Adjusting Journal Entries and Adjusted Trial Balance for Paul Services

STEP – 1
The Student ID is 090153.
STEP -2
The journal entries of the adjustment transactions are being recorded hereunder :
Date Particulars Dr/Cr
Amount
(Dr)
Amount
(Cr)
30.06.2016 Interest A/c Dr $12,000
To Interest Payable A/c $12,000
(Being Interest accrued on Mortgage loan but not yet
paid)
30.06.2016 Insurance charged to P/L Dr $1,920
To Prepaid Insurance $1,920
(Being Prepaid Insurance charges charged to Profit and
loss account )
30.06.2016 Depriciation on office Furniture A/c Dr $6,000
To office furniture A/c $6,000
(Being Depriciation on Office Furniture Provided for the
year)
30.06.2016 Depriciation on office Equipment A/c Dr $12,000
To office equipment A/c $12,000
(Being Depriciation on Office Equipments Provided for
the year)
30.06.2016 Depriciation on store Equipment A/c Dr $9,000
To store equipment A/c $9,000
(Being Depriciation on Store Equipments Provided for
the year)
30.06.2016 Depriciation on Automobile A/c Dr $12,000
To Automobile A/c $12,000
(Being Depriciation on Automobiles Provided for the
year)
30.06.2016 Unearned Revenue A/c Dr $7,500
To Revenue A/c $7,500
(Being Unearned Revenue realised during the year)

The Journal entry for the closing supplies amounting to $300 is not journalised since the same does not
form the part of the trial balance and is shown separately in the income statement and the balance
sheet and no journal entry for the same is required .
STEP – 3
Worksheet after considering the adjustment entries
PAUL SERVICES
Worksheet
For the year ended 30th June, 2016
Account
Unadjusted Trial
Balance Adjustments Adjusted Trial Balance
Debit Credit Debit Credit Debit Credit
Cash at Bank 19,890 19,890
Accounts Receivable 6,630 6,630
Supplies 1,200 1,200
Prepaid Insurance 2,400 1,920 480
Office Furniture 30,000 6,000 24,000
Office Equipment 60,000 12,000 48,000
Store Equipment 90,000 9,000 81,000
Automobile 120,000 12,000 108,000
Accounts Payable 13,260 13,260
Interest Payable 19,890 12,000 31,890
Unearned revenue 15,000 7,500 7,500
Loan Payable 6,000 6,000
Mortgage Payable 120,000 120,000
Paul's Capital 45,120 45,120
Paul's Drawings 120 120

Revenue 120,000 7,500 127,500
Advertising Expense 400 400
Automobile Expense 5,775 5,775
Depreciation Expense - Furniture - 6,000 6,000
Depreciation Expense - Equipment - 12,000 12,000
Depreciation Expense - Store
Equipment - 9,000 9,000
Depreciation Expense - Automobile - 12,000 12,000
Insurance Expense 300 1,920 2,220
Maintenance Expense 1,400 1,400
Miscellaneous Expense 1,155 1,155
Interest Expense - 12,000 12,000
Grand Total 339,270 339,270 60,420 60,420 351,270 351,270