Adjusted Trial Balance - BC Bookkeeping Tutorials|dwmbeancounter.com

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Adjusted Trial Balance

Closing The Books



Where do we get the information needed to prepare our Adjusted Trial Balance ? Our Trial Balance Worksheet. Need Proof ?

We start with the information from our Trial Balance and then enter our adjusting entries (debits and credits) and add or subtract the amounts to arrive at our Adjusted Trial Balance amounts.
Assumptions and other events to use in adjusting our books are as follows:

1. Office Supplies Inventory had a beginning of the year balance of $500. Purchases of an additional $1000 were made during the year and charged directly to the Office Supplies Inventory Account which resulted in the ending balance of $1500 in the Trial Balance. We counted and valued the actual office supplies we had on hand at year end. The ending value of the actual count was $300.

2. We totalled our Accounts Receivable Subsidiary Ledger and the balance agreed with our Accounts Receivable Control Account. They both totalled $25800. We also reviewed all of our customers and found that one of our customer accounts Joe The Dead Beat who owed us $1000 was very past due and had bankrupted.

3, We reviewed our insurance coverage and found that our premium for coverage for our entire year was $6000. The policy runs from January-December and we paid the full amount for the coverage in January.

4. Our Inventory for Resale is made up of all our computers, monitors, and printers. The balance in the Trial Balance is the balance as of the beginning of our year and was based on our prior year's count. We received our current year's count from our warehouse and arrived at a value (cost) of $8000 as of December 31, xxxx. Our purchases account in our trial balance shows that we purchased $70,000 worth of computer equipment during the year.

5. We reviewed our bank statements for the year and found that we had failed to record our monthly bank charges. The total of the charges for the year was $240.

6. The only property or equipment we have is a brand new delivery truck. The cost of the truck was $15,500 and is the amount shown in the Trial Balance Column. The truck was purchased at the beginning of January and we feel that we'll get 5 years of use from this vehicle.

7. We reviewed our receiving reports and found that we had incurred a maintenance expense in December for $500 that had not yet been billed by WeFixIt Company.

8. During a review of our supplier's invoices, we found an invoice for $250 that was charged to Advertising Expense that should have been charged to Professional Fees.

9. On December 31, xxxx Smart Computerguy decided that he needed some additional help and hired two employees to begin working the following year.
Our Adjusted Trial Balance
Shabby Computer Systems   
Adjusted Trial Balance Worksheet  
December 31, xxxx  
 
Account Name  / DescriptionTrial Balance Adjusting Entries  Adjusted Trial Balance

DebitCreditDebitRefCreditRefDebitCredit
Balance Sheet Accounts


Cash
5500
24055260
Accounts Receivable
25800
1000224800
Office Supplies Inventory
1500
12001300
Prepaid Insurance
6000
60003
Inventory for Resale
10500
7000047250048000
Truck
15500
3100612400
Accounts Payable

10001000
Other Accruals


5007500
Shabby Computer Systems, Capital

2210022100



Shabby Computer Systems, Drawings
24000
24000



Total Balance Sheet Accounts
8880032100
7476032600



Revenue & Expense Accounts


Consulting Services

5000050000
Computer Sales

100000100000
Cost of Goods Sold-Computers


72500472500
Purchases
70000
700004
Rent Expense
6000
6000
Utilities Expense
4800
4800
Office Supplies


120011200
Insurance Expense


600036000
Vehicle Operation Expense
3600
3600
Maintenance & Repairs
2400
50072900
Depreciation Expense


310063100
Bad Debt Expense


100021000
Bank Charges


2405240
Advertising Expense
4500
25084250
Professional Fees Expense
2000
25082250



Total Revenue/Expense Accounts
93300150000
107840150000



 Total All Accounts
182100182100182600182600
Click on the Reference Number (Ref) in the Adjusted Trial Balance Worksheet for an explanation of the adjusting entry.


What's Next ?

After Closing Trial Balance Worksheet
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