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. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Chapter

5
Adjustments and the
Worksheet
Section 1: The Worksheet
Section Objectives
5-1 Complete a trial balance on
a worksheet.
5-2 Prepare adjustments for
unrecorded business
transactions.

Objective 5-1
The worksheet has
an Account Name column

Complete a trial balance on a

worksheet.
The worksheet also
has five sections

Each section has

two columns

Wells Consulting Services

Worksheet
Month Ended December 31, 2016
TRIAL BALANCE
ACCOUNT NAME

DEBIT

CREDIT

ADJUSTMENTS
DEBIT

CREDIT

ADJ. TRIAL BAL.

INCOME STMT.

DEBIT

DEBIT

CREDIT

CREDIT

BALANCE SHEET
DEBIT

CREDIT

5-3

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.

Step 1: Enter the general

ACCOUNT NAME

TRIAL BALANCE
DEBIT

Cash
Accounts Receivable
TRIAL
Supplies
ACCOUNT NAME
DEBIT
Prepaid Rent
Cash
Equipment
Accum. Depr.Equip.
Accounts Payable
Carolyn Wells, Cap.
Carolyn Wells, Draw.
Fees Income
Salaries Expense
Utilities Expense
Supplies Expense
Rent Expense
Depr. Exp.Equip.
Totals

Wells Consulting Services

ledger account
names.
Worksheet
Month Ended December 31, 2016
ADJ. TRIAL BAL.

Carter Consulting Service

DEBIT CREDIT DEBIT
Worksheet
Month Ended December 31, 2004
CREDIT

BALANCE
CREDIT

ADJUSTMENTS

ADJUSTMENTS
DEBIT

CREDIT

ADJ. TRIAL BAL.

DEBIT

CREDIT

CREDIT

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT CREDIT

CREDIT

INCOME STATEMENT BALANCE SHEET

DEBIT

CREDIT

DEBIT

CREDIT

These four new accounts will

be used for the adjustments.
**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.
Wells Consulting Services
Worksheet
Month Ended December 31, 2016
TRIAL BALANCE
ACCOUNT NAME

Cash

DEBIT

CREDIT

ADJUSTMENTS

ADJ. TRIAL BAL.

DEBIT

DEBIT

CREDIT

CREDIT

INCOME STMT.
DEBIT

CREDIT

BALANCE SHEET
DEBIT

CREDIT

111,350

Accounts Rec.
Supplies

101
Cash
ACCOUNT ____________________________
ACCOUNT NO. ________

Prepaid Rent
Equipment
Accum. Depr.

BALANCE

DATE

DESCRIPTION

2016
Nov. 30

Bal. forward

POST
REF.

DEBIT

CREDIT

DEBIT

64,400
87,000

Accounts Pay.

Dec. 31

J2

36,000

123,000

C. Wells, Cap.

Dec. 31

J2

2,000

125,000

Dec. 31

J2

8,000

117,000

Dec. 31

J2

650

116,350

Dec. 31

J2

5,000

111,350

C. Wells, Draw.

CREDIT

5-6

Step 3: Total the Debit and Credit columns to prove

that the trial balance is in balance.
ACCOUNT NAME

Cash

TRIAL BALANCE

ADJUSTMENTS

DEBIT CREDIT

DEBIT

5,000

Supplies

1,500

Prepaid Rent
Equipment
Accum. Depr.Equip.

Utilities Expense

DEBIT

DEBIT CREDIT

DEBIT CREDIT

CREDIT

3,500
100,00
0
5,000

Fees Income
Salaries Expense

BALANCE SHEET

Step 4: Place a double rule

under each Trial Balance
column to show that the work in
that column is complete.

8,000
11,000

Accounts Payable
Carolyn Wells, Draw.

INCOME STMT.

111,350

Accounts Receivable

Carolyn Wells, Cap.

CREDIT

ADJ. TRIAL BAL.

47,000
8,000
650

Supplies Expense
Rent Expense
Depr. Exp.Equip.
Totals

150,500 150,500
5-7

Objective 5-2 Prepare adjustments for unrecorded

business transactions.

ACCOUNT NAME

Cash

TRIAL BALANCE ADJUSTMENTS ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT CREDIT

DEBIT CREDIT

DEBIT CREDIT

DEBIT

CREDIT DEBIT

CREDIT

111,350

Accounts Receivable 5,000

Supplies
1,500
Prepaid Rent
Equipment
Accum. Depr.Equip.

