Finishing the Worksheet with Adjustments

By Jeff Boulton

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Contents:

1. Lesson

2. Practice Exercises

 

 

 

 

 

 

 

 

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In this activity we return to the worksheet. By now you should know how to make and complete one without adjustments.Now you will learn how to add adjustments to the worksheet and then complete the worksheet with adjustments.

 

This fits into the accounting cycle as follows:

 

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Question

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Instructions:

Take the worksheet for Jane Doe Company for the month ending January 31st, of this year. To view, click below:

Worksheet

 

Complete the adjusting entry columns from the additional information below. Then complete the worksheet.

Additional Information:

1. A late sales invoice was received from the sales department for services performed by the owner, Jane Doe. The fees charged were $100 plus HST which was paid in cash.
2. Supplies remaining in the storeroom are valued at $480.
3. The insurance policy the company owns was purchased on January 1st of this year and will last for six months.
4. Employees are paid $4,000 every two weeks. The last pay day was January 24th.
5. The car is two years old as of January 1st, and is amortized using the declining balance method using the rate of 20%.
6. Equipment is amortized using the straight-line method. It is three years old and is expected to last for another seven years. In seven years, it is expected to have a scrap value of $3,000.

 

 

 

 

Answer

 

Click below for the answer.

Answer

 

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