5-1

Chapter

5 Adjustments and the Worksheet Section 1: The Worksheet Section Objectives

McGraw-Hill

1.

Complete a trial balance on a worksheet.

2.

Prepare adjustments for unrecorded business transactions.

© 2009 The McGraw-Hill Companies, Inc. All rights reserved.

Complete a trial balance on a worksheet

Objective 1 The worksheet has an Account Name column

The worksheet also has five sections.

Each section has two columns.

JT’s Consulting Services Worksheet Month Ended December 31, 2010 TRIAL BALANCE ACCOUNT NAME

DEBIT

CREDIT

ADJUSTMENTS DEBIT

CREDIT

5-3

ADJ. TRIAL BAL.

INCOME STMT.

DEBIT

DEBIT

CREDIT

CREDIT

BALANCE SHEET DEBIT

CREDIT

Complete the Trial Balance section in four steps 1. Enter the general ledger account names. 2. Transfer the general ledger account balances to the Debit and Credit columns of the Trial Balance section. 3. Total the Debit and Credit columns to prove that the trial balance is in balance. 4. Place a double rule under each Trial Balance column to show that the work in that column is complete.

5-4

Step 1: Enter the general ledger account names. JT’s Consulting Services Step 1: Enter the general ledger account names. Worksheet Month Ended December 31, 2010 TRIAL BALANCE

ACCOUNT NAME

DEBIT

Cash

ADJUSTMENTS

ADJ. TRIAL BAL.

Carter Consulting Service DEBIT CREDIT DEBIT Worksheet Month Ended December 31, 2004 CREDIT

CREDIT

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT

CREDIT

CREDIT

Accounts Receivable Supplies

ACCOUNT NAME

Prepaid Rent Cash Equipment

TRIAL BALANCE DEBIT

Accum. Depr.—Equip.

Accounts Payable Jason Taylor, Cap.

CREDIT

ADJUSTMENTS DEBIT

CREDIT

ADJ. TRIAL BAL. DEBIT

CREDIT

INCOME STATEMENT BALANCE SHEET DEBIT

CREDIT

DEBIT

CREDIT

These four new accounts will be used for the adjustments.

Jason Taylor, Draw.

Fees Income Salaries Expense Utilities Expense Supplies Expense Rent Expense Depr. Exp.—Equip. Totals

**If additional new expense accounts are needed in the adjustment process, add them to the bottom of the ACCOUNT NAME column. 5-5

Step 2: Transfer the general ledger account balances to the Debit and Credit columns of the Trial Balance section.

JT’s Consulting Services Worksheet Month Ended December 31, 2010 TRIAL BALANCE ACCOUNT NAME

Cash

DEBIT

CREDIT

ADJUSTMENTS

ADJ. TRIAL BAL.

DEBIT

DEBIT

CREDIT

CREDIT

INCOME STMT. DEBIT

CREDIT

BALANCE SHEET DEBIT

CREDIT

83,500

Accounts Rec. 101 Cash ACCOUNT ____________________________ ACCOUNT NO. ________

Supplies Prepaid Rent

BALANCE

Equipment

DATE

Accum. Depr.

2010 Nov. 30

DESCRIPTION

POST REF.

DEBIT

CREDIT

DEBIT

64,400 65,000

Bal. forward

Accounts Pay.

Dec. 31

J2

26,000

91,000

J. Taylor, Cap.

Dec. 31

J2

4,000

95,000

Dec. 31

J2

7,000

88,000

Dec. 31

J2

500

87,500

Dec. 31

J2

4,000

83,500

J. Taylor, Draw. 5-6

CREDIT

Step 3: Total the Debit and Credit columns to prove that the trial balance is in balance. ACCOUNT NAME

Cash

TRIAL BALANCE

ADJUSTMENTS

DEBIT

DEBIT

5,000

Supplies

3,000

Equipment

7,000 22,000

Accounts Payable

7,000

Jason Taylor, Cap.

90,000 4,000

Fees Income Salaries Expense Utilities Expense

35,000 7,000 500

Supplies Expense Rent Expense Depr. Exp.—Equip. Totals

BALANCE SHEET

DEBIT

DEBIT

DEBIT

CREDIT

CREDIT

Step 4: Place a double rule under each Trial Balance column to show that the work in that column is complete.