8,000
11,00
0
3,500

Accounts
Payable
Carolyn Wells, Cap.

100,00
0
Carolyn Wells, Draw. 5,000
Fees Income
47,000
Salaries Expense
Utilities Expense

8,000
650

Supplies Expense

Adjusting entries are first

entered in the Adjustments
section of the worksheet

Rent Expense
Depr. Exp.Equip.
Totals

150,500 150,500
5-8

The Supplies Adjustment

Wells Consulting Services began the month with $1,500 in supplies.
At the end of the month, $1,000 in supplies remained.
QUESTION:

What dollar amount of supplies was

used during the month?

$1,500
- 1,000

ANSWER:

$500

5-9

Wells Consulting Services

Worksheet
Month Ended December 31, 2016
ACCOUNT NAME

Cash

TRIAL BALANCE

ADJUSTMENTS

ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT

DEBIT

DEBIT

DEBIT CREDIT

5,000

Supplies

1,500

Equipment

CREDIT

CREDIT

CREDIT

111,350

Accounts Receivable
Prepaid Rent

CREDIT

(a)

500

8,000
11,000

Accum. Depr.Equip.
3,500

Accounts Payable
Carolyn Wells, Cap.
Carolyn Wells, Draw.

100,000
5,000

Fees Income
Salaries Expense
Utilities Expense

47,000
8,000
650

Supplies Expense

(a)

500

Rent Expense
Depr. Exp.Equip.
Totals

150,500 150,500
5-10

The Prepaid Adjustment

On November 20, 2016, Wells Consulting Services paid $8,000
for the December and January rent. As of December 31, 2016,
one months rent had already been used up.
QUESTION:

What dollar amount of rent was

used during the month of December?

$8,000
- 4,000

ANSWER:

$4,000

5-11

Wells Consulting Services

Worksheet
Month Ended December 31, 2016
ACCOUNT NAME

Cash

TRIAL BALANCE

ADJUSTMENTS

ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT CREDIT

DEBIT

DEBIT

DEBIT CREDIT

DEBIT CREDIT

5,000

Supplies

1,500

Equipment

CREDIT

111,350

Accounts Receivable
Prepaid Rent

CREDIT

500
(b) 4,000
(a)

8,000
11,000

Accum. Depr.Equip.
3,500

Accounts Payable
Carolyn Wells, Cap.
Carolyn Wells, Draw.

100,000
5,000

Fees Income
Salaries Expense
Utilities Expense

47,000
8,000
650

Supplies Expense

(a)

Rent Expense

(b)

500

4,000

Depr. Exp.Equip.
Totals

150,500 150,500
5-12

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

De
20 c.
13

b.
Fe 4
1
20

Expense

This expense is called

depreciation

Expense
Jan.
2014

Expense
5-13

There are several methods to calculate depreciation.

Wells Consulting Services uses the straight-line method.
QUESTION:

What is straight-line depreciation?

ANSWER:

Straight-line depreciation (S/L) allocates

an assets 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
Wells Consulting Services purchased equipment in November, 2016.
Cost = $11,000
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:

$11,000 - $0
60 months
$183
5-15

Adjustment for Depreciation

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

Asset account has a

normal debit balance

Accumulated Depreciation
Equipment
+

Contra asset account has

a normal credit balance

5-16

Wells Consulting Services

Worksheet
Month Ended December 31, 2016
ACCOUNT NAME

Cash

TRIAL BALANCE

ADJUSTMENTS

ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT

DEBIT

DEBIT

DEBIT CREDIT

5,000

Supplies

1,500

Equipment

(a)

8,000
11,000

(b)

Accum. Depr.Equip.

183

When all adjustments are

entered, total and rule the
Adjustments columns.

5,000
47,000
8,000
650

Supplies Expense

(a)

Rent Expense

(b)

Depr. Exp.Equip.
Totals

500

100,000

Fees Income
Utilities Expense

CREDIT

3,500

Carolyn Wells, Cap.

Salaries Expense

CREDIT

4,000

(c)

Accounts Payable
Carolyn Wells, Draw.

