Unadjusted Trial Balance Adjustments Adjusted Trial Balance

Account Title
Debit Credit Debit Credit Debit
Cash 20,430 20,430
Accounts Receivable 5,900 5,900
Office Supplies 22,800 18,480 4,320
Prepaid Rent 36,000 12,000 24,000
Equipment 80,000 80,000
Accumulated Depreciation 1,100
Accounts Payable 5,200
Notes Payable 20,000
Utilities Payable 3,964
Interest Payable 150
Unearned Revenue 4,000 3,000
Common Stock 100,000
Service Revenue 82,600 3,000
Wages Expense 38,200 38,200
Supplies Expense 18,480 18,480
Rent Expense 12,000 12,000
Depreciation Expense 1,100 1,100
Miscellaneous Expense 3,470 3,470
Electricity Expense 2,470 2,470
Telephone Expense 1,494 1,494
Dividend 5,000 5,000
Interest Expense 150 150
Totals 215,764 215,764 34,730 34,730 217,014
Net Income
Adjusted Trial Balance Income Statement Balance Sheet
Credit Debit Credit Debit Credit
20,430
5,900
4,320
24,000
80,000
1,100 1,100
5,200 5,200
20,000 20,000
3,964 3,964
150 150
1,000 1,000
100,000 100,000
85,600 85,600
38,200
18,480
12,000
1,100
3,470
2,470
1,494
5,000
150
217,014 77,364 85,600 139,650 131,414
8,236 8,236
85,600 85,600 139,650 139,650
Company A was incorporated on January 1, 2010 with an initial capital of 5,000 shares of common stock having $20 par va

Date
2-Jan
3-Jan

4-Jan
13-Jan
13-Jan
14-Jan
18-Jan
23-Jan
25-Jan
26-Jan
28-Jan
31-Jan
31-Jan
31-Jan
31-Jan
Company A was incorporated on January 1, 2010 with an initial capital of 5,000 shares of common stock having $20 par value. During t

Transaction
An amount of 36,000 was paid as advance rent for three months.
Paid 60,000 cash on the purchase of equipment costing 80,000. The remaining amount was recognize

Purchased office supplies costing 17,600 on account.

Provided services to its customers and received 28,500 in cash.
Paid the accounts payable on the office supplies purchased on January 4.
Paid wages to its employees for first two weeks of January, aggregating 19,100.
Provided 54,100 worth of services to its customers. They paid 32,900 and promised to pay the remai
Received 15,300 from customers for the services provided on January 18.
Received 4,000 as an advance payment from customers.
Purchased office supplies costing 5,200 on account.
Paid wages to its employees for the third and fourth week of January: 19,100.
Paid 5,000 as dividends.
Received electricity bill of 2,470.
Received telephone bill of 1,494.
Miscellaneous expenses paid during the month totaled 3,470
 Rabnawaz & Sons
Journal Entries

Date Account Debit Credit

1-Jan Cash 100,000
Common Stock 100,000
2-Jan Prepaid Rent 36,000
Cash 36,000
3-Jan Equipment 80,000
Cash 60,000
Notes Payable 20,000
4-Jan Office Supplies 17,600
Accounts Payable 17,600
13-Jan Cash 28,500
Service Revenue 28,500
13-Jan Accounts Payable 17,600
Cash 17,600
14-Jan Wages Expense 19,100
Cash 19,100
18-Jan Cash 32,900
Accounts Receivable 21,200
Service Revenue 54,100
23-Jan Cash 15,300
Accounts Receivable 15,300
25-Jan Cash 4,000
Unearned Revenue 4,000
26-Jan Office Supplies 5,200
Accounts Payable 5,200
28-Jan Wages Expense 19,100
Cash 19,100
31-Jan Dividends 5,000
Cash 5,000
31-Jan Electricity Expense 2,470
Utilities Payable 2,470
31-Jan Telephone Expense 1,494
Utilities Payable 1,494
31-Jan Miscellaneous Expense 3,470
Cash 3,470
 Rabnawaz & Sons
Ledger Accounts
31-Jan-17

Asset Accounts

Cash Accounts Receivable Office Supplies

100,000 ### 21,200 15,300 ###
28,500 ### 5,200
32,900 ### 5,900 22,800
15,300 ###
4,000 ###
###
20,430 ###

Liability Accounts

Accounts Payable Notes Payable Utilities Payable

17,600 ### 20000
###
5,200 20,000

Equity Accounts

Common Stock
###
100,000

Revenue, Dividend and Expense Accounts

Service Revenue Dividend Wages Expense

### 5,000 19,100
### 19,100
82,600 5,000 38,200
Office Supplies Prepaid Rent Equipment
### ###
80,000
36,000

Utilities Payable Unearned Revenue

2470 4000
1494
3,964 4,000

Wages Expense Miscellaneous Expense Electricity Expense

3,470 2,470
2,470
3,470
Telephone Expense
1,494
1,494
 Rabnawaz & Sons
Unadjusted Trial Balance
31-Jan-17