Accum. Depr.—Equip.

Jason Taylor, Draw.

CREDIT

INCOME STMT.

83,500

Accounts Receivable Prepaid Rent

CREDIT

ADJ. TRIAL BAL.

132,000 132,000 5-7

CREDIT

Objective 2

ACCOUNT NAME

Cash

TRIAL BALANCE

ADJUSTMENTS

ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT

DEBIT

DEBIT

DEBIT

5,000

Supplies

3,000

Equipment

CREDIT

CREDIT

CREDIT

CREDIT

83,500

Accounts Receivable Prepaid Rent

Prepare adjustments for unrecorded business transactions

7,000 22,000

Accum. Depr.—Equip. Accounts Payable

7,000

Jason Taylor, Cap.

90,000

Jason Taylor, Draw.

4,000

Fees Income Salaries Expense Utilities Expense

35,000 7,000 500

These adjusting entries are first entered in the Adjustments section of the worksheet.

Supplies Expense Rent Expense Depr. Exp.—Equip. Totals

132,000 132,000 5-8

CREDIT

The Supplies Adjustment JT’s Consulting Services began the month with $3,000 in supplies. At the end of the month, $2,000 in supplies remained. QUESTION:

What dollar amount of supplies was used during the month?

$3,000 - 2,000

ANSWER:

$1,000

5-9

JT’s Consulting Services Worksheet Month Ended December 31, 2010 ACCOUNT NAME

Cash

TRIAL BALANCE

ADJUSTMENTS

ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT

DEBIT

DEBIT

DEBIT

5,000

Supplies

3,000

Equipment

CREDIT

83,500

Accounts Receivable Prepaid Rent

CREDIT

(a)

1,000

7,000 22,000

Accum. Depr.—Equip. Accounts Payable

7,000

Jason Taylor, Cap.

90,000

Jason Taylor, Draw.

4,000

Fees Income Salaries Expense Utilities Expense

35,000 7,000 500

Supplies Expense

(a)

1,000

Rent Expense Depr. Exp.—Equip. Totals

132,000 132,000 5-10

CREDIT

CREDIT

CREDIT

The Prepaid Adjustment On November 20, 2010, JT’s Consulting Services paid $7,000 for the December and January rent. As of December 31, 2010, one month’s rent had already been used up. QUESTION:

What dollar amount of rent was used during the month of December?

$7,000 - 3,500

ANSWER:

$3,500

5-11

JT’s Consulting Services Worksheet Month Ended December 31, 2010 ACCOUNT NAME

Cash

TRIAL BALANCE

ADJUSTMENTS

ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT

DEBIT

DEBIT

DEBIT

5,000

Supplies

3,000

Equipment

CREDIT

83,500

Accounts Receivable Prepaid Rent

CREDIT

(a)

7,000 22,000

(b)

1,000

3,500

Accum. Depr.—Equip. Accounts Payable

7,000

Jason Taylor, Cap.

90,000

Jason Taylor, Draw.

4,000

Fees Income Salaries Expense Utilities Expense

35,000 7,000 500

Supplies Expense

(a)

1,000

Rent Expense

(b)

3,500

Depr. Exp.—Equip. Totals

132,000 132,000 5-12

CREDIT

CREDIT

CREDIT

Depreciation The cost is recorded as an asset and charged to expense over the time the asset is used for the business.

$ ASSET

Expense

This expense is called depreciation.

Expense Jan. 2008

Expense 5-13

There are several methods to calculate depreciation. JT’s Consulting Services uses the straight-line method. QUESTION:

What is straight-line depreciation? ANSWER:

Straight-line depreciation (S/L) allocates an asset’s cost in equal amounts to each accounting period of its useful life. S/L depreciation =

Cost - salvage value Estimated months of useful life 5-14

Calculating Depreciation JT’s Consulting Services purchased equipment in November, 2010. · Cost = $22,000 · Useful life = 5 yrs or 60 months (5 yrs x 12 months) · Salvage value = $0 QUESTION: What dollar amount of depreciation expense should be recorded for the month?

