TRIAL BALANCE Asim Corporation Trial Balance Description Debit

TRIAL BALANCE

Asim Corporation Trial Balance Description Debit Credit ----------------------------------------------------------------------------------------------------------------- Cash Supplies Accounts Receivable Note Receivable Inventory Prepaid Insurance Office Equipment Accounts Payable Unearned Service Revenue Common Stock Dividends Service Revenue Salaries Expense $46, 500 4, 000 15, 000 10, 000 14, 000 12, 000 20, 000 14, 000 18, 000 40, 000 55, 000 ---------------------------------------------------------------------------------------------------------------- $127, 000

Prepaid Expenses On April 1, Asim paid $12, 000 for a one-year insurance policy. Original Entry: Prepaid Insurance (debit) Cash (credit) Adjusting Entry (End of year): Insurance Expense (debit) Prepaid Insurance (credit) Calculation: $12, 000 x (9/12) = $9, 000 $12, 000 $9, 000

Prepaid Expenses - Depreciation On January 1, Asim paid $20, 000 for equipment. The equipment has a useful life of 5 years. Original Entry: Equipment (debit) Cash (credit) Adjusting Entry: Depreciation Expense (debit) Accumulated Depreciation (credit) Calculation: $20, 000 / 5 = $4, 000 $20, 000 $4, 000

Unearned Revenues received in cash and recorded as liabilities before they are earned. On September 1, Asim received $18, 000 for rent from one of its tenants. The lease is for 1 year. Original Entry: Cash (debit) Unearned rent revenue (credit) Adjusting Entry: Unearned rent revenue (debit) Rent revenue (credit) Calculation: $18, 000 x (4/12) = $6, 000 $18, 000 $6, 000

Accrued Revenues are revenues that have been earned but not yet received in cash. Recall on October 1, 2004, Asim deposited $10, 000 in the Bank. The note is due on September 30, 2005, and carries an interest rate of 9%. Adjusting Entry: Interest Receivable (debit) Interest income (credit) Calculation: $10, 000 x 9% x (3/12) = $225

Accrued Expenses Accrued expenses are expenses that have been incurred but not yet paid in cash and there is no original entry. Asim has to pay December salaries in January. Adjusting Entry: Salary expense (debit) Salary payable (credit) $24, 000

Asim Corporation Adjusted Trial Balance December 31, 2004 Trial Balance Debit Cash Supplies Note Receivable Interest Receivable Accounts Receivable Inventory Prepaid Insurance Office Equipment Accum. Depreciation Accounts Payable Salary Payable Unearned Service Revenue Common Stock Dividends Service Revenue Salaries Expense Insurance Expense Depreciation Expense Interest Income Rent Revenue Totals Credit $46, 500 4, 000 10, 000 Adjusting Entries Debit Credit 225 15, 000 14, 000 12, 000 20, 000 9, 000 4, 000 14, 000 5, 000 $127, 000 18, 000 40, 000 55, 000 $ 127, 000 6, 000 Adj. Trial Balance Debit Credit 46, 500 4, 000 10, 000 225 15, 000 14, 000 3, 000 20, 000 24, 000 500 24, 000 9, 000 4, 000 $ 43, 225 6, 000 $ 43, 225 29, 000 4, 000 14, 000 24, 000 12, 000 40, 000 55, 000 225 6, 000 $155, 225

1. A Worksheet Paper with Unadjusted Trial Balance (from Financial Accounting by Harrison and Horngren) AIR & SEA TRAVEL, INC. Unadjusted Trial Balance April 30, 19 X 1 Accrual Accounting and the Financial Statements 99

Information for Adjustments (a) Prepaid rent expired, $1, 000. (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 1010

Worksheet Paper with Adjusted Trial Balance AIR & SEA TRAVEL, INC. Preparation of Adjusted Trial Balance April 30, 19 X 1 (from Harrison and Horngren) Accrual Accounting and the Financial Statements 1111

DESCRIPTION DR CASH 120, 000 Account Receivable 30, 000 Prepaid Rent 30, 000 Rent expenses 20, 000 Prepaid Salaries CR 7, 000 Inventory 23, 000 Machinery 60, 000 Account payable 28, 000 Bank Loan 200, 000 Un-earned advertisement revenue 22, 000 Sales 40, 000 TOTAL 12/24/2021 290, 000 KARDAN INSTITUTE OF HIGHER EDUCATION 290, 000 12

Description Cash A/R A/P Dr 15, 000 10, 000 Prepaid Rent Unearned Salaries Machinery Sales Capital 15, 000 Cr 15, 000 50, 000 15, 000 45, 000 Adjustments are prepared at the end of year. 1. 2. 3. 4. 5. Revenue earned but not received 36, 000 Accrued Rent Expenses 18000 Prepaid rent is for 15 months. Paid on jan 1, 2010. 10, 000 revenue is earned out of un-earned salaries revenue. . Machinery useful life is 24 years and its residual vale is 2000. 12/24/2021 Free template from www. brainybetty. com 13