After reading the unadjusted trial balance, create an adjusted trial balance with this information:
- company paid premium for 1 year on insurance of which 3 months was reduced prior to the current month
- balance at end of month for prepaid postage is $409.00
- truck is being depreciated over 5 years (60 months) using the straight line method (3 months have been depreciated prior to the current month)
- equipment is being depreciated over 7 years (84 months) using straight line method (3 months have been depreciated prior to the current month)
- no interest was paid on the note during the month
- no payments or advances on the note during the month
- interest rate on the note is 6% (use 12 equal months when calculating interest)
- earned and unpaid wages at end of month=$850
-no income earned that was not billed or paid
| SARAH WILSON ENTERPRISES, INC. END-OF-PERIOD WORKSHEET SEPTEMBER 30, 2016 |
| |
DEBIT BALANCES |
CREDIT BALANCES |
| Cash |
14,012.00 |
|
| Accounts Receivable |
19,876.00 |
|
| Prepaid Insurance |
4,200.00 |
|
| Prepaid postage |
635.00 |
|
| Equipment |
5,700.00 |
|
| Accumulated Depreciation-Equipment |
|
204.00 |
| Truck |
21,000.00 |
|
| Accumulated Depreciation-Truck |
|
1,050.00 |
| Notes Payable |
|
10,000.00 |
| Accounts Payable |
|
5,185.00 |
| Accrued Interest Expense |
|
|
| Accrued Payroll Expense |
|
|
| Common Stock |
|
20,000.00 |
| Retained Earnings |
|
|
| Dividends Paid |
1,000.00 |
|
| Fees Earned |
|
53,656.00 |
| Wages Expense |
11,132.00 |
|
| Depreciation Expense |
1,254.00 |
|
| Insurance Expense |
1,400.00 |
|
| Interest Expense |
100.00 |
|
| Rent Expense |
4,800.00 |
|
| Postage Expense |
484.00 |
|
| Truck Expense |
986.00 |
|
| Utilities Expense |
2,643.00 |
|
| Miscellaneous Expense |
873.00 |
|
| |
90,095.00 |
90,095.00 |