Question

lance prior to adjustments follows: NAZARI ELECTRICAL SERVICES Trial Balance August 31, 2021 Credit Debit $ 13,870 23.400 18,000 108,000 $ 38,250 98,000 Cash Supplies Debt investments Equipment Accumulated depreciation equipment Vehicles Accumulated depreciation-vehicles Accounts payable Unearned revenue Notes payable A. Nazari, capital A. Nazari, drawings Service revenue Interest revenue Repairs expense Insurance expense Interest expense Rent expense Salaries expense 42,875 7.115 4,500 48,000 68,175 32,400 180,115 360 25,235 8,550 2.535 18,900 40,500 $389,390 $389,390 Additional information: 1. The equipment has an expected useful life of 12 years. The vehicles' expected useful life is eight years. 2. A physical count showed $1,500 of supplies on hand at August 31, 2021. 3. As at August 31, 2021, there was $2,500 of revenue received in advance and the related services have not yet been performed.

Answer 1

Nazari Electrical Services Adjusting Enteries Trans. Particulars 1 Depreciation Expense a/c Dr. To Accum. Depre - Equip. (To record depreciation) 108000 / 12 Debit in $ Credit in $ 9000 9000 12250 12250 Depreciation Expense a/c Dr. To Accum. Depre - Vehicle (To record depreciation) 98000 / 8 2 21900 Supplies Expense a/c Dr. To Supplies (Supplies expensed) 23400 - 1500 21900 3 2000 Unearned Revenue a/c Dr. To Service Revenue (Revenue earned) 4500 - 2500 2000 4 300 300 Interest Receivable a/c Dr. To Interest Revenue (Interest receivable recorded) 18000 x 4% x 5/12 I 5 Dr. 1850 Salaries Expense a/c To Salaries Payable (Salary accrued) 1850 6 No journal entry required 7 No journal entry required

Worksheet For the period ending 31.8.2021 Particulars Cash Interest Receivable Supplies Debt Investments Equipment Accum. Depre - Equip. Vehicle Accum. Depre - Vehicle Accounts Payable Unearned Revenue Salaries Payable Notes Payable A.Nazari, Capital A. Nazari, Drawings Service Revenue Interest Revenue Repairs Expense Insurance Expense Interest Expense Rent Expense Salaries Expense Depreciation Expense Supplies Expense Totals Unadjusted Adjustments Adjusted Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 13870 13870 300 300 23400 21900 1500 18000 18000 108000 108000 38250 9000 47250 98000 98000 42875 12250 55125 7115 7115 4500 2000 2500 1850 1850 48000 48000 68175 68175 32400 32400 180115 2000 182115 360 300 660 25235 25235 8550 8550 2535 2535 18900 18900 40500 1850 42350 21250 21250 21900 21900 389390 389390 47300 47300 412790 412790 Statement of Income For the period ending 31.8.2021 Service Revenue Interest Revenue Total Revenue 182115 660 182775 Repairs Expense Insurance Expense Interest Expense Rent Expense Salaries Expense Depreciation Expense Supplies Expense Net Income 25235 8550 2535 18900 42350 21250 21900 140720 42055 Statement of Owner's Equity For the period ending 31.8.2021 A.Nazari, Capital Add:Capital introduced 65175 3000 68175 42055 -32400 77830 Net Income A.Nazari, Drawings

Amounts in $ Amounts in $ Balance sheet As at 31.8.2020 Assets Current Assets Cash Interest Receivable Supplies Debt Investments Amounts in $ Amounts in $ Liabilities Current Liabilities 13870 Accounts Payable 300 Unearned Revenue 1500 Salaries Payable 18000 33670 Notes Payable 7115 2500 1850 8000 19465 Non Current Liabilities Notes Payable 40000 60750 Non Current Assets Equipment Accum. Depre - Equip. Vehicle Accum. Depre - Vehicle Total Assets 108000 -47250 98000 -55125 Owner's Equity 42875 A.Nazari, Capital 137295 Total Liabilities 77830 137295