Cost - salvage value Estimated months of useful life

ANSWER:

$22,000 - $0

60 months

$367

5-15

Adjustment for Depreciation Instead of decreasing the asset account directly, the adjustment for depreciation is recorded in a contra account named Accumulated Depreciation—Equipment. Accumulated Depreciation— Equipment

Equipment +

+

Contra asset account has a normal credit balance

Asset account has a normal debit balance

5-16

JT’s Consulting Services Worksheet Month Ended December 31, 2010 ACCOUNT NAME

Cash

TRIAL BALANCE

ADJUSTMENTS

ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT

DEBIT

DEBIT

DEBIT

5,000

Supplies

3,000

Equipment

CREDIT

(a)

7,000 22,000

(b)

Accum. Depr.—Equip. 7,000

Jason Taylor, Cap.

90,000

Utilities Expense

367

When all adjustments are entered, total and rule the Adjustments columns.

35,000 7,000 500

Supplies Expense

(a)

1,000

Rent Expense

(b)

3,500

Depr. Exp.—Equip.

(c)

367

Totals

CREDIT

3,500

4,000

Fees Income Salaries Expense

CREDIT

1,000

(c)

Accounts Payable Jason Taylor, Draw.

CREDIT

83,500

Accounts Receivable Prepaid Rent

CREDIT

132,000 132,000

4,867

4,867 5-17

Book Value Accumulated Depreciation— Equipment

Equipment 22,000

367

Original cost of equipment Record of all depreciation taken on equipment

Book value = Original cost – Accumulated depreciation = 22,000 – 367 = 21,633

5-18

Chapter

5 Adjustments and the Worksheet Section 2: Financial Statements Section Objectives

McGraw-Hill

3.

Complete the worksheet.

4.

Prepare an income statement, statement of owner's equity, and balance sheet from the completed worksheet.

5.

Journalize and post the adjusting entries.

© 2010 The McGraw-Hill Companies, Inc. All rights reserved.

The Accounting Cycle Step 1 Analyze transactions

Step 2 Journalize the data about transactions

Step 3 Post the data about transactions

Step 4 Prepare a worksheet Step 5 Prepare financial statements

Step 9 Interpret the financial information

Step 7 Record closing entries

Step 8 Prepare a postclosing trial balance

5-20

Step 6 Record adjusting entries

Objective 3

Complete the worksheet

You have already seen how to prepare the first two sections of a worksheet: 

Trial Balance



Adjustments

You will now learn how to complete a worksheet.

Preparing a worksheet is the fourth step of the accounting cycle. 5-21

Step 1: Combine the figures from the Trial Balance section and the Adjustments section. Record the results in the Adjusted Trial Balance columns. TRIAL BALANCE

ADJUSTMENTS

ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT

DEBIT

DEBIT

DEBIT

ACCOUNT NAME CREDIT

CREDIT

Cash

83,500

Accounts Receivable

45,000

Supplies

3,000

(a)

1,500

7,000 22,000

(b)

3,500

(c)

367

Prepaid Rent Equipment Accum. Depr.—Equip. Accounts Payable

7,000

Jason Taylor, Cap.

90,000

Jason Taylor, Draw.

4,000

Fees Income Salaries Expense Utilities Expense

35,000 7,000 500

Supplies Expense

(a)

1,000

Rent Expense

(b)

3,500

Depr. Exp.—Equip.

(c)

367 4,867

Totals

132,000 132,000

4,867 5-22

CREDIT

CREDIT

CREDIT

The accounts that do not have adjustments are extended from the Trial Balance section to the Adjusted Trial Balance section. TRIAL BALANCE

ADJUSTMENTS

ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT

DEBIT

DEBIT

DEBIT

ACCOUNT NAME CREDIT

CREDIT

83,500

83,500

Accounts Receivable

5,000

5,000

Supplies

3,000

(a)

1,000

7,000 22,000

(b)

3,500

Cash

Prepaid Rent Equipment

CREDIT

22,000

Accum. Depr.—Equip.

