaries Expenses	700		350		1050		1050
Miscelleneous Expenses	200				200		200
Roofing Supplies Expenses			1260		1260		1260
Depriciation			200		200		200
Salaries Expenses Payable				350		350				350
Bad Debts			160		160		160
Profit							330			330
	13200	13200	2170	2170	13910	13910	3200	3200	11040	11040

2) Adjustments Entries

Particulars	Debit ($)	Credit ($)
Roofing Supplies Expense A/c Dr. To Roofing Supplies A/c ( Being Roofing Supplies expenses recorded)	1260	1260
Depreciation A/c Dr. To Accumulated depreciation on Equipment A/c (Being depreciation on equipment recorded)	200	200
Unearned revenue A/c Dr. To Service revenue A/c ( Being unearned revenue recorded as revenue)	200	200
Salaries A/c Dr. To Salaries Payable A/c ( Being unpaid salaries recorded)	350	350
Bad Debts A/c Dr. To Allowance for uncollected account receivable A/c ( Being Bad debts recorded)	160	160

3)

Fianancial Statement
Particulars		Amount ($)
Equity and Liability
Owner's Fund
Terry Tines, Capital	7000
Profit	330
less
Terry Tines, Drawings	600
		6730
Liabilities
Salaries Expenses Payable	350
Unearned revenue	100
account Payables	1400
Allowance for Uncollected Account Receivables	460
		2310
Total		9040
Assets
Account Receivable		1800
Cash		2500
Roofing Supplies		140
Equipment	(6000-1400)	4600
Total		9040