Chapter 03 – Adjusting Accounts for Financial Statements
Exercise 3-16 (10 minutes)
Dec. 31 Net Sales ………………………………………………. 1,014,345
Income Summary ……………………………. 1,014,345
Exercise 3-17 (25 minutes)
WESTCOTT COMPANY
December 31, 2013
Unadjusted
Trial Balance
Dr. Cr.
Adjustments
Dr. Cr.
Adjusted
Trial Balance
Dr. Cr.
Cash ………………………………………………………..
21
21
Accounts receivable ……………………………..
12
12
Supplies ………………………………………………….
24
(d)
9
15
Prepaid insurance ………………………………….
18
(e)
15
3
Equipment …………………………..………………….
39
39
Accumulated depreciation–Equip ……...
15
(a)
3
18
Accounts payable ………………………………….
6
6
Salaries payable …………………………………….
(b)
6
6
Unearned revenue ………………………………...
12
(c)
12
Common stock ……………………………………...
10
10
Retained earnings ………………………………….
32
32
Dividends ………………………………………………..
6
6
Revenue ………………………………………………….
75
(c)
12
87
Depreciation expense– Equipment …….
(a)
3
3
Salaries expense …………………………………...
18
(b)
6
24
Insurance expense ………………………………..
(e)
15
15
Supplies expense ………………………………….
(d)
9
9
Utilities expense ……………………………………..
12
___
__
__
12
___
Totals ……………………………………………………….
150
150
45
45
159
159
Chapter 03 – Adjusting Accounts for Financial Statements
PROBLEM SET A
Problem 3-1A (10 minutes)
1. E 5. C 9. D
Problem 3-2A (35 minutes)
Part 1 Adjustment (a)
Dec. 31 Office Supplies Expense ………………………….. 14,846
Office Supplies ………………………………….. 14,846
To record cost of supplies used
