The unadjusted trial balance and adjustment data for Silver Ridge Plumbing are provided.

Additional information:

1. The equipment has an expected useful life of 10 years. The vehicles? expected useful life is eight years.

2. A physical count showed $2,000 of supplies on hand at October 31, 2021.

3. Accrued salaries payable at October 31, 2021, were $2,550.

4. Interest on the 5.5% note payable is payable at the end of each month and $10,000 of the principal must be paid on December 31 each year. Interest payments are up to date as at September 30, 2021.

5. The owner, H. Burke, invested $2,000 cash in the business on December 28, 2020. (Note: This has been correctly recorded.)

Instructions

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

Explain why preparing a work sheet is an optional step in the accounting cycle.

Transcribed Image Text:

SILVER RIDGE PLUMBING Trial Balance October 31, 2021 Debit Credit $ 35,420 Cash Supplies Equipment Accumulated depreciation-equipment 6,000 140,000 $ 42,000 Vehicles 110,000 Accumulated depreciation-vehicles Accounts payable Notes payable H. Burke, capital H. Burke, drawings Service revenue 48,125 7,950 60,000 75,750 36,000 200,525 Repairs expense Insurance expense Interest expense Rent expense Salaries expense 28,038 9,500 3,392 21,000 45,000 $434,350 $434,350