CREDIT

111,350

Accounts Receivable
Prepaid Rent

CREDIT

4,000

(c)

150,500 150,500

500
183

4,683

4,683
5-17

Book Value
Equipment
11,000

Accumulated Depreciation
Equipment
183

Original cost of equipment

Record of all depreciation
taken on equipment

Book value = Original cost Accumulated depreciation

=
11,000 183
=
10,817

5-18

Chapter

5
Adjustments and the
Worksheet
Section 2: Financial Statements
Section Objectives
5-3 Complete the worksheet.
5-4 Prepare an income statement, statement of
owner's equity, and balance sheet from the
completed worksheet.
5-5 Journalize and post the adjusting entries.
5-19

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 8
Prepare a
postclosing
trial balance

Step 7
Record
closing
entries

Step 6
Record
adjusting
entries

5-20

Objective 5-3

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.
ACCOUNT NAME

Cash

TRIAL BALANCE
DEBI
T

5,000

Supplies

1,500

Equipment

ADJ. TRIAL BAL.

DEBIT

DEBI
T

CREDIT

111,350

Accounts Receivable
Prepaid Rent

CREDIT

ADJUSTMENTS

(a)

8,000
11,000

(b)

Accum. Depr.Equip.

500

183

5,000
47,000
8,000
650

Supplies Expense

(a)

Rent Expense

(b)

Depr. Exp.Equip.
Totals

DEBIT CREDIT

CREDIT

100,000

Fees Income
Utilities Expense

DEBIT

3,500

Carolyn Wells, Cap.

Salaries Expense

BALANCE SHEET

4,000
(c)

Accounts Payable
Carolyn Wells, Draw.

CREDIT

INCOME STMT.

4,000

(c)

150,500 150,500

500
183

4,683

4,683
5-22

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

Cash

TRIAL BALANCE

ADJUSTMENTS

ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT

DEBIT

DEBIT

DEBIT CREDIT

CREDIT

CREDIT

5,000

Supplies

1,500

(a)

Prepaid Rent

8,000

(b)

5,000
4,000
11,000

Accum. Depr.Equip.

(c)

Carolyn Wells, Cap.

Carolyn Wells, Draw.

500

11,000

Accounts Payable

183

3,500

3,500

100,000

100,000

5,000

Fees Income

5,000
47,000

47,000

Salaries Expense

8,000

8,000

Utilities Expense

650

650

Supplies Expense

(a)

500

Rent Expense

(b)

4,000

Depr. Exp.Equip.

(c)

183

Totals

CREDIT

111,350

111,350

Accounts Receivable

Equipment

CREDIT

150,500 150,500

4,683

4,683
5-23

The Supplies account has a $1,500 debit balance in the Trial Balance section
and a $500 credit in the Adjustments section.
($1,500 debit and $500 credit = $1,000)
ACCOUNT NAME

Cash

TRIAL BALANCE

ADJUSTMENTS

ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT

DEBIT

DEBIT

DEBIT CREDIT

5,000

Supplies

1,500

Equipment

CREDIT

Carolyn Wells, Draw.

Utilities Expense

(b)

4,000

4,000
11,000

183

183

3,500

3,500

100,000

100,000

5,000

5,000
47,000

47,000

8,000
650

Supplies Expense

8,000
650
(a)

500

Rent Expense

(b)

4,000

Depr. Exp.Equip.

(c)

183

Totals

1,000

(c)

Fees Income
Salaries Expense

500

(a)

Accum. Depr.Equip.
Carolyn Wells, Cap.

CREDIT

5,000

8,000
11,000

Accounts Payable

CREDIT

111,350

111,350

Accounts Receivable
Prepaid Rent

CREDIT

150,500 150,500

4,683

500
4,000
183
4,683
5-24

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

Cash

TRIAL BALANCE

ADJUSTMENTS

ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT

DEBIT

DEBIT

DEBIT CREDIT

CREDIT

CREDIT

5,000

Supplies

1,500

(a)

Prepaid Rent

8,000

(b)

5,000

Accum. Depr.Equip.

Utilities Expense

4,000
11,000

183

183
3,500
100,000

100,000
5,000

5,000
47,000

47,000

8,000
650

Supplies Expense

8,000
650
500

500

4,000

4000

183
4,683

183

(a)

Rent Expense

(b)

Depr. Exp.Equip.
Totals

4,000

3,500

Fees Income
Salaries Expense

1,000

(c)

Carolyn Wells, Cap.

