AC1420: Week 2 Adjusted Trial Balance

exercise_2.2_template.xlsx

2.2 Journal Entries Template

Adjustment	Account and details	REF	Debit	Credit
1	Interest Expense		$1,000
	Interest Payable			$1,000
	To record December interest expense to be paid in January
2	Expense for Outside Services		$750
	Accounts Payable			$750
	To record liability towards contractor
3	Rental Expenses		$6,000
	Prepaid Rent			$4,000
	Cash			$2,000
	To record the appropiate rental expense for the month
4	Wage Expense		$750
	Wages Payable			$750
	To record liability towards employees
5	Prepaid Insurance		$1,200
	Cash			$1,200
	To record insurance payment for the following year
	Total		$9,700	$9,700

TRIAL BALANCE	Starting Balance		Adjusting Entry 1		Adjusting Entry 2		Adjusting Entry 3		Adjusting Entry 4		Adjusting Entry 5		Adjusted Trial Balance
	Debit (+)	Credit (-)	Debit (+)	Credit (-)	Debit (+)	Credit (-)	Debit (+)	Credit (-)	Debit (+)	Credit (-)	Debit (+)	Credit (-)	Debit (+)	Credit (-)
Cash	$7,500			$2,000									7,500.00	2,000.00
Prepaid Rent		$4,000											- 0	4,000.00
Prepaid Insurance	$1,200			$1,200									1,200.00	1,200.00
Finished Goods	$1,000												1,000.00	- 0
Receivables													- 0	- 0
Machinery and Equipment													- 0	- 0
Building													- 0	- 0
Common Stock													- 0	- 0
Bank Loans													- 0	- 0
Accounts Payable													- 0	- 0
Interest Payable													- 0	- 0
Wages Payable													- 0	- 0
Sale of Goods Produced													- 0	- 0
Cost of Goods Sold													- 0	- 0
Expense for Outside Services													- 0	- 0
Wage Expenses													- 0	- 0
Rent Expense		$6,000											- 0	6,000.00
Depreciation													- 0	- 0
Insurance Expense													- 0	- 0
Interest Expense													- 0	- 0
	9,700.00	10,000.00	- 0	3,200.00	- 0	- 0	- 0	- 0	- 0	- 0	- 0	- 0	9,700.00	13,200.00