(c)

367

Accounts Payable

7,000

7,000

Jason Taylor, Cap.

90,000

90,000

Jason Taylor, Draw.

4,000

Fees Income Salaries Expense Utilities Expense

4,000 35,000

35,000

7,000 500

7,000 500

Supplies Expense

(a)

1,000

Rent Expense

(b)

3,500

Depr. Exp.—Equip.

(c)

367 4,867

Totals

120,000 120,000

4,867 5-23

CREDIT

CREDIT

The Supplies account has a $3,000 debit balance in the Trial Balance section and a $1,000 credit in the Adjustments section. ($3,000 debit and $1,000 credit = $2,000) TRIAL BALANCE

ADJUSTMENTS

ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT

DEBIT

DEBIT

DEBIT

ACCOUNT NAME CREDIT

CREDIT

83,500

83,500

Accounts Receivable

5,000

5,000

Supplies

3,000

Cash

Prepaid Rent Equipment

(a) 1,000

7,000 22,000

(b)

CREDIT

2,000

3,500 22,000

Accum. Depr.—Equip.

(c)

367

367

Accounts Payable

7,000

7,000

Jason Taylor, Cap.

90,000

90,000

Jason Taylor, Draw.

4,000

Fees Income Salaries Expense Utilities Expense

4,000 35,000

35,000

7,000 500

7,000 500

Supplies Expense

(a)

1,000

Rent Expense

(b)

3,500

Depr. Exp.—Equip.

(c)

367 4,867

Totals

132,000 132,000

4,867 5-24

CREDIT

CREDIT

Step 2: Total the Debit and Credit columns in the Adjusted Trial Balance section. Confirm that debits equal credits. TRIAL BALANCE

ADJUSTMENTS

ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT

DEBIT

DEBIT

DEBIT

ACCOUNT NAME CREDIT

CREDIT

83,500

83,500

Accounts Receivable

5,000

5,000

Supplies

3,000

Cash

Prepaid Rent Equipment

(a) 1,000

7,000 22,000

(b)

3,500

CREDIT

2,000 3,500 22,000

Accum. Depr.—Equip.

(c)

367

367

Accounts Payable

7,000

7,000

Jason Taylor, Cap.

90,000

90,000

Jason Taylor, Draw.

4,000

Fees Income Salaries Expense Utilities Expense

4,000 35,000

35,000

7,000 500

7,000 500

Supplies Expense

(a)

1,000

1,000

Rent Expense

(b)

3,500

3,500

Depr. Exp.—Equip.

(c)

367 4,867

367 4,867 132,367 132,367 5-25

Totals

132,000 132,000

CREDIT

CREDIT

For accounts that appear on the balance sheet, enter the amount in the appropriate column of the Balance Sheet section. For accounts that appear on the income statement, enter the amount in the appropriate column of the Income Statement section. TRIAL BALANCE

ADJUSTMENTS

ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT

DEBIT

DEBIT

DEBIT

ACCOUNT NAME CREDIT

CREDIT

83,500

83,500

Accounts Receivable

5,000

5,000

Supplies

3,000

Cash

Prepaid Rent Equipment

(a) 1,000

7,000 22,000

(b)

3,500

CREDIT

2,000 3,500 22,000

Accum. Depr.—Equip.

(c)

367

367

Accounts Payable

7,000

7,000

Jason Taylor, Cap.

90,000

90,000

Jason Taylor, Draw.

4,000

Fees Income Salaries Expense Utilities Expense

4,000 35,000

35,000

7,000 500

7,000 500

Supplies Expense

(a)

1,000

1,000

Rent Expense

(b)

3,500

3,500

Depr. Exp.—Equip.

(c)

367 4,867

367 4,867 132,367 132,367 5-26

Totals

132,000 132,000

CREDIT

CREDIT

After all the account balances are transferred to the financial statement sections, total the Debit and Credit columns. TRIAL BALANCE

ADJUSTMENTS

ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT

DEBIT

DEBIT

DEBIT

ACCOUNT NAME CREDIT

CREDIT

CREDIT

CREDIT

83,500

83,500

83,500

Accounts Receivable

5,000

5,000

5,000

Supplies

3,000

2,000 3,500

2,000

22,000

22,000

Cash

Prepaid Rent Equipment

(a) 1,000

7,000 22,000

(b)

Accum. Depr.—Equip.