Carolyn Wells, Draw.

500

11,000

Accounts Payable

CREDIT

111,350

111,350

Accounts Receivable

Equipment

CREDIT

(c)

150,500 150,500

4,683 150,683 150,683

5-25

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.
ACCOUNT NAME

Cash

TRIAL BALANCE

ADJUSTMENTS

ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT

DEBIT

DEBIT

DEBIT CREDIT

CREDIT

CREDIT

5,000

Supplies

1,500

(a)

8,000
11,000

(b)

Equipment

5,000

Accum. Depr.Equip.
Carolyn Wells, Cap.
Carolyn Wells, Draw.

Utilities Expense

4,000

1,000
4,000
11,000

183

183

3,500

3,500

100,000

100,000

5,000

Fees Income
Salaries Expense

500

(c)

Accounts Payable

5,000
47,000

47,000
8,000
650

Supplies Expense

8,000
650
(a)

500

500

Rent Expense

(b)

4,000

4000

Depr. Exp.Equip.

(c)

183

183

4,683

4,683 150,683 150,683

Totals

CREDIT

111,350

111,350

Accounts Receivable
Prepaid Rent

CREDIT

150,500 150,500

5-26

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

Cash

TRIAL BALANCE

ADJUSTMENTS

ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT

DEBIT

DEBIT

DEBIT CREDIT

CREDIT

CREDIT

5,000

Supplies

1,500

(a)

Prepaid Rent

8,000

(b)

Equipment

500

1,000

4,000

4,000
11,000

1,000
4,000
11,000

183

183

100,000
5,000

Fees Income
Utilities Expense

5,000

3,500

Carolyn Wells, Cap.

Salaries Expense

5,000

(c)

Accounts Payable
Carolyn Wells, Draw.

111,350

11,000

Accum. Depr.Equip.

3,500

183
3,500

100,000

100,000

5,000
47,000

(a)

47,000

8,000
650

8,000
650

500

500

500
4,000

Rent Expense

(b)

4,000

4000

Depr. Exp.Equip.

(c)

183

183

150,500 150,500

5,000
47,000

8,000
650

Supplies Expense

Totals

CREDIT

111,350

111,350

Accounts Receivable

CREDIT

4,683

183

4,683 150,683 150,683 13,333 47,000 137,350 103,683

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

CREDIT

CREDIT

CREDIT

CREDIT

111,350
111,350
Cash
111,350
Accounts Receivable
5,000
5,000
5,000
Supplies
1,000
1,000
1,500
(a) 500
4,000
Prepaid Rent
4,000
8,000
(b) 4,000
11,000
11,000
11,000
Equipment
183
(c) 183
Accum. Depr.Equip.
183
3,500
3,500
3,500
Accounts Payable
Carolyn Wells, Cap.
100,000
100,000
100,000
Carolyn Wells, Draw.
5,000
5,000
5,000
Fees Income
47,000
47,000
47,000
Salaries Expense
8,000
8,000
8,000
650
650
650
Utilities Expense
(a) 500
500
Supplies Expense
500
4,000
Rent Expense
4000
(b) 4,000
Depr. Exp.Equip.
(c) 183
183
183
Totals
150,500 150,500 4,683 4,683 150,683 150,683 13,333 47,000 137,350103,683
Net Income

5-28

If the credit total is more than the debit total, the firm has net income. . .
Enter the amount on the Net Income line. (47,000 13,333 = 33,667)
ACCOUNT NAME

TRIAL BALANCE

ADJUSTMENTS

ADJ. TRIAL BAL.

INCOME STMT.

BALANCE SHEET

DEBIT

DEBIT

DEBIT

DEBIT

DEBIT CREDIT

CREDIT

CREDIT

CREDIT

CREDIT

111,350
111,350
Cash
111,350
Accounts Receivable
5,000
5,000
5,000
Supplies
1,000
1,000
1,500
(a) 500
4,000
Prepaid Rent
4,000
8,000
(b) 4,000
11,000
11,000
11,000
Equipment
183
(c) 183
Accum. Depr.Equip.
183
3,500
3,500
3,500
Accounts Payable
Carolyn Wells, Cap.
100,000
100,000
100,000
Carolyn Wells, Draw.
5,000
5,000
5,000
Fees Income
47,000
47,000
47,000
Salaries Expense
8,000
8,000
8,000
650
650
650
Utilities Expense
(a) 500
500
Supplies Expense
500
4,000
Rent Expense
4000
(b) 4,000
Depr. Exp.Equip.
(c) 183
183
183
Totals
150,500 150,500 4,683 4,683 150,683 150,683 13,333 47,000 137,350103,683
Net Income
33,667