Account Debit Credit

Cash 20,430
Accounts Receivable 5,900
Office Supplies 22,800
Prepaid Rent 36,000
Equipment 80,000
Accounts Payable 5,200
Notes Payable 20,000
Utilities Payable 3,964
Unearned Revenue 4,000
Common Stock 100,000
Service Revenue 82,600
Wages Expense 38,200
Miscellaneous Expense 3,470
Electricity Expense 2,470
Telephone Expense 1,494
Dividend 5,000
Total 215,764 215,764
 Rabnawaz & Sons
adjusting entries
31-Jan-17

Date Account Debit Credit

31-Jan Supplies Expense 18,480
Office Supplies ###
Supplies Expense = $22,800 − $4,320 = $18,480
31-Jan Rent Expense 12,000
Prepaid Rent ###
Rent Expense = $36,000 ÷ 3 = $12,000
31-Jan Depreciation Expense 1,100
Accumulated Depreciation 1,100
Depreciation Expense = ($80,000 − $14,000) ÷ (5 × 12) =
31-Jan Interest Expense 150
Interest Payable 150
Interest Expense = $20,000 × (9% ÷ 12) = $150
31-Jan Unearned Revenue 3,000
Service Revenue 3,000
 Rabnawaz & Sons
Adjusted Trial Balance
31-Jan-17

Account Debit Credit

Cash 20,430 -
Accounts Receivable 5,900 -
Office Supplies 4,320 -
Prepaid Rent 24,000 -
Equipment 80,000 -
Accumulated Depreciation - 1,100
Accounts Payable - 5,200
Utilities Payable - 3,964
Unearned Revenue - 1,000
Interest Payable - 150
Notes Payable - 20,000
Common Stock - 100,000
Service Revenue - 85,600
Wages Expense 38,200 -
Supplies Expense 18,480 -
Rent Expense 12,000 -
Miscellaneous Expense 3,470 -
Electricity Expense 2,470 -
Telephone Expense 1,494 -
Depreciation Expense 1,100 -
Interest Expense 150 -
Dividend 5,000 -
Total 217,014 217,014
 Rabnawaz & Sons
closing entries
31-Jan-17
Note Date Account Debit Credit
1 31-Jan Service Revenue 85,600
Income Summary 85,600
31-Jan Income Summary 77,364
Wages Expense 38,200
Supplies Expense 18,480
Rent Expense 12,000
Miscellaneous Expense 3,470
Electricity Expense 2,470
Telephone Expense 1,494
Depreciation Expense 1,100
Interest Expense 150
31-Jan Income Summary 8,236
Retained Earnings 8,236
31-Jan Retained Earnings 5,000
Dividend 5,000
 Rabnawaz & Sons
closing entries
31-Jan-17

Account Debit Credit

Cash 20,430 -
Accounts Receivable 5,900 -
Office Supplies 4,320 -
Prepaid Rent 24,000 -
Equipment 80,000 -
Accumulated Depreciation - 1,100
Accounts Payable - 5,200
Utilities Payable - 3,964
Unearned Revenue - 1,000
Interest Payable - 150
Notes Payable - 20,000
Common Stock - 100,000
Retained Earnings - 3,236
Total 134,650 134,650
 Rabnawaz & Sons
Income Statement
For the month ended December 31, 2010

Revenues:
Service Revenue 85,600
Total Revenues 85,600
Expenses:
Wages Expense 38,200
Supplies Expense 18,480
Rent Expense 12,000
Depreciation Expense 1,100
Miscellaneous Expense 3,470
Electricity Expense 2,470
Telephone Expense 1,494
Interest Expense 150

Total Expenses 77,364

Net Income 8,236
 Rabnawaz & Sons
Balance Sheet
As on December January 31, 2011

ASSETS LIABILITIES AND EQUITY

Current Assets: Liabilities:
Cash 20,430 Accounts Payable 5,200
Accounts Receivable 5,900 Utilities Payable 3,964
Office Supplies 4,320 Unearned Revenue 1,000
Prepaid Rent 24,000 Interest Payable 150
Total Current Assets 54,650 Notes Payable 20,000
Non-Current Assets: Total Liabilities 30,314
Equipment 80,000 EQUITY
Accumulated Depreciation 1,100 Common Stock 100,000
Net Non-Current Assets 78,900 Retained Earnings 3,236
Total Assets 133,550 Total Liabilities and Equity 133,550