Bill Goat owns Bill's Animal Hospital. The company completes the worksheet and adjusting entries on a yearly basis. The unadjusted trial balance is completed in the worksheet below.

Instructions: (A) Enter the following adjustment amounts into the worksheet below.

1. The insurance policy was purchased for $4,500 for one year, starting September of this year.

2. The interest rate on the Note Payable is 6%. It was signed effective June 1 of this year.

3. $1,000 of the Unearned Revenue has been earned during the month.

4. Wages of $350 are owed at the end of the month.

5. Supplies on hand at the end of the month is $600.

6. Depreciation is calculated at $550 per month.

(C) Complete the remaining columns on the worksheet.

 

Transcribed Image Text:

ACCOUNT TITLE Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation Equipment Accounts Payable Unearned Revenue Interest Payable Salaries & Wages Payable Long-term Notes Payable Owner's Captial Owner's Drawings Service Revenue Advertising Expense Depreciation Expense Insurance Expense Interest Expense Rent Expense Salaries & Wages Expense UNADJUSTED TRIAL BALANCE DEBIT 21,700 3,320 1,950 3,375 53,200 4,500 5,600 6,050 1,125 900 36,000 35,600 CREDIT 5,750 2,800 4,000 900 30,000 34,500 102,500 Bill's Animal Hospital Worksheet December 31, 2022 ADJUSTMENTS DEBIT CREDIT 1,125 ADJUSTED TRIAL BALANCE DEBIT 3,375 CREDIT INCOME STATEMENT CREDIT DEBIT BALANCE SHEET DEBIT CREDIT 3,375 ACCOUNT TITLE Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation Equipment Accounts Payable Unearned Revenue Interest Payable Salaries & Wages Payable Long-term Notes Payable Owner's Captial Owner's Drawings Service Revenue Advertising Expense Depreciation Expense Insurance Expense Interest Expense Rent Expense Salaries & Wages Expense UNADJUSTED TRIAL BALANCE DEBIT 21,700 3,320 1,950 3,375 53,200 4,500 5,600 6,050 1,125 900 36,000 35,600 CREDIT 5,750 2,800 4,000 900 30,000 34,500 102,500 Bill's Animal Hospital Worksheet December 31, 2022 ADJUSTMENTS DEBIT CREDIT 1,125 ADJUSTED TRIAL BALANCE DEBIT 3,375 CREDIT INCOME STATEMENT CREDIT DEBIT BALANCE SHEET DEBIT CREDIT 3,375

Answer rating: 100% (QA)

I am unable to complete the adjustments directly into the worksheet as youve displayed but I can guide you through the steps required to make the adju... View the full answer