24-25 Trial Balance Introduction Accounting 1

Accounting Worksheet Introductions 4.03

Definition and Purpose

This is a Ten-Column Worksheet with 5 Sections used to prove the general ledger.

1. Trial Balance

2. Adjustments

3. Adjusted Trial Balance

4. Income Statement

5. Balance Sheet
   

Trial Balance Worksheet

How to complete it...

Trial Balance Section

1. Enter the Account Name and Number (from ALL account ledgers)

2. Enter the balance in the debit or credit column

3. (be sure you include the account Income Summary between the Drawing and the first Expense Account, it will have no balance!)

4. Rule the debit and credit columns single, then double if accurate

ADJUSTMENTS (WHY!)
Match Revenue and Expenses

Recording Supplies Adjustements

1. Write the debit amounts in the Adjustments Debit Column.

2. Write the credit Adjustments in the Credit Column.

3. Lable the two parts of the Supplies-Store Adjustment with a small a and the two parts of a different Supplies-Office account with b Prepaid Insurance 2 entries will then be c

Discuss Adjustments
& Prooving

Multiple Choice

On a trial balance

• all general ledger account titles are listed
• only general ledger accounts that have balances are listed
• only accounts with debit balances are listed
• only accounts with credit balances are listed

Multiple Choice

What is the purpose of adjusting entries for prepaid expenses?

• To decrease assets

• To match revenues and expenses

• To increase liabilities

• To adjust the trial balance

Multiple Choice

When adjusting prepaid accounts, which accounts are credited?

• Revenues

• Assets

• Expenses

• Liabilities

Multiple Choice

When adjusting prepaid accounts, which accounts are debited?

• Revenues

• Assets

• Expenses

• Liabilities

Calculating Adjustments Needed
to Supplies

Beginning Balance - Actual Balance = Adjustment

If the beginning Supplies balance is $2,200, and the ending Supplies balance is $700, the correct adjustment on the worksheet is to:
debit Supplies Expenses and credit Supplies, $1,500.

Calculating Adjustments Needed
to Prepaid Insurance

(Beginning Balance/Months in a Year)
multiply by the number of months in the period if greater than 1

If the beginning Prepaid Insurance balance is $4,800 and the ending the correct adjustment on the worksheet at the end of one every month:
debit Preapid Insurance Expenses and credit Prepaid Insurance, $400.

Multiple Choice

The company paid $2,400 for an annual insurance premium at the beginning of the year. What is the adjusting entry at the end of the first month?

• Debit Insurance Expense $200, Credit Prepaid Insurance $200

• Debit Prepaid Insurance $200, Credit Insurance Expense $200

• Debit Prepaid Insurance $2,400, Credit Insurance Expense $2,400

• Debit Insurance Expense $2,400, Credit Prepaid Insurance $2,400

Multiple Choice

The company paid $2,400 for an annual insurance premium at the beginning of the year. What is the adjusting entry at the end of the first month?

• Debit Insurance Expense $200, Credit Prepaid Insurance $200

• Debit Prepaid Insurance $200, Credit Insurance Expense $200

• Debit Prepaid Insurance $2,400, Credit Insurance Expense $2,400

• Debit Insurance Expense $2,400, Credit Prepaid Insurance $2,400

Multiple Choice

What is true about Prepaid Insurance adjusting entries?

• You will always divide by 12 to calculate

• The ending balance is the same

• The adjustment is the same value each month

• The adjustment will be different values each month

Multiple Choice

The company paid $3,000 for a three-month advertising contract at the beginning of the quarter. What is the adjusting entry at the end of the first month?

• Debit Advertising Expense $1,000, Credit Prepaid Advertising $1,000

• Debit Prepaid Advertising $1,000, Credit Advertising Expense $1,000

• Debit Prepaid Advertising $3,000, Credit Advertising Expense $3,000

• Debit Advertising Expense $3,000, Credit Prepaid Advertising $3,000