The unadjusted trial balance and adjustment data for Elbow Cycle Repair Shop are provided.

Additional information:

1. The 12-month insurance policy was purchased on June 1, 2020.

2. A physical count of supplies shows $1,310 on hand on January 31, 2021.

3. The building has an estimated useful life of 50 years. The equipment has an estimated useful life of 9 years.

4. The mortgage payable has a 5% interest rate. Interest is paid on the fi rst day of each month for the previous month?s interest.

5. By January 31, 2021, $1,300 of services related to the unearned revenue have been provided.

6. During the next fiscal year, $4,500 of the mortgage payable is to be paid.

Instructions

Prepare a work sheet for the year ended January 31, 2021.

Is it still necessary to record the adjusting entries in the journal and post them to the ledger accounts when using a work sheet?

Transcribed Image Text:

ELBOW CYCLE REPAIR SHOP Trial Balance January 31, 2021 Debit Credit $ 3,200 Cash Accounts receivable Prepaid insurance Supplies Land 6,630 6,420 5,240 50,000 Building Accumulated depreciation-building Equipment Accumulated depreciation-equipment Accounts payable 190,000 $ 11,000 27,000 4,500 6,400 Unearned revenue 21,950 Mortgage payable H. Dude, capital H. Dude, drawings 182,000 61,000 101,100 Service revenue 235,550 Salaries expense Utilities expense Interest expense 115,200 12,000 5,610 $522,400 $522,400