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    Illustration PRAC - AUD Page 13

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    The Box
    1. The document shows a trial balance and adjustments for a company as of December 31, 2018. 2. Key adjustments include recording depreciation expense, doubtful accounts expense, physical inventory count, prepaid insurance expense, and accrued expenses. 3. After posting all adjustments, net income for the period is $388,650 based on revenues of $3,550,800 and expenses of $3,162,150.

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    Illustration PRAC - AUD Page 13

    Uploaded by

    The Box
    55 views4 pages
    1. The document shows a trial balance and adjustments for a company as of December 31, 2018. 2. Key adjustments include recording depreciation expense, doubtful accounts expense, physical inventory count, prepaid insurance expense, and accrued expenses. 3. After posting all adjustments, net income for the period is $388,650 based on revenues of $3,550,800 and expenses of $3,162,150.

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    Illustration PRAC.AUD page 13.xlsx

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    1. The document shows a trial balance and adjustments for a company as of December 31, 2018. 2. Key adjustments include recording depreciation expense, doubtful accounts expense, physical inventory count, prepaid insurance expense, and accrued expenses. 3. After posting all adjustments, net income for the period is $388,650 based on revenues of $3,550,800 and expenses of $3,162,150.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    55 views4 pages

    Illustration PRAC - AUD Page 13

    Uploaded by

    The Box
    1. The document shows a trial balance and adjustments for a company as of December 31, 2018. 2. Key adjustments include recording depreciation expense, doubtful accounts expense, physical inventory count, prepaid insurance expense, and accrued expenses. 3. After posting all adjustments, net income for the period is $388,650 based on revenues of $3,550,800 and expenses of $3,162,150.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 4

    Trial Balance Adjustments

    Debit Credit Debit


    Cash 191,000.00
    Accounts Receivable 615,000.00
    Allow. For Doubtful Accounts 21,000.00
    Inventory, Dec 31, 2017 584,000.00
    Prepaid Expense 8,000.00
    Investments 110,000.00
    Furniture and Equipment 312,000.00
    Miscellaneous Equipment 90,000.00
    Accumulated Depreciation 76,400.00
    Accounts Payable 543,000.00
    Accrued Expenses 51,000.00
    Unearned Rent Income 12,800.00 2,800.00
    Ordinary Share Capital 600,000.00
    Retained Earnings 182,800.00
    Sales 3,500,000.00
    Rent Income 48,000.00
    Purchases 2,424,000.00 50,000.00
    Salaries Expenses 400,000.00
    Advertising Expense 124,000.00
    Commission Expense 80,000.00
    Utilities Expense 32,000.00
    Supplies Expense 12,000.00
    Transportation Expense 14,000.00
    Repairs and Maintenance 16,000.00
    Miscellaneous Expenses 23,000.00 3,000.00
    Total 5,035,000.00 5,035,000.00

    Adjustments:
    Equipment Acquision Fund 60,000.00
    Doubtful Accounts Expense 9,750.00
    Treasury Shares 30,000.00
    Depreciation Expenses 39,200.00
    Insurance Expense 1,200.00
    Inventory, Dec 31, 2018 650,000.00
    Cost of Goods Sold 2,408,000.00
    Total 3,253,950.00
    Profit Before Tax
    Adjustments Income Statement SFP
    Credit Debit Credit Debit Credit
    60,000.00 131,000.00
    615,000.00
    9,750.00 30,750.00
    584,000.00 -
    1,200.00 6,800.00
    30,000.00 80,000.00
    312,000.00
    90,000.00
    39,200.00 115,600.00
    50,000.00 593,000.00
    3,000.00 54,000.00
    10,000.00
    600,000.00
    182,800.00
    3,500,000.00
    2,800.00 50,800.00
    2,474,000.00 -
    400,000.00
    124,000.00
    80,000.00
    32,000.00
    12,000.00
    14,000.00
    16,000.00
    26,000.00

    60,000.00
    9,750.00
    30,000.00
    39,200.00
    1,200.00
    650,000.00
    2,408,000.00
    3,253,950.00 3,162,150.00 3,550,800.00 1,974,800.00 1,586,150.00
    388,650.00 388,650.00
    3,550,800.00 3,550,800.00 1,974,800.00 1,974,800.00
    Debit Credit
    1 Equipment Acquision Fund 60,000.00 a
    Cash 60,000.00 a

    3 Purchases 50,000.00 a
    Accounts Payable 50,000.00 a

    4 Doubtful Accounts Expense 9,750.00 a


    Allowance for Doubtful Accounts 9,750.00 a

    5 Treasury Shares 30,000.00 a


    Investment Account 30,000.00 a

    6 Depreciation 39,200.00 a
    Accum. Depreciation 39,200.00 a

    7 Insurance Expense 1,200.00 a


    Prepaid Expenses 1,200.00 a

    8 Unearned Rent Income 2,800.00 a


    Rent Income 2,800.00 a

    9 Miscellaneous Expense 3,000.00 a


    Accrued Expenses 3,000.00 a

    2 Ending Inventory 650,000.00 a


    Cost of Goods Sold 2,408,000.00 a
    Purchases 2,474,000.00 a
    Beginning Inventory 584,000.00 a
    Allow. 30750
    Beg Allow. -21000
    Adj 9750

    Depreciation:
    Total Equipment 402000 Prev Equipment 38200
    Less: Purchased -20000 New Equipment 1000
    Equipment Beg. 382000 Total Deprn 39200

    Yearly Deprn 38200


    Rate of Deprn 0.1

    Ins Exp from Oct to Dec 1200

    Beg Unearned Rent 12800


    End. Unearned Rent -10000
    Earned Rent 2800

    Beg Invent 584000


    Purchases 2474000 (2.424M + 50k)
    TGAS 3058000
    COGS 2408000
    End. Invent 650000 (600k +50k)

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