TUM COMPANY

Worksheet

Unadjusted Adjusted
Trial Balance Adjustments Trial Balance
(Ltr
Account Debit Credit ) Debit (Ltr) Credit Debit Credit
Cash $86,000 $86,000
Accounts receivable 15,000 (a) 4,000 19,000
Office supplies 17,800 (b) 8,800 9,000
Prepaid insurance 6,040 (c) 2,080 3,960
Office equipment 87,000 87,000
Accumulated depreciation,
Office equipment $24,000 (d) 2,000 $26,000
Accounts payable 9,100 (e) 14,900 24,000
Interest payable (f) 2,500 2,500
Salaries payable (g) 15,000 15,000

Unearned consulting fees 20,000 (h) 7,000 13,000

Long-term notes payable 54,000 54,000
K. Jenkins, Capital 46,000 46,000
K. Jenkins, Withdrawals 10,000 10,000
Consulting fees earned 165,000 (a) 11,000 176,000
(h) 7,000
Depreciation expense, Office
equipment (d) 2,000 2,000
Salaries expense 67,990 (g) 15,000 82,990
Interest expense 1,270 (f) 2,500 3,770
Insurance expense (c) 2,080 2,080
Rent expense 14,540 14,540
Office supplies expense (b) 8,800 8,800
Advertising expense 12,460 (e) 14,900 27,360
Totals $318,100 $318,100 55,280. $356,500 $356,500

With: Description of purpose for adjusting entry:

(a) Earned but uncollected revenues.
 Cost of office supplies used.
(b)
Cost of expired insurance coverage.
(c)
Depreciation expense on office equipment.
(d)
Incurred but unpaid advertising expense.
(e)
Incurred but unpaid interest expense.
(f)
Incurred but unpaid salaries expense.
(g)
Earned revenues previously received in advance.
(h)

TUM COMPANY
Income Statement
For the Year Ended July 31, 2009

Revenues:
Consulting fees earned 176,000

Expenses:
Depreciation expense-Office
equipment 2,000
Salaries expense 82,990
Interest expense 3,770
Insurance expense 2,080
Rent expense 14,540
Office supplies expense 8,800
Advertising expense 27,360
Total expenses 141,540
Net income 34,460

TUM COMPANY
Statement of Changes in Owner's Equity
 For the Year Ended July 31, 2009

K. Jenkins, Capital, July 31,

2008 46,000
Plus: Net income
Total 34,460
Less: Owner withdrawals 10,000
K. Jenkins, Capital, July 31,
2009 70,460

TUM COMPANY
Balance Sheet
July 31, 2009

Assets
Cash 86,000
Accounts receivable 19,000
Office supplies 9,000
Prepaid insurance 3,960
Office equipment 87,000
Accumulated depreciation-
Office equipment (26,000) …………
Total assets 179,960

Liabilities
Accounts payable 24,000
Interest payable 2,500
Salaries payable 15,000
Unearned consulting fees 13,000
Long-term notes payable 54,000
Total liabilities 108,500

Owner's Equity
K. Jenkins, Capital 70,460
Total liabilities and equity 179,960