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, 2024.
3. Accrued salaries payable at October 31, 2024, 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, 2024.
5. The owner, H. Burke, invested $2,000 cash in the business on December 28, 2023.

Instructions
Prepare a work sheet for the year ended October 31, 2024.

Taking It Further

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

Transcribed Image Text:

SILVER RIDGE PLUMBING Trial Balance October 31, 2024 Cash Supplies Equipment Accumulated depreciation-equipment Vehicles Accumulated depreciation-vehicles Accounts payable Notes payable H. Burke, capital H. Burke, drawings Service revenue Repairs expense Insurance expense Interest expense Rent expense Salaries expense Debit $ 35,420 6,000 140,000 110,000 36,000 28,038 9,500 3,392 21,000 45,000 $434,350 Credit $ 42,000 48,125 7,950 60,000 75,750 200,525 $434,350