Chapter 05 – Adjustments and the Worksheet
65. The adjustments made on the worksheet
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66. For each of the accounts listed below, enter the words, Increase or Decrease, in the Debit
and Credit columns to indicate the effects of each on the account balance.
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80. The balances of the ledger accounts for Oleman Services on January 31, 2013, and the
information needed for adjustments are shown below. Prepare the Trial Balance section,
record the adjustments, and complete the worksheet.
Adjustment information:
(a) The supplies were purchased on January 1, 2013. An inventory of supplies showed $600
on hand on January 31, 2013.
(b) The amount of Prepaid Insurance represents a payment made January 1, 2013, for a six-
month insurance policy.
(c) The equipment, purchased January 1, 2013, has an estimated useful life of 5 years with no
salvage value. The firm uses the straight-line method of depreciation.
Chapter 05 – Adjustments and the Worksheet
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Chapter 05 – Adjustments and the Worksheet
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Chapter 05 – Adjustments and the Worksheet
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