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Accounting Worksheet Problems and Solutions
Jadon & Co. is a manufacturer of various types of dyes for industrial use. Following is the unadjusted trial balance as on 30 June, 2018:
Debit | Credit | |
Cash | 20,000 | |
Debtors | 48,000 | |
Opening Inventory | 40,000 | |
Prepaid insurance | 16,000 | |
IT Equipment | 200,000 | |
Allowance for depreciation – IT Equipment | 40,000 | |
Creditors | 32,000 | |
Capital | 209,200 | |
Drawings | 24,000 | |
Revenue | 320,000 | |
Discount given to customers | 16,000 | |
Purchases | 160,000 | |
Return and allowances | 20,000 | |
Carriage-in | 23,200 | |
Advertising expense | 34,000 | |
Payroll expense | 40,000 | |
621,200 | 621,200 |
Additional information for adjustments:
- Provide allowance for depreciation on IT Equipment $ 8,000.
- Provide allowance for bad debts @ 10 {1bb28fb76c3d282be6cfd0391ccf1d9529baae691cd895e2d45215811b51644c} of ending balance of debtors.
- Insurance expired $ 10,000.
- Prepaid advertising $ 4,800.
- Outstanding payroll $ 8,000.
- Closing inventory on 30 June, 2018 $ 60,000.
Required:
You are required to produce ten column worksheet.
Solution
Particulars | Trial Balance | Adjustments | Adjusted T. B | Income Stat. | Balance Sheet | |||||
Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | |
Cash | 20,000 | 20,000 | 20,000 | |||||||
Accounts receivable | 48,000 | 48,000 | 48,000 | |||||||
Inventory | 40,000 | 40,000 | 40,000 | |||||||
Prepaid insurance | 16,000 | 10,000 | 6,000 | 6,000 | ||||||
IT Equipment | 200,000 | 200,000 | 200,000 | |||||||
Allow for dep – IT Equip. | 40,000 | 8,000 | 48,000 | 48,000 | ||||||
Creditors | 32,000 | 32,000 | 32,000 | |||||||
Capital | 209,200 | 209,200 | 209,200 | |||||||
Drawings | 24,000 | 24,000 | 24,000 | |||||||
Sales Revenue | 320,000 | 320,000 | 320,000 | |||||||
Sales Discounts | 16,000 | 16,000 | 16,000 | |||||||
Purchases | 160,000 | 160,000 | 160,000 | |||||||
Purchase returns | 20,000 | 20,000 | 20,000 | |||||||
Carriage-in | 23,200 | 23,200 | 23,200 | |||||||
Advertising expense | 34,000 | 4,800 | 29,200 | 29,200 | ||||||
Payroll expense | 40,000 | 8,000 | 48,000 | 48,000 | ||||||
Insurance expense | 10,000 | 10,000 | 10,000 | |||||||
Depreciation expense | 8,000 | 8,000 | 8,000 | |||||||
Payroll payable | 8,000 | 8,000 | 8,000 | |||||||
Prepaid advertising | 4,800 | 4,800 | 4,800 | |||||||
Bad debt expense | 4,800 | 4,800 | 4,800 | |||||||
Allow. For bad debts | 4,800 | 4,800 | 4,800 | |||||||
Closing inventory | 60,000 | 60,000 | ||||||||
Net income | 60,800 | 60,800 | ||||||||
621,200 | 621,200 | 35,600 | 35,600 | 642,000 | 642,000 | 400,000 | 400,000 | 362,800 | 362,800 |