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Basic Accounting Problems

1) The trial balance and adjusting entries summarize the financial activities of Nayan Storage for the period. Key expense accounts were adjusted for depreciation, bad debts, prepaid insurance, and unearned storage fees. 2) The adjusted trial balance and income statement show total revenues of $41,200 and total expenses of $36,699, resulting in a net profit of $4,501 for the period. 3) The balance sheet lists total assets of $70,551 including current assets, fixed assets, and land. Total liabilities are $23,550 and owner's equity is $47,001, accounting for total liabilities and owner's equity of $70,551.

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Karen Joy Jacinto Ello
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1K views5 pages

Basic Accounting Problems

1) The trial balance and adjusting entries summarize the financial activities of Nayan Storage for the period. Key expense accounts were adjusted for depreciation, bad debts, prepaid insurance, and unearned storage fees. 2) The adjusted trial balance and income statement show total revenues of $41,200 and total expenses of $36,699, resulting in a net profit of $4,501 for the period. 3) The balance sheet lists total assets of $70,551 including current assets, fixed assets, and land. Total liabilities are $23,550 and owner's equity is $47,001, accounting for total liabilities and owner's equity of $70,551.

Uploaded by

Karen Joy Jacinto Ello
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Trial Balance Adjustment

ACCOUNT TITLE Dr Cr Dr Cr
Cash 2330
Accounts Receivable 970
Allowance for Doubtful Accounts 97
Prepaid Insurance 1450 650
Office Supplies 410 300
Office Equipment 1780
Accumulated Depreciation -equipment 450 267
Trucks 15000
Accumulated Depreciation-Trucks 1500 2250
Building 45500
Accumulated Depreciation- Building 4550 6825
Land 20000
Account Payable 1050
Office Salary Payable 3000
Trucks Driver Payable 4200
Mortgage Payable 15000
Unearned storage fees 750 450
Nayan, Capital 44500
Nayan, Personal 2000
Storage Income 40750 450
Insurance Expense 650
Office Supply Expense 300
Depreciation Expense-Equipment 267
Depreciation Expense- Trucks 2250
Deprecition Expense -Building 6825
Bad debt expense 97
Office Salaries Expense 5500 3000
Truck Driver Wages 10600 4200
Gas and Oil 3010
Total 108550 108550 18039 18039
Profit

Adjusting Entries
1. Bad Debts Expense 97
Allowance for doubtful Accounts 97
2.Insurance Expense 650
Prepaid Insurance 650
3. Office Supplies Expense 300
Office Suplies 300
4. Depreciation Expense-office Equipment 267
Accumulated Depreciation- Office Equipment 267
Depreciation Expense- Trucks 2250
Accumulated Depreciation- Trucks 2250
Depreciation Expense- Building 6825
Accumulated Depreciation- Building 6825
5. Unearned Storage fees 450
Storage Income 450
6. Office Salaries Expense 3000
Office Salaries Payable 3000
Truck Driver's Insurance Expense 4200
Truck Driver's Payable 4200
Adjusted Trial Balance Income Statement Balance sheet
Dr Cr Dr Cr Dr Cr
2330 2330
970 970
97 97
800 800
110 110
1780 1780
717 717
15000 15000
3750 3750
45500 45500
11375 11375
20000 20000
1050 1050
3000 3000
4200 4200
15000 15000
300 300
44500 44500
2000 2000
41200 41200
650 650
300 300
267 267
2250 2250
6825 6825
97 97
8500 8500
14800 14800
3010 3010
125189 125189 36699 41200 88490 83989
4501 4501
41200 41200 88490 88490
Nayan Storage
Statement of Financial
for the Month ended December 31, 2020
Current Asset
Cash 2330
Accounts Receivable 970
Allowance for doubtful Accounts -97
Prepaid Insurance 800
Office Supplies 110
Total current Asset 4113
Non Current asset
Office Equipment 1780
Accumulated Depreciation-Office Equipment 717 1063
Trucks 15000
Accumulated Depreciation-Office Trucks 3750 11250
Building 45500
Accumulated Depreciation-Office Building 11375 34125
Land 20,000 66,438
Total Asset 70551

Liabilities
Accounts Payable 1050
Office Salaries 3000
Truck Driver's Payable 4200
Unearned storage fees 300
Mortgage Payable 15000
Total Liabilities 23550

Owner's Equity
Nayan, Capital 47001

Total liabilities and owner's equity 70551


Nayan Storage
Statement of Financial Performance
for the Month ended December 31, 2020

Revenues
Storage income 41,200

Expenses
Office Supplies Expense 300
Depreciation Expense- Equipment 267
Depreciation Expense- Truck 2250
Depreciation Expense- Building 6825
Bad debt Expense 97
Insurance Expense 650
Office Salaries Expense 8500
Trucks Driver's Wages 14800
Gasoline and oil 3010
Total 36699

Profit 4,501

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