Description
Cash
A/R
A/P
Prepaid Rent
Unearned Salaries
Machinery
Sales
Dr
Cr
15,000
10,000
15,000
15,000
15,000
50,000
15,000
Capital
45,000
Adjustments are prepared at the end of year.
1. Revenue earned but not received 36,000
2. Accrued Rent Expenses 18000
3. Prepaid rent is for 15 months . Paid on jan1,2010.
4. 10,000 revenue is earned out of un-earned salaries revenue..
5. Machinery useful life is 24 years and its residual vale is 2000.
KARDAN INSTITUTE OF HIGHER EDUCATION
Trial Balance of ABC & Co For The Period Ended Dec,2010
DESCRIPTION
DR
CASH
20,000
Prepaid Rent
30,000
Rent expenses
CR
3000
Prepaid Salaries
12,000
Inventory
7000
Machinery
60,000
Account payable
28,000
Un-earned advertisement revenue
22,000
Sales
40,000
Capital
42,000
TOTAL
1,32,000
1,32,000
KARDAN INSTITUTE OF HIGHER EDUCATION
OTHER RELEVANT INFORMATION
1) Prepaid rent is for 2-years and made on january1,2010.
2) Prepaid salaries is for one year, paid on 1st July 2010.
3) Machinery useful life is 15-years.
4) Advertisement revenue is earned 15,000 for current
year.
KARDAN INSTITUTE OF HIGHER EDUCATION
Trial Balance For The Period……………
Account Title
Cash
Accounts receivable
Supplies
Prepaid rent
Furniture
Accumulated depreciation
Accounts payable
Salary Payable
Unearned service revenue
Income tax payable
Common stock
Retained earnings
Dividends
Service revenue
Rent expense
Salary expense
Supplies expense
Depreciation expense
Utilities expense
Income tax expense
Trial Balance
Debit
Credit
24,800
2,250
700
3,000
16,500
Adjustments
Adjd.Trial Balance
13,100
450
20,000
11,250
3,200
7,000
950
400
KARDAN INSTITUTE OF HIGHER EDUCATION
Information For Adjustments
5
(a) Prepaid rent expired, $1000.
(b) Supplies on hand, $400 (balance before adjustment
equals $700).
(c) Depreciation on furniture, $275.
(d) Accrued salary expense, $950.
(e) Accrued service revenue, $250.
(f) Amount of unearned service revenue that has been
earned, $150.
(g) Accrued income tax expense, $540.
Accrual Accounting and the Financial Statements
5
Trial Balance For the Period Ended 31ST Dec.2010
DESCRIPTION
DR
CR
Cash
50,000
A/R
30,000
A/P
20,000
Pre-paid rent
18,000
Pre-paid Salaries
12,000
Un-earned Advertisement revenue
50,000
Building
80,000
Office supplies
40,000
Capital
100,000
Advertisement Revenue
60,000
TOTAL
1- Accrued Rent Expenses 12,000.
2- Accrued Salaries Revenues 50,000.
2,30,000
2,30,000
KARDAN INSTITUTE OF HIGHER EDUCATION
Trial Balance Of ABC & Co
For the Period Ended 31.Dec 2010
Description
DR
($)
Cash
30,000
Inventory
15,000
A/R
10,000
Prepaid Insurance
18,000
Prepaid Salaries
9,000
Building
74,000
Land
100,000
Car
10,000
CR
($)
Unearned Advertisement Revenues
48,000
Unearned Rent Revenue
60,000
A/P
20,000
Capital
138,000
TOTAL
266,000
266,000
ADJUSTMENT REQUIRED AT YEAR END 31,DEC.2010
1) Prepaid insurance is for one year paid on 1st April 2010.
2) Prepaid salaries is for one year paid on 1st January 2010.
3) Building useful life is 35 years and its residual value is
$ 4000.Building is acquired in January 2010.
1) Car useful life is 10 years and is purchased in January 2010.
2) Unearned Advertisement revenue is received on 31st March 2010
for 2 years.
3) Rent revenue of $30,000 is earned out of total unearned rent
revenue.
4) Accrued rent Revenue was $15,000 & Accrued Salaries expenses
$ 10,000 for the period .
KARDAN INSTITUTE OF HIGHER EDUCATION
TRIAL BALANCE FOR YEAR ENDED DEC 31,2010
DESCRIPTION
DR
Cash
20,000
A/R
15,000
Office Supplies
30,000
Furniture
50,000
Prepaid Rent
20,000
Rent Expenses
5000
CR
Unearned Salaries Revenue
Salaries Revenue
25,000
10,000
Capital
105,000
TOTAL
140,000
140,000
Prepared adjusted Trial Balance at year ended 31st Dec.2010.
1)
2)
3)
4)
5)
6)
Closing balance of Office supplies is $ 7000.
Useful life of furniture is 24 years and its residual
value is $ 2000.
Prepaid rent is for one year paid on 1st July 2010.
Earned $ 10,000 Salaries Revenue out of Unearned revenue.
Accrued Advertising Expenses are $ 5000.
Accrued salaries revenue is $ 7000.