Work Sheet

The following list presents the account and balances for “The Brilliant Company” on September
30, 2013. All the accounts have normal balances.

Acc. Account Title Amount

No. (in US$)
11 Cash 2,160
12 Accounts Receivable 19,500
13 Prepaid Insurance 3,600
14 Supplies 725
15 Land 53,000
16 Building 104,750
17 Accumulated Dep-Building 47,904
18 Equipment 55,050
19 Accumulated Dep-Equipment 16,850
21 Accounts Payable 3,950
22 Unearned Rent 3,000
31 Share-Capital 70,000
32 Retained Earnings 2,550
33 Dividends 2,060
41 Service Revenue 133,833
51 Interest Expense 10,667
52 Salaries Expense 15,233
53 Advertising Expense 4,767
54 Utilities Expense 3,883
59 Miscellaneous Expense 2,692

Adjustment data on September 30 :

(a) Rent unearned on September 30, $2,760
(b) Service Revenue but unbilled on September 30, $5,350
(c) Expired insurance on September 30, $ 300
(d) Supplies had been used on September 30, $217
(e) Depreciation of building for this period, $930
(f) Depreciation of equipment for this period, $670
(g) Accrued salaries expense on September 30, $2,340

Instructions :
1) Prepare the Adjustment Entries for the transactions above
2) Complete the work sheet.
3) Prepare the Financial Statements (Income Statement, Retained Earnings Statement,
& Statement of Financial Position)
4) Prepare Closing Entries
5) Prepare Post Closing Trial Balance
 The Brilliant Company
Adjustment Entries

Date Description Ref. Debit

Sep, 2013 30 Unearned Rent 240

Rent Revenue

30 Account Receivable 5.350

Service Revenue

30 Insurance Expense 300

Prepaid Insurance

30 Supplies Expense 217

Supplies

30 Depreciation Expense - Building 930

Accummulated Depreciation - Building

30 Depreciation Expense - Equipment 670

Accummulated Depreciation - Equipment

30 Salaries Expense 2.340

Salaries Payable

1
 (in US$)
Page 01

Credit

240

5.350

300

217

930

670

2.340

2
 The Brilliant Company
Worksheet
For period ended on September 30, 2013

Statement of Financial
Trial Balance Adjustment Entries Adjusted Trial Balance Income Statement Position
NO. Account Detail
Debit Credit Debit Credit Debit Credit Debit Credit Debit

1 Cash 2.160 2.160 2.160

2 Accounts Receivable 19.500 5.350 24.850 24.850
3 Prepaid Insurance 3.600 300 3.300 3.300
4 Supplies 725 217 508 508
5 Land 53.000 53.000 53.000
6 Building 104.750 104.750 104.750
7 Accummulated Depr. - Building 47.904 930 48.834
8 Equipment 55.050 55.050 55.050
9 Accummulated Depr. - Equipment 16.850 670 17.520
10 Accounts Payable 3.950 3.950
11 Unearned Rent 3.000 240 2.760
12 Share-Capital 70.000 70.000
13 Retained Earnings 2.550 2.550
14 Dividends 2.060 2.060 2.060
15 Service Revenue 133.833 5.350 139.183 139.183
16 Interest Expense 10.667 10.667 10.667
17 Salaries Expense 15.233 2.340 17.573 17.573
18 Advertising Expense 4.767 4.767 4.767
19 Utilities Expense 3.883 3.883 3.883
20 Miscellaneous Expense 2.692 2.692 2.692

278.087 278.087

21 Rent Revenue 240 240 240

22 Insurance Expense 300 300 300
23 Supplies Expense 217 217 217
24 Depreciation Expense - Building 930 930 930
25 Depreciation Expense - Equipment 670 670 670
26 Salaries Payable 2.340 2.340

TOTAL 10.047 10.047 287.377 287.377 41.699 139.423 245.678

1
NET INCOME 97.724

TOTAL 139.423 139.423 245.678

2
atement of Financial
Position

Credit

48.834

17.520
3.950
2.760
70.000
2.550

2.340

147.954

3
 97.724

245.678

4
 The Brilliant Company
Income Statement
For the month ended September 30, 2013

(in US$)
Service Revenue 139.183

Rent Revenue 240

Total Revenue 139.423

Operating Expenses:

- Interest Expense 10.667

- Salaries Expense 17.573

- Advertising Expense 4.767

- Utilities Expense 3.883

- Insurance Expense 300

- Supplies Expense 217

- Depreciation Expense - Building 930

- Deprecition Expense - Equipment 670

- Miscellaneous Expense 2.692

Total Operating Expenses (41.699)

NET INCOME 97.724

1
 The Brilliant Company
Retained Earnings Statement
For the month ended September 30, 2013

(in US$)
Retained Earnings (Beginning) 2.550

Net Income, September 2013 97.724

Dividends (2.060)

Increase of Retained Earnings 95.664

Retained Earnings (September 30, 2013) 98.214

1
 The Brilliant Company
Statement of Financial Position
September 30, 2013
(in US$)

Assets Equity & Liabilities

Cash 2.160 Liabilities

Accounts Receivable 24.850
Prepaid Insurance 3.300 Accounts Payable
Supplies 508 Unearned Rent
Land 53.000 Salaries Payable
Building 104.750 Total Liabilities
Accumulated Dep-Building (48.834)
Equipment 55.050
Accumulated Dep-Equipment (17.520) Equity

Share-Capital
Retained Earnings

Total Equity

Total Assets 177.264 Total Liabilities + Equity

Total Equity & Liabilities -0

1
 3.950
2.760
2340
9.050

70.000
98.214

168.214

177.264

2
 The Brilliant Company
Closing Entries

Date Description Ref. Debit

Sep, 2013 30 Service Revenue 139.183

Rent Revenue 240
Income Summary

30 Income Summary 41.699

Interest Expense
Salaries Expense
Advertising Expense
Utilities Expense
Insurance Expense
Supplies Expense
Depreciation Expense - Building
Deprecition Expense - Equipment
Miscellaneous Expense

30 Income Summary 97.724

Retained Earnings

30 Retained Earnings 2.060

Dividends

1
 (in US$)
Page 01

Credit

139.423

10.667
17.573
4.767
3.883
300
217
930
670
2.692

97.724

2.060

2
 The Brilliant Company
POST CLOSING TRIAL BALANCE
Per September 30, 2013
(in US$)
Description Debit Credit
Cash 2.160

Accounts Receivable 24.850

Prepaid Insurance 3.300

Supplies 508

Land 53.000

Building 104.750

Accummulated Depr. - Building 48.834

Equipment 55.050

Accummulated Depr. - Equipment 17.520

Accounts Payable 3.950

Salaries Payable 2.340

Unearned Rent 2.760

Share-Capital 70.000

Retained Earnings 98.214

TOTAL 243.618 243.618