WORKSHEET

Unadjusted TB(2) Adjustments(3)

Account titles (1)
Debit Credit Debit

Cash 4,500
Accounts Receivable 6,000 1,700
Supplies 1,900
Prepaid insurace 3,600
Equipment 11,400
Accumulated
depreciation-equipment
Accounts payable 4,500
Unearned service
2,000 1,600
revenue
Salaries payable
Share capital-ordinary 18,700
Service revenue 9,500
Salaries and wages
6,400 1,104
expense
Rent expense 900
Supplies ex 900
Utilities ex 250
Insurace ex 150
Depreciation ex 190

TOTAL 34,700 34,700 5,894

Accounts
1 Supplies expense
Supplies
2 Utilities expense
Account payable
3 Insurance expense
Prepaid insurance
4 Unearned service revenue
Service revenue
5 Salaries expense
 Salaries payable
6 Depreciation exp
Accumulated depreciation-equipment
7 Accounts receivable
Services rev
SHEET

Adjustments(3) Adjusted TB(4)

Credit Debit Credit

4,500
7,700
900 1,000
150 3,450
11,400

190 190

250 4,750

400

1,104 1,104
18,700
3,300 12,800

7,504

900
900
250
150
190

5,894 37,944 37,944

Dr Cr
900
900
250
250
150
150
1,600
1,600
1,104
 1,104
190
ation-equipment 190
1,700
1,700
 Lazy River Resort
Trial Balance
May 31, 2020

Account number Debit Credit

101 Cash 4,608
126 Supplies 3,288
130 Prepaid insurance 3,608
140 Land 13,208
141 Buildings 60,000
149 Equipment 14,000

201 Accounts payable 5,908

208 Unearned rent revenue 4,508

275 Mortgage Payable 40,000
311 Share Capital—Ordinary 42,588

332 Dividends 1,000

429 Rent Revenue 11,508

610 Advertising Expense 600

726 Salaries and Wages Expense 3,300

732 Utilities Expense 900
104,512 104,512

In addition to those accounts listed on the trial balance, the chart of accounts for Lazy River Resort also contains
the following accounts and account numbers: No. 142 Accumulated Depreciation—Buildings, No. 150 Accumulated
Depreciation—Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 619
Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.

Other data:
1. Prepaid insurance is a 1-year policy starting May 1, 2020.
2. A count of supplies shows €758 of unused supplies on May 31.
3. Annual depreciation is €3,600 on the buildings and €1,500 on equipment.
4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.)
5. Two-thirds of the unearned rent revenue is recognized as revenue.
6. Salaries of €958 are accrued and unpaid at May 31.
 WORKSHEET

Unadjusted TB(2) Adjustments(3)

Account titles (1)
Debit Credit Debit Credit
Cash 4,608
Supplies 3,288 2,530
Prepaid insurace 3,608 301
Land 13,208
Buildings 60,000
Equipment 14,000
Accumulated
depreciation - 300
Buildings
Accumulated
depreciation - 125
Equipment
Interest payable 200
Accounts payable 5,908
Salaries and wage
958
payable
Unearned rent
4,508 3,005
revenue
Mortgage payable 40,000

Share capital-ordinary 42,588

Dividends 1,000
Rent revenue 11,508 3,005
Advertising Expense 600
Salaries and wages
3,300 958
rt also contains expense
150 Accumulated Utilities expense 900
Insurance expense 301
e Expense. Supplies expense 2,530

Depreciation expense 425

Interest expense 200

TOTAL 104,512 104,512 7,419 7,419

Accounts
1 Insurance Expense
 Prepaid Insurance
2 Supplies Expense
Supplies
3 Depreciation Expense
Accumulated depreciation - Buildings
Accumulated depreciation - Equipment
4 Interest expense
Interest payable
5 Unearned rent revenue
Rent revenue
6 Salaries and wage expense
Salaries and wage payable
 Adjusted TB(4)
Debit Credit
4,608
758
3,307
13,208
60,000
14,000

300

125

200
5,908

958

1,503

40,000

42,588

1,000
14,513
600

4,258

900
301
2,530

425

200

106,095 106,095

Dr Cr
301
 301
2,530
2,530
425
300
125
200
200
3,005
3,005
958
958
 Accounts Dr Cr
1 Insurance expense 4840
Prepaid Insurance 4840
2 Unearned rent revenue 75500
Rent revenue 75500
3 Interest expense 1200
Interest payable 1200
4 Salaries expense 2000
Salaries payable 2000
P3.5 (LO 2, 3, 4) On November 1, 2020, the account balances of Beck Equipment Repair were as follows.

