Problem 42A Completing a work sheet Lo1 eXce CHECK FIGURE 3

Problem 4-2A Completing a work sheet Lo1 eXce CHECK FIGURE: 3. Adjusted trial balance columns $67,380 , unadiusted trial balance for Trenton Consulting after its first year of operations followy ton Consulting Trial Balance.xls P18 Trenton Consulting Unadjusted Trial Balance June 30, 2017 Trial Balance Dr. Cr. Account 6 7 Cash 8 Accounts receivable qPrepaid rent 10? Equipment 11 Accounts payable 12 Toni Trenton, capital 13 Toni Trenton, withdrawals 14 Consulting revenue 15 Wages expense 16 Insurance expense 17 Rent expense 18 Totals 680 2,900 3,660 9.600 1,730 26,650 6,880 30,200 24,920 1,620 8.32080 58,580 58,580 Required 1. Enter the unadjusted trial balance onto a work sheet. 2. Using th e following additional information, enter the adjustments onto the work sheet: a. Annual depreciation on the equipment is $1,500. balance in the Prepaid Rent account is for six months of rent commencing March 1, 2017 e. Unpaid and unrecorded wages at June 30 totalled $3,200. d. Accrued revenues at June 30 totalled $4,100. 3. Complete the work sheet. lculate the balance in the capital account as it would lusls Component: What effect does a loss have on the accounting ec appear on the June 30,2017, balance sheet. counting equation?

Solution

Trenton consulting Unadjusted Trial Balance June 30, 2017 Unadjusted Adjusted Balance sheet and statement of changes in equity Trial Balance Adjustments Trial Balance Income Statement Account Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash                  680 680                         680 Accounts Receivable              2,900          4,100 7000                      7,000 Prepaid Rent              3,660          2,440 1220                      1,220 Equipment              9,600 9600                      9,600                       1,500 Accumulated depreciation-equipment          1,500 1500                       1,730 Accounts Payable              1,730 1730                       3,200 wages Payable          3,200 3200                     26,650 Toni Trenton, Capital            26,650 26650                      6,880 Toni Trenton, Withdrawals              6,880 6880 Consulting revenue            30,200          4,100 34300 34300 Wages expense            24,920          3,200 28120 28120 Insurance expense              1,620 1620 1620 Rent expense              8,320          2,440 10760 10760 Depreciation expense          1,500 1500 1500 Totals $        58,580 $        58,580 $   11,240 $   11,240 $ 67,380 $ 67,380 $ 42,000 $ 34,300 Net Loss $    7,700 $                 7,700 $42,000 $ 42,000                   33,080                     33,080 Balance in capital account Beg Balance 26650 Less: Net loss 7700 Withdrawals 6880 14580 End. Balance $        12,070 Effects of loss on accounting equation, is that it reduces the capital of owner. and corresponding assets.