KATE COMPANY

Worksheet
FOR THE YEAR ENDED DECEMBER 31, 2016
Balance Sheet

Trial Balance Adjustments Adjusted Trial Balance Income Statement

No Account

Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
CASH 16,800 - 16,800 16,800
A/R 6,600 6,600 6,600
MERCHANDISE INVT 16,500 16,500 16,500 10,000 10,000
PREPAID INSURANCE 800 C. 200 600 600
OFFICE SUPPLIES 2,000 B. 1000 1,000 1,000
STORE EQUIPMENT 15,000 15,000 15,000
A/D STORE EQUIP 3,600 a. 1200 4,800 4,800
OFFICE EQUIPMENT 12,000 12,000 12,000
A/D OFFICE EQUIP 3,000 A. 1500 4,500 4,500
A/P 10,000 10,000 10,000
KATE, CAPITAL 26,600 26,600 26,600
KATE, DRAWING 5,000 5,000 5,000
SALES 150,000 150,000 150,000
SALES RTRN & ALLW 13,000 13,000 13,000
PURCHASES 75,000 75,000 75,000
PURCHASE RTR & ALL 4,500 4,500 4,500
PURCHASE DISCOUNT 1,500 1,500 1,500
FREIGHT IN 800 800 800
SALARIES EXPENCE 12,000 12,000 12,000
RENT EXPENCE 20,000 20,000 20,000
UTILITIES EXPENCE 2,500 F. 24000 26,500 26,500
FREIGHT OUT 1,200 1,200 1,200
TOTAL 199,200 199,200

D E STORE EQUIP A. 1200 1,200 1,200

D E OFFICE EQUIP A. 1500 1,500 1,500
OFFICESUPPLIES EXP B. 1000 1,000 1,000
INSUANCE EXP C. 200 200 200
BAD DEBT EXP E. 800 800 800
ALLOWANCE DOBT AC E. 800 800 800
UTILITIES PAYABLE F. 24000 24,000 24,000
TOTAL 28,700 28,700 226,700 226,700

169,700 166,000 67,000 70,700

3700 3700
169,700 169,700 70,700 70,700
Step 1 Undjusted tTrial balance is prepared by posting the balance of each accounts after all transaction entries (Before a

eg: Cash Accounst payable Prepaid insurance

10,000 2,000 3,000

Step 2 AdjustmentAdjusting entry is posted at year end. Adjusting entries are made for expired expenses which we prepai
which we received in advance for the service to be performed, any expenses to be payable, any revenu

eg: Prepaid insurance got balance of 3000 which was prepaid on january 1 for three years, At year end, on

Insurance expense (3000/3) 1,000

Prepaid insurance 1,000

Step 3 Adjusted trTrial balance including the adjustment amounts.

eg: Cash Accounst payable Prepaid insurance

3,000 1,000
10,000 2,000 2,000

Step 4 Income sta Only revenue and expenses are posted in income statement column from adjusted trial balance.
1) revenue > expenses, Difference should be in debit column (i.e Net income)
2) Expenses > revenue, Difference should be in credit column (i.e Net loss)

Step 5 Balance sheAssets, liabilities and equity should come in balance sheet from adjusted trial balance..
To tally the balance sheet, net income should be carried forward to credit side and if it is net loss, it sho
nsaction entries (Before adjustments & closing) for period ended has been posted in each accounts

xpenses which we prepaided, depreciation expenses for plant and machinerys, earned revenue
to be payable, any revenue which has to be receivable etc.

ee years, At year end, one year expired, so we have to pass entry for that

Insurance expense
1,000

usted trial balance.

and if it is net loss, it should be carried forward to debit side of balance sheet to equal it.