No. Debit No.

101 Cash 2,608 154
112 Accounts Receivable 4,458 201
126 Supplies 2,008 209
153 Equipment 12,000 212
311
320
21,074

During November, the following summary transactions were completed.

Nov. 8 Paid £1,700 for salaries due employees, of which £700 is for October salaries.
10 Received £3,620 cash from customers on account.
12 Received £4,308 cash for services performed in November.
15 Purchased equipment on account £2,208.
17 Purchased supplies on account £700.
20 Paid creditors on account £2,700.
22 Paid November rent £408.
25 Paid salaries £1,708.
27 Performed services on account and billed customers for these services £3,408.
29 Received £600 from customers for future service.
Adjustment data consist of:
1. Supplies on hand £1,400.
2. Accrued salaries payable £350.
3. Depreciation for the month is £200.
4. Services related to unearned service revenue of £1,220 were performed.

Journal entries:
Date Accounts Dr Cr
8 Salaries expense 1,000
Salaries payable 700
Cash 1,700
10 Cash 3,620
Accounts receivable 3,620
12 Cash 4,308
Services revenue 4,308
15 Equipment 2,208
Accounts payable 2,208
17 Supplies 700
Accounts payable 700
20 Accounts payable 2,700
Cash 2,700
22 Rent expense 408
 Cash 408
25 Salaries and wages expense 1,708
Cash 1,708
27 Accounts receivable 3,408
Services revenue 3,408
29 Cash 600
Unearned service revenue 600
Beck Equipment Repair were as follows.
WORKSHEE
Credit
Accumulated Depreciation—Equipment 2,000
Account titles (1)
Accounts Payable 2,808
Unearned Service Revenue 1,408 Cash
Salaries and Wages Payable 700 Accounts receivable
Share Capital—Ordinary 11,000 Supplies
Retained Earnings 3,158 Equipment
21,074 Accumulated depreciation - Equipment
Accounts payable
Unearned service revenue
for October salaries. Salaries and wages payable
Share capital-ordinary
Retained earnings
Service revenue
Rent expense
Salaries and wages expense
Supplies expense
Depreciation expense
e services £3,408.

performed. TOTAL

Adjusting entries:

4
 WORKSHEET

Unadjusted TB(2) Adjustments(3) Adjusted TB(4)

Debit Credit Debit Credit Debit Credit
4,620 4,620
4,246 4,246
2,708 1,400 1,308
14,208 14,208
2,000 200 2,200
3,016 3,016
2,008 1,220 788
- 350 350
11,000 11,000
3,158 3,158
7,716 1,220 8,936
408 408
2,708 350 3,058
1,400 1,400
200 200

28,898 28,898 3,170 3,170 29,448 29,448

Accounts Dr Cr
Supplies expense 1,400
Supplies 1,400
Salaries expense 350
Salaries payable 350
Depreciation expense 200
Accumulated depreciation - Equipment 200
Unearned service revenue 1,220
Service revenue 1,220
 TRIAL BALANCE (UNADJUSTED)
Title of accounts Debit Credit
Cash 4,620
Accounts receivable 4,246
Supplies 2,708
Equipment 14,208
Accumulated depreciation - Equipment 2,000
Accounts payable 3,016
Unearned service revenue 2,008
Salaries and wages payable -
Share capital 11,000
Retained earnings 3,158
Service revenue 7,716
Rent expense 408
Salaries and wages expense 2,708
Total 28,898 28,898