A six-column table for Yan Consulting Company follows. The first two columns contain the unadjusted trial balance

Question:

A six-column table for Yan Consulting Company follows. The first two columns contain the unadjusted trial balance for the company as of December 31, 2013, and the last two columns contain the adjusted trial balance as of the same date.

Adjusted Unadjusted Trial Balance Adjustments Trial Balance $ 45,000 $ 45,000 Cash ... 60,000 Accounts receivable 66,660

Required

Analysis Component

1. Analyze the differences between the unadjusted and adjusted trial balances to determine the eight adjustments that likely were made. Show the results of your analysis by inserting these adjustment amounts in the table’s two middle columns. Label each adjustment with a letter a through h and provide a short description of it at the bottom of the table.

Preparation Component

2. Use the information in the adjusted trial balance to prepare this company’s (a) income statement and its statement of owner’s equity for the year ended December 31, 2013 (Z. Yan, Capital at December 31, 2012, was $80,200, and the current-year withdrawals were $20,000), and (b) the balance sheet as of December 31, 2013.


Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Fundamental accounting principle

ISBN: 978-0078025587

21st edition

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

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