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    Exercise 8-7 Page 319

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    Dianne Jane Liray
    The unadjusted trial balance shows the accounts and their pre-adjustment balances. Adjustments are then made including reducing inventory by $720,000, reducing prepaid rent by $49,000, reducing supplies by $5,000, reducing furniture by $20,000, and reducing equipment by $30,000. The adjustments total $830,500 which results in a net loss of $180,300 on the income statement and reduces retained earnings on the balance sheet by the same amount.

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    Exercise 8-7 Page 319

    Uploaded by

    Dianne Jane Liray
    85 views3 pages
    The unadjusted trial balance shows the accounts and their pre-adjustment balances. Adjustments are then made including reducing inventory by $720,000, reducing prepaid rent by $49,000, reducing supplies by $5,000, reducing furniture by $20,000, and reducing equipment by $30,000. The adjustments total $830,500 which results in a net loss of $180,300 on the income statement and reduces retained earnings on the balance sheet by the same amount.

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    accounting

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    The unadjusted trial balance shows the accounts and their pre-adjustment balances. Adjustments are then made including reducing inventory by $720,000, reducing prepaid rent by $49,000, reducing supplies by $5,000, reducing furniture by $20,000, and reducing equipment by $30,000. The adjustments total $830,500 which results in a net loss of $180,300 on the income statement and reduces retained earnings on the balance sheet by the same amount.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    85 views3 pages

    Exercise 8-7 Page 319

    Uploaded by

    Dianne Jane Liray
    The unadjusted trial balance shows the accounts and their pre-adjustment balances. Adjustments are then made including reducing inventory by $720,000, reducing prepaid rent by $49,000, reducing supplies by $5,000, reducing furniture by $20,000, and reducing equipment by $30,000. The adjustments total $830,500 which results in a net loss of $180,300 on the income statement and reduces retained earnings on the balance sheet by the same amount.

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    Accounting Title Unadjusted Trial Balance Adjustments

    Debit Credit Debit


    Cash in Bank ₱480,000
    Petty Cash Fund 1,000
    Accounts Receivable 87,000
    Est.Uncollectible Accounts 2,000
    Merchandise Inventory 190,000 720,000
    Prepaid Rental 145,000
    Unused Supplies 35,000
    Furnitures & Fixtures 120,000
    Acc. Depreciation 24,000
    Delivery Equipment 450,000
    Acc. Depreciation 90,000
    Accounts Payable 40,000
    Vat Payable 85,000
    Matilde Perez,Capital 822,700
    Matilde Perez,Drawing 30,000
    Sales 2,850,000
    Sales Returns & Allowances 4,500
    Purchases 1,985,000
    Purchase Returns & Allowances 3,800
    Freight In 12,000
    Salaries & Wages 298,000
    Taxes & Licenses 14,000
    Utilities Expense 66,000 6,500
    Total 3,917,500 3917500

    Adjustments
    Merchandise Inventory on Hand
    Prepaid Expense 49,000
    Store Supplies Used 5,000
    Furnitures & Fixtures 20,000
    Delivery Equipment 30,000
    Accrued utilities

    TOTAL 830,500
    Net Loss to Balance Sheet
    Grand Totals
    Adjustments Adjusted Trial Balance Income Statement BALANCE SHEET
    Credit Debit Credit Debit Credit
    480,000 480,000
    1,000 1,000
    87,000 87,000
    2,000
    910,000 910,000
    49,000 96,000 96,000
    5,000 30,000
    120,000 120,000
    20,000 44,000
    450,000 450,000
    30,000 60,000
    40,000
    85,000
    822,700
    30,000 30,000
    2,850,000 2,850,000
    4,500 4,500
    1,985,000 1,985,000
    3,800 3,800
    12,000 12,000
    298,000 298,000
    14,000 14,000
    72,500 72,500

    720,000 720,000 720,000


    49,000 49,000
    5,000 5,000
    20,000 20,000
    30,000 30,000
    6,500 6,500 6500

    830,500 4,664,000 4,664,000 3,400,000 3,580,300 1,264,000


    180,300 180,300
    3,400,000 3,400,000 1,083,700
    BALANCE SHEET

    2,000

    30,000

    44,000

    60,000
    40,000
    85,000
    822,700

    1,083,700

    1,083,700

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