Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
30 35,000
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
30 42,000
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
P12. Determining Adjusting Entries and Tracing Their Effects to Financial Statements
(Continued)
2014
June Balance
Balance
Item
Unearned Rental Service Revenue Account No. 212
Date
Post.
2014
Post.
Date Item
Notes Payable Account No. 211
Balance
2014
June Balance
Balance
Accumulated Depreciation—Cars Account No. 149
Post.
Date Item
2014
Cars Account No. 148
Post.
Date Item
Balance
Post.
2014
S. Navarro, Capital Account No. 311
Balance
ItemDate
2014
Date Item
Post. Balance
Account No. 213Interest Payable
3-35
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Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
30 492,151
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
Balance
Item
Date Item
Salaries Expense Account No. 511
Balance
Date
Post.
2014
P12. Determining Adjusting Entries and Tracing Their Effects to Financial Statements
(Continued)
2014
Gas and Oil Expense Account No. 510
Post.
2014
June Balance
Balance
Rental Service Revenue Account No. 411
Post.
Date Item
2014
Account No. 313
Post.
Date Item
Balance
S. Navarro, Withdrawals
Balance
Advertising Expense Account No. 513
Post.
Date Item
2014
Balance
Rent Expense Account No. 514
Post.
Date Item
2014
3-36
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
2014
P12. Determining Adjusting Entries and Tracing Their Effects to Financial Statements
(Continued)
Depreciation Expense—Cars
Date
Account No. 517
Item
Post. Balance
2014
Post.
Date Item
Spare Parts Expense Account No. 516
Balance
Insurance Expense Account No. 515
Post.
2014
Date Item
Date Item
Balance
Maintenance Expense Account No. 518
Balance
Post.
2014
Interest Expense Account No. 519
Balance
Date Item
Post.
2014
3-37
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4.
15,708
19,830
4,400
P12. Determining Adjusting Entries and Tracing Their Effects to Financial Statements
(Continued)
USA Car Rental Service
Adjusted Trial Balance
June 30, 2014
Note: Prepaid Rent does not appear on the adjusted trial balance because it now has
a zero balance.
Cash
Accounts Receivable
Prepaid Insurance
3-38
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$513,826
$104,900
206,360
$ 66,567
112,196
USA Car Rental Service
P12. Determining Adjusting Entries and Tracing Their Effects to Financial Statements
(Continued)
USA Car Rental Service
Income Statement
For the Year Ended June 30, 2014
Salaries expense
Net income
Statement of Owner’s Equity
For the Year Ended June 30, 2014
S. Navarro, capital, June 30, 2013
Revenues:
Expenses:
Rental service revenue
Gas and oil expense
3-39
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
$ 15,708
19,830
Notes payable $ 78,000
Unearned rental service revenue 20,325
5.
P12. Determining Adjusting Entries and Tracing Their Effects to Financial Statements
(Concluded)
Adjusting entries affect net income on the income statement. After the adjustments
USA Car Rental Service
Assets
Liabilities
Balance Sheet
June 30, 2014
Cash
Accounts receivable
3-40
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Balance Balance
after after
Adjustment Adjustment
Interest Expense
Building
Depreciation Expense—
Wages ExpenseWages Payable
Amount of
Insurance Expense
(+ or –)
Adjustment
Statement AccountBalance Sheet Account (+ or –)
Income
Amount of
Upholstery Supplies Expense
Adjustment
3-41
Bal. 1,820 (b) 470 Bal. 9,240
Bal. 5,940 Bal. 11,000 (d) 730
Bal. 22,000 Bal. 76,200 Bal. 51,300
Bal. 5,400 Bal. 4,280 (a) 2,297
A. Chase, Withdrawals
P14. Determining Adjusting Entries, Posting to T Accounts, and Preparing an Adjusted Trial
Balance
1. and 2.
Unearned Service Revenue
Rent Expense Utilities Expense
Salaries Expense
Notes PayableAccounts Payable
Cash Accounts Receivable Office Supplies
Office EquipmentPrepaid Rent
Salaries Payable
Bal.
Interest Payable
Accumulated Depreciation—
Office Equipment
2,140
Office Supplies Expense
Service Revenue
A. Chase, Capital
3-42
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
3.
19,250
9,860
4.
a.
b.
Accounts Receivable
P14. Determining Adjusting Entries, Posting to T Accounts, and Preparing an Adjusted Trial
Balance (Concluded)
Scoop Consulting Service
Adjusted Trial Balance
December 31, 2014
Cash
The following financial statements are affected by the adjustments:
Balance sheet, income statement, statement of owner’s equity
Balance sheet, income statement, statement of owner’s equity
3-43
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.