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, 2023.
2. A physical count of supplies shows $1,310 on hand on January 31, 2024.
3. The building has an estimated useful life of 50 years. The equipment has an estimated useful life of nine years.
4. The mortgage payable has a 5% interest rate. Interest is paid on the first day of each month for the previous month’s interest.
5. By January 31, 2024, $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, 2024.

Taking It Further

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:

Cash Accounts receivable Prepaid insurance ELBOW CYCLE REPAIR SHOP Trial Balance January 31, 2024 Debit $ 3,200 6,630 6,420 Credit