JML Institute Online: BCS

lecture 2C2D:

TRIAL BALANCE:

010	CASH			5000			
020	ACCT.REC		2000		
030	INVENTORY		6000		
040	SUPPLIES		 300		
050	PREPD.INS	 	 200		
210	OWN.DRAW		1000
220	OWN CAPTL				5455			
230	ACCT.PAYAB				9000
240	INCOMESUM
250	SALES					3400
255	PURCHASES		3300
260	DELIV.EXP        55
270	INSUR.EXP 		
280	SALARY.EXP
285	RENT.EXP
290	SUPPLY.EXP
________________________________
					17855	17855

ADJUSTMENTS:

Now adjustment must be made for inventory, supplies, and insurance. 

1. We will credit the original inventory and debit 	income summary $6000.
	Next we will credit income summary and debit 	inventory $4500.
2. We will credit supplies and debit supplies expense 	$160.00.
3. we will credit pre-paid insurance and debit 	insurance expence $48.
____________________________________________________
					Trial Balance		Adjustments
					Debits	Credits		Debits	Credits 

010	CASH			5000						
020	ACCT.REC		2000		
030	INVENTORY		6000				4500	6000		
040	SUPPLIES		 300						 160		
050	PREPD.INS	 	 200						  48		
210	OWN.DRAW		1000
220	OWN CAPTL				3000			
230	ACCT.PAYAB				9000
240	INCOMESUM							6000	4500
250	SALES					3400
255	PURCHASES		3300
260	DELIV.EXP        55
270	INSUR.EXP 							48		
280	SALARY.EXP
285	RENT.EXP
290	SUPPLY.EXP							160
_____________________________________________________
										10708	10780

Adjustments must balance like the trial Balance.

HOMEWORK ASSIGNMENT:
UPDATE ABOVE ACCOUNTS MASTER WITH THESE TRANSACTIONS.

BUY A COMPANY CAR ON CREDIT AMT=$3000	HINT: CREDIT_____ DEBIT______.
BUY TIRES WITH CASH AMT=$100				HINT: CREDIT_____ DEBIT______.
SELL THE OLD COMPANY TRUCK  AMT=$1200	HINT: CREDIT_____ DEBIT______.
BUY NEW INVENTORY.  AMT=$500				HINT: CREDIT_____ DEBIT______.