5-29

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

CREDIT

CREDIT

CREDIT

CREDIT

111,350
111,350
Cash
111,350
Accounts Receivable
5,000
5,000
5,000
Supplies
1,000
1,000
1,500
(a) 500
4,000
Prepaid Rent
4,000
8,000
(b) 4,000
11,000
11,000
11,000
Equipment
183
(c) 183
Accum. Depr.Equip.
183
3,500
3,500
3,500
Accounts Payable
Carolyn Wells, Cap.
100,000
100,000
100,000
Carolyn Wells, Draw.
5,000
5,000
5,000
Fees Income
47,000
47,000
47,000
Salaries Expense
8,000
8,000
8,000
650
650
650
Utilities Expense
(a) 500
500
Supplies Expense
500
4,000
Rent Expense
4000
(b) 4,000
Depr. Exp.Equip.
(c) 183
183
183
Totals
150,500 150,500 4,683 4,683 150,683 150,683 13,333 47,000 137,350 103,683
Net Income
33,667
33,667
47,000 47,000 137,350 137,350

5-30

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 8
Prepare a
postclosing
trial balance

Step 7
Record
closing
entries

Step 6
Record
adjusting
entries

5-31

Prepare financial statements from

the worksheet.

Objective 5-4

Wells Consulting Services

Income Statement
Month Ended December 31, 2016
Revenue
Fees Income

$47,000

Expenses
Salaries Expense

$8,000

Utilities

650

Supplies Expense

500

Rent Expense
Depreciation Expense - Equipment
Total Expenses
Net Income for the Month

4,000
183
$13,333
$33,667

5-32

Wells Consulting Services

Statement of Owners Equity
Month Ended December 31, 2016
Carolyn Wells, Capital, December 1, 2016
Net Income for December
Less Withdrawals for December
Increase in Capital
Carolyn Wells, Capital, December 31, 2016

$ 100,000
$33,667
5,000
28,667
$128,667

5-33

Account Form of Balance Sheet

Wells Consulting Services
Balance Sheet
December 31, 2016
Assets
Cash
$111,350.00
Accounts Receivable
5,000.00
Supplies
1,000.00
Prepaid Rent
Equipment
Total Assets

4,000.00
10,817.00
$ 132,167.00

Liabilities
Accounts Payable

Owners Equity
Carolyn Wells, Capital
Total Liabilities and Owners Equity

128,667.00
$ 132,167.00

3,500.00

5-34

Report Form of Balance Sheet

Wells Consulting Services
Balance Sheet
December 31, 2016
Assets
Cash

$111,350

Accounts Receivable

5,000

Supplies

1,000

Prepaid Rent

4,000

Equipment
Less Accumulated Depreciation
Total Assets

$11,000
183

10,817
$132,167

Liabilities and Owners Equity

Liabilities
Accounts Payable

$ 3,500

Owners Equity
Carolyn Wells, Capital
Total Liabilities and Owners Equity

128,667
$132,167

5-35

Objective 5-5

Journalize and post the adjusting

entries.

The worksheet is NOT

A financial statement
A permanent part of the accounting
records

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 8
Prepare a
postclosing
trial balance

Step 7
Record
closing
entries

Step 6
Record
adjusting
entries

5-37

QUESTION:

What adjustments must Wells

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
2016
Dec. 31

POST.
REF .

DESCRIPTION

PAGE

DEBIT

2016
Adjusting Entries
Dec. 31 Supplies Expense
Supplies

517
121

500.00

31 Rent Expense
Prepaid Rent

520
137

4000.00

31 Depr. ExpenseEquipment
Accum. Depr.Equipment

523
142

183.00

Supplies Expense
DESCRIPTION

Adjusting

POST.
REF.

J3

CREDIT

500.00
4000.00
183.00

ACCOUNT NO.
DEBIT

500.00

CREDIT

517

BALANCE
DEBIT
CREDIT

500.00

5-39

Thank You
for using

College Accounting, 14th Edition

Price Haddock Farina

5-40