Adjusting Entries
(a) What is adjusting entries? What is the necessity of adjusting entries?
(b) Jaya stared her own firm. On January 2009 the trial balance is as following:
Cash 35000
Accounts receivable . 77000
Supplies 24000
Office equipment 20000
Accounts payable 150000
Unearned service revenue 40000
Jaya capital 100000
Service revenue 45000
Salaries exp. 40000
Rant exp 79000
Additional data:
1. A utility bill for tk 15000 has not been recorded and will not be paid until next month.
2. The insurance policy is for a year.
3. Supplies on hand tk 13000
4. Tk 25000 of unearned service revenue has been earned at the end of the month.
5. Salaries of tk 15000 are accrued.
6. The office equipment has 5 year life and 10000 salvage value.
7. Invoice representing tk 30000 of service performed during the month have not been recorded as on January.
8. Sales include tk 5000 on sales or return for which neither conformation received. Nor the time limit expired. Cost of goods sold 4000
Required:
Prepare the adjusting entries and adjusted trial balance.
No comments:
Post a Comment