Accounting Adjusted Trial Balance - Excel

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Accounting Adjusted Trial Balance - Excel Powered By Docstoc
					                                                                                   I-04.01


Berry Corporation prepared the following preliminary trial balance. The trial balance and
other information was evaluated by Delton Wiser, CPA. Delton has returned a list of
proposed adjustments that are necessary to facilitate preparation of correct financial
statements for the year ending December 31, 20X3.



                                 BERRY CORPORATION
                                     Trial Balance
                                  December 31, 20X3

                                                      Debits           Credits
             Cash                                 $  30,540        $       -
             Accounts Receivable                     45,000                 -
             Supplies                                 7,000                 -
             Equipment                              244,500                 -
             Accumulated Depreciation                      -          46,500
             Accounts Payable                              -          12,700
             Unearned Revenue                              -          31,250
             Notes Payable                                 -          80,000
             Capital Stock                                 -         100,000
             Retained Earnings, Jan. 1                     -          63,200
             Dividends                               12,000                 -
             Revenues                                      -         289,800
             Wages Expense                          214,600                 -
             Utilities Expense                        8,700                 -
             Selling Expense                         41,610                 -
             Depreciation Expense                    12,000                 -
             Interest Expense                         7,500                 -
                                                  $ 623,450        $ 623,450




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                                                                                     I-04.01


Delton discovered that 40% of the unearned revenue appearing in the trial balance had
actually been earned as of the end of the year.

A physical count of supplies on hand revealed a year-end balance of only $3,000.

Unpaid and unrecorded invoices for utilities for December amounted to $1,500.

The last payday was December 26. Employees are owed an additional $3,900 that has not
been recorded.

Additional depreciation of $3,100 needs to be recorded.


(a)      Prepare journal entries relating to the adjustments.

(b)      Prepare an adjusted trial balance (you might utilize a partial worksheet for this
         task, as shown in the downloadable form).

(c)      Prepare an income statement and statement of retained earnings for 20X3, and a
         classified balance sheet as of the end of the year.
(d)      Berry's bookkeeper argued with Delton that there was no need to record the
         adjustments since they have no "net" effect on income. Evaluate whether this
         observation is true of false, and comment on the appropriateness of this logic.




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Name:
                                               I-04.01(a)
Date:           Section:


    GENERAL JOURNAL                                Page
        Date               Accounts   Debit   Credit
Name:
                                                                                                   I-04.01(b)
Date:                    Section:




                                      BERRY CORPORATION
                                 Worksheet for Adjusted Trial Balance
                                        December 31, 20X3

                                                                                               Adjusted Trial
                                 Trial Balance                  Adjustments                      Balance
                               Debits       Credits           Debits       Credits           Debits       Credits
  Cash                        $ 30,540      $         -   $            -   $         -   $            -   $         -
  Accounts Receivable           45,000                -                -             -                -             -
  Supplies                       7,000                -                -             -                -             -
  Equipment                    244,500                -                -             -                -             -
  Accumulated Depreciation              -       46,500                 -             -                -             -
  Accounts Payable                      -        12,700                -             -                -             -
  Utilities Payable                     -             -                -             -                -             -
  Wages Payable                         -             -                -             -                -             -
  Unearned Revenue                      -        31,250                -             -                -             -
  Notes Payable                         -        80,000                -             -                -             -
  Capital Stock                         -       100,000                -             -                -             -
  Retained Earnings, Jan. 1             -        63,200                -             -                -             -
  Dividends                     12,000                -                -             -                -             -
  Revenues                              -       289,800                -             -                -             -
  Wages Expense                214,600                -                -             -                -             -
  Utilities Expense              8,700                -                -             -                -             -
  Selling Expense               41,610                -                -             -                -             -
  Depreciation Expense          12,000                -                -             -                -             -
  Supplies Expense                      -             -                -             -                -             -
  Interest Expense               7,500                -                -             -                -             -
                              $623,450      $623,450      $            -   $         -   $            -   $         -
Name:
                                                               I-04.01(c)(d)
Date:               Section:




                             BERRY CORPORATION
                               Income Statement
                     For the Year Ending December 31, 20X3
        Revenues
         Services to customers                             $      -
        Expenses
         Wages                              $          -
         Utilities                                     -
         Selling                                       -
         Depreciation                                  -
         Supplies                                      -
         Interest                                      -          -
        Net income                                         $      -




                             BERRY CORPORATION
                         Statement of Retained Earnings
                     For the Year Ending December 31, 20X3
        Beginning retained earnings                        $      -
        Plus: Net income                                          -
                                                           $      -
        Less: Dividends                                           -
        Ending retained earnings                           $      -




                                                                        5 of 6
Name:
                                                             I-04.01(c)(d)
Date:                Section:



                                BERRY CORPORATION
                                   Balance Sheet
                                 December 31, 20X3
        Assets
         Current assets
           Cash                             $        -
           Accounts receivable                       -
           Supplies                                  - $        -
         Property, plant & equipment
          Equipment                         $        -
          Less: Accumulated depreciation             -          -
         Total assets                                    $      -


        Liabilities
         Current liabilities
           Accounts payable                 $        -
           Utilities payable                         -
           Wages payable                             -
           Unearned revenue                          -   $      -
         Long-term liabilities
          Notes payable                                         -
         Total liabilities                               $      -
        Stockholders' equity
          Capital stock                     $        -
          Retained earnings                          -
         Total stockholders' equity                             -
          Total Liabilities and equity                   $      -



(d)




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