Preparing Adjusting Entries in a Worksheet
Following is the unadjusted trial balance of Skylar Gaming, Inc. at the end of its first year of operations, December 31, 20×7:
The following additional information is available:
- Skylar Gaming, Inc. needs to accrue $2,000 in salaries that will not be paid until next month.
- Skylar Gaming, Inc. has earned $2,000 of the services that were paid for in advance as included in the unearned revenue account.
- At the end of the period, Skylar Gaming, Inc. has provided services in the amount of $500 to another customer (John Gartner). However, Skylar has not billed them yet since they only issue bills at the beginning of each month.
- Skylar Gaming, Inc. needs to record the annual $1,025 of depreciation on the equipment.
- One month of the 12-month insurance policy in prepaid insurance has been used up, and a journal entry is needed to reflect this.
- At the end of the period, $125 in supplies are remaining.
- Prepare all necessary adjusting entries at December 31, 20×7 Descriptions are not needed.
- Using the below linked template prepare an adjusted trial balance at December 31, 20×7.
- Using a worksheet template, prepare an income statement, statement of retained earnings, and a balance sheet.
- Prepare closing entries including descriptions.
|ACT300 Principles of Accounting|
|Module 3: Critical Thinking Template|
|Skylar Gaming, Inc. Work Sheet For Month Ended December 31, 201X|
|Account (1)||Unadjusted Trial balance||Adjusting entries (2)||Adjusted trial balance (3)||Income statement (4)||Balance sheet & Statement of Retained Earnings|
|DEPRECIATION EXP – EQUIPMENT||2,000||1,025||3,025||3,025|
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