(c)

3,500 367

CREDIT

3,500 367

Accounts Payable

7,000

7,000

367 7,000

Jason Taylor, Cap.

90,000

90,000

90,000

Jason Taylor, Draw.

4,000

Fees Income Salaries Expense Utilities Expense

4,000 35,000

4,000 35,000

7,000 500

35,000

7,000 500

7,000 500

Supplies Expense

(a)

1,000

1,000

1,000

Rent Expense

(b)

3,500

3,500

3,500

Depr. Exp.—Equip.

(c)

367 4,867

Totals

132,000 132,000

367 367 4,867 132,367 132,367 12,367 35,000 120,000 97,367 5-27

Subtract the smaller total from the larger total in the Income Statement section to find the Net Income or Net Loss.

ACCOUNT NAME

TRIAL BALANCE

ADJUSTMENTS

ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT

DEBIT

DEBIT

DEBIT

CREDIT

83,500 Cash 5,000 Accounts Receivable 3,000 Supplies Prepaid Rent 7,000 Equipment 22,000 Accum. Depr.—Equip. 7,000 Accounts Payable Jason Taylor, Cap. 90,000 4,000 Jason Taylor, Draw. Fees Income 35,000 Salaries Expense 7,000 Utilities Expense 500 Supplies Expense Rent Expense Depr. Exp.—Equip. Totals 132,000 132,000 Net Income

CREDIT

83,500 5,000 (a) 1,000 2,000 3,500 (b) 3,500 22,000 (c) 367

CREDIT

CREDIT

83,500 5,000 2,000 3,500 22,000 367 7,000 90,000

367 7,000 90,000

4,000

4,000 35,000

(a) 1,000

3,500 (c) 367 4,083 (b)

7,000 500 1,000 3,500 367 4,083 120,583 120,583

5-28

CREDIT

35,000

7,000 500 1,000 3,500 367 12,367

35,000 120,000 97,367

If the credit total is more than the debit total, the firm has net income. . . Enter the amount on the Net Income line. (35,000 – 12,367 = 22,633) ACCOUNT NAME

TRIAL BALANCE

ADJUSTMENTS

ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT

DEBIT

DEBIT

DEBIT

CREDIT

83,500 Cash 5,000 Accounts Receivable 3,000 Supplies Prepaid Rent 7,000 Equipment 22,000 Accum. Depr.—Equip. 7,000 Accounts Payable Jason Taylor, Cap. 90,000 4,000 Jason Taylor, Draw. Fees Income 35,000 Salaries Expense 7,000 Utilities Expense 500 Supplies Expense Rent Expense Depr. Exp.—Equip. Totals 132,000 132,000 Net Income

CREDIT

83,500 5,000 (a) 1,000 2,000 3,500 (b) 3,500 22,000 (c) 367

CREDIT

CREDIT

83,500 5,000 2,000 3,500 22,000 367 7,000 90,000

367 7,000 90,000

4,000

4,000 35,000

(a) 1,000

3,500 (c) 367 4,083 (b)

7,000 500 1,000 3,500 367 4,083 120,583 120,583

5-29

CREDIT

35,000

7,000 500 1,000 3,500 367 12,367 22,633

35,000 120,000 97,367

Total the Income Statement and the Balance Sheet sections.

ACCOUNT NAME

TRIAL BALANCE

ADJUSTMENTS

ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT

DEBIT

DEBIT

DEBIT

CREDIT

83,500 Cash 5,000 Accounts Receivable 3,000 Supplies Prepaid Rent 7,000 Equipment 22,000 Accum. Depr.—Equip. 7,000 Accounts Payable Jason Taylor, Cap. 90,000 4,000 Jason Taylor, Draw. Fees Income 35,000 Salaries Expense 7,000 Utilities Expense 500 Supplies Expense Rent Expense Depr. Exp.—Equip. Totals 132,000 132,000 Net Income

