Adjusted Trial Balance

Example

1. HUM 213: Principles of Accounting Demo 06: Adjusting Entries & Adjusted Trial Balance- Thayer Motel Chapter 3

2. Thayer Motel The Thayer Motel opened for business on December 1, 2008. it’s trial balance before adjustment on Dec. 31 is as follows.

3. THAYER MOTEL Unadjusted Trial Balance as at Dec 31, 2008 Account Titles Debit Credit Cash $ 2500 $ - Supplies 1,900 Prepaid Taxes 2,400 Accounts Payable 5,300 Unearned Rent 3,600 Notes Payable 35,000 S. Ahmed, Capital 60,000 Rental Revenue 9,200 Advertising Expense 500 Salaries Expense 3,000 Utilities Expense 1,000 Land 55,000 Lodge 30,000 Furniture 16,800 Total 113100 113100

4. Let’s look on some adjustments In addition to those accounts listed on the trial balance, the chart of accounts for Thayer Motel also contains the following accounts and account numbers: Accumulated Depreciation- Lodge, Accumulated Depreciation- Furniture, Accounts Receivable, Salaries Payable, Depreciation Expense- Lodge. Depreciation Expense- Furniture, Taxes Expense, Supplies Expense . Other data: 1. Taxes expires at the rate of $800 per month, 2. A count of supplies shows $1000 of unused supplies on Dec. 31, 3. Annual depreciation is $2,400 on the lodge and $3,000 on furniture, 4. Unearned rent of $2,500 has been earned, 5. Salaries of $800 are accrued and unpaid at Dec. 31, 6. Invoices representing $1,000 of services performed during the month have not been recorded as of Dec. 31.

5. Requirements 1. Prepare the adjusted trial balance for Thayer Motel as on Dec 31, 2008. 2. Prepare an income statement and an owner’s equity statement for the month ended Dec 31, 2008 and a balance sheet for Thayer Motel as at Dec 31, 2008.

6. 1. Taxes expires at the rate of $800 per month,

7. 1. Taxes expires at the rate of $800 per month,

8. 2. A count of supplies shows $1000 of unused supplies on Dec. 31,

9. 2. A count of supplies shows $1000 of unused supplies on Dec. 31,

10. 3. Annual depreciation is $2,400 on the lodge and $3,000 on furniture,

11. 3. Annual depreciation is $2,400 on the lodge and $3,000 on furniture,

12. 4. Unearned rent of $2,500 has been earned,

13. 4. Unearned rent of $2.500 has been earned,

14. 5. Salaries of $800 are accrued and unpaid at Dec. 31,

15. 5. Salaries of $800 are accrued and unpaid at Dec. 31,

16. 6. Invoices representing $1,000 of services performed during the month have not been recorded as of Dec. 31.

17. 6. Invoices representing $1,000 of services performed during the month have not been recorded as of Dec. 31.

18. Now let’s make the Adjusted Trial Balance of Thayer Motel as at Dec. 31, 2007

19. End of Demo 06