Business Accounting

Running Head: BUSINESS ACCOUNTING 0
Business Accounting

BUSINESS ACCOUNTING 1
Table of Contents
Adjusting journal entries.......................................................................................................................2
Trial balance..........................................................................................................................................2
Income Statement..................................................................................................................................4
Balance Sheet........................................................................................................................................4
Statement of Changes in Equity.............................................................................................................5
Trial balance......................................................................................................................................5
Reason for Creation...........................................................................................................................6
Reason for recording.........................................................................................................................7
Purpose of writing an adjusted trial balance......................................................................................7
Difference between the adjustment entries and closing journal entries..............................................8
References.............................................................................................................................................9

BUSINESS ACCOUNTING 2
Adjusting journal entries
Journalise the adjusted transactions
Particulars Debit Credit
Interest Expense A/c Dr. 39920
To Interest Payable A/c 39920
(for interest accrued on the mortgage but not paid)
Supplies Expense A/c Dr. 997.5
To Supplies A/c 997.5
(for ending supplies in hand recorded)
Insurance expense A/c Dr. 2980
To Prepaid 2980
(for reversal of prepaid insurance)
Prepaid Insurance 7980
To Insurance Expense 7980
(for adjustment entry passed)
Insurance Dr. 1596
To Cash 1596
(for amount paid )
Depreciation Expense- Furniture 18000
Depreciation Expense- office Equipment 38000
Depreciation Expense- Store Equipment 29000
Depreciation Expense- Automobile 39000
To Accumulated Depreciation 124000
(for depreciation adjusted )
Cash A/c Dr. 24950
To unearned Revenue 24950
Unearned Revenue Dr. 24950
To Revenue 24950
Trial balance
Paul services Trial Balance As At