CREDIT

83,500 5,000 (a) 1,000 2,000 3,500 (b) 3,500 22,000 (c) 367

CREDIT

CREDIT

83,500 5,000 2,000 3,500 22,000 367 7,000 90,000

367 7,000 90,000

4,000

4,000 35,000

(a) 1,000

3,500 (c) 367 4,083 (b)

7,000 500 1,000 3,500 367 4,083 120,583 120,583

5-30

CREDIT

35,000

7,000 500 1,000 3,500 367 12,367 35,000 120,000 97,367 22,633 22,633 35,000 35,000 120,000 120,000

The Accounting Cycle Step 1 Analyze transactions

Step 2 Journalize the data about transactions

Step 3 Post the data about transactions

Step 4 Prepare a worksheet Step 5 Prepare financial statements

Step 9 Interpret the financial information

Step 7 Record closing entries

Step 8 Prepare a postclosing trial balance

5-31

Step 6 Record adjusting entries

Objective 4

Prepare financial statements from the worksheet JT’s Consulting Services Income Statement Month Ended December 31, 2010

Revenue Fees Income

$35,000

Expenses Salaries Expense

$7,000

Utilities

500

Supplies Expense

1,000

Rent Expense

3,500

Depreciation Expense - Equipment Total Expenses

367 $12,367

Net Income for the Month

$22,633

5-32

JT’s Consulting Services Statement of Owner’s Equity Month Ended December 31, 2010 Jason Taylor, Capital, December 1, 2010 Net Income for December

$ 90,000 $22,633

Less Withdrawals for December

4,000

Increase in Capital

18,633

Jason Taylor, Capital, December 31, 2010

5-33

$108,633

JT’s Consulting Services Balance Sheet December 31, 2010 Liabilities Accounts Payable

$

Owner’s Equity Jason Taylor, Capital Total Liabilities and Owner’s Equity

108,633.00 $ 115,633.00

Assets Cash $83,500.00 Accounts Receivable 5,000.00 Supplies 2,000.00 Prepaid Rent 3,500.00 Equipment 22,000.00 Total Assets $ 115,633.00

The balance sheet in Chapter 4 was prepared using the account form.

5-34

7,000.00

JT’s Consulting Services Balance Sheet Month Ended December 31, 2010 Assets Cash

$83,500

Accounts Receivable

5,000

Supplies

2,000

Prepaid Rent

3,500

Equipment

22,000

Less Accumulated Depreciation

367

Total Assets

21,633 $115,633

Liabilities and Owner’s Equity Liabilities Accounts Payable

$ 7,000

Owner’s Equity Jason Taylor, Capital

108,633

Total Liabilities and Owner’s Equity

$115,633

5-35

Journalize and post the adjusting entries

Objective 5

The worksheet is NOT A A

financial statement permanent part of the accounting record

It is only a tool.

5-36

The Accounting Cycle Step 1 Analyze transactions

Step 2 Journalize the data about transactions

Step 3 Post the data about transactions

Step 4 Prepare a worksheet Step 5 Prepare financial statements

Step 9 Interpret the financial information

Step 7 Record closing entries

Step 8 Prepare a postclosing trial balance

5-37

Step 6 Record adjusting entries

QUESTION:

What adjustments must JT’s Consulting Services record for the month?

ANSWER:

(a) Adjustment for supplies used (b) Adjustment for expired rent (c) Adjustment for depreciation

5-38

GENERAL JOURNAL DATE

ACCOUNT DATE

2010 Dec. 31

POST. REF .

DESCRIPTION

PAGE

DEBIT

2010 Adjusting Entries Dec. 31 Supplies Expense Supplies

517 121

1000.00

31 Rent Expense Prepaid Rent

520 137

3,500.00

31 Depr. Expense–Equipment Accum. Depr.–Equipment

523 142

367.00

Supplies Expense DESCRIPTION

Adjusting

POST. REF.

J3

3

CREDIT

1000.00

3,500.00

367.00

ACCOUNT NO. DEBIT

1000.00

5-39

CREDIT

517

BALANCE DEBIT CREDIT

1000.00

Thank You for using

College Accounting, 12th Edition

Price • Haddock • Farina

5-40