1 Adjustments and the Worksheet Instructions 1. Using the following information prepare the year-end adjusting entries and complete the worksheet 2. Journalize the adjusting entries. 3. Using the worksheet, prepare the complete set of financial statements for UR Secure at the year-end for 2020. The date is December 31, 2020 a) A car insurance policy examination shows $700 has expired. b) A physical count of the inventory for office supplies shows a remaining value of $320. Record the used amount. c) The estimated amortization of office equipment is $1,200. d) The payroll of the company is done each Friday (for the previous 5 days). December 31 is on Tuesday. There are three employees and each employee makes $170 a day. An adjusting entry must be made to record the accrued salary for the days accrued for these employees. e) The car Mr. Preston uses to drive to the business of his clients cost $30,000. It is estimated that the car will last 4 years and will be sold for $10,000. Record depreciation for one year for the car. f) On November 1, Mr. Preston paid $10,000 for 5 months' rent (November, December, January, February, & March) in advance. It is now December 31. Record the amount of rent expired. UR Sescure Worksheet December 31, 2020 Adjustments Debit Credit Adjusted Trial Balance Debit Credit Income Statement Debit Credit Balance Sheet Debit Credit Unadjusted Trial Balance Debit Credit 35,000.00 13,260.00 850.00 1,200.00 10.000.00 8,500.00 30,000.00 120,000.00 16.580.00 Cash Accounts Receivable Office Supplies Prepaid Insurance, Automobile Prepaid Rent Office Equipment Acc Amortization. Office Equipment Automobile Accumulated Amortization Automobile Building Accounts Payable Salaries Payable Owner Capital Owner, Withdrawals Securities Fees Earned Investigating Fees Earned Amortization Expense, Office Equipment Amortization Expense, Automobile Salaries Expense Gas Expense Insurance Expense Office Supplies Expense Rent Expense TOTALS 163.105.00 7,500.00 36.950.00 45.625.00 28.750.00 7,200.00 $262.260.00 $262.260.00 |