Exercise on Adjusting Entries, Trial Balance

Exercise for Chapter 1: Adjusted trial balance Submission date: 28 September 2016 through online learning sstem

OPARA OPARA Bhd. opened for business on 1 June 2015. Its accounts from the ledger ournal on !1 August 2015 are as follo"s. Account #ash Prepaid Insurance )upplies *and Buildings +,uipment Accounts Pa-able nearned Rent Re/enue $ortgage Pa-able )hare capital i/idends Rent re/enue )alaries and "ages epense tilities epenses $aintenance and repairs epense

Balance R$1%&'00 (&500 2&'00 20&000 120&000 1'&000 (&500 (&'00 50&000 100&000 5&000 '&200 ((&00 %&200 !&'00

Other data that not recorded -et is as follo"s3 1! 4he balance in prepaid insurance is a one-ear premium paid on 1 June 2015. 2! An in/entor- count on !1 ! 1 August sho"s R$ '50 of supplies on hand. "! Annual depreciation rates are (6 for buildings and 106 for e,uipment. )al/age /alue of both is estimated to be 106 of cost each. Both assets "ere purchased on 1 June 2015. #! nearned Rent Re/enue of R$!&00 "as earned prior to !1 ! 1 August. $! )alaries of R$!75 "ere unpaid at !1August. 6! Rentals of R$00 "ere due from tenants at !1August. %! 4he mortgage interest rate is 6 per -ear. 4he mortgage dated 1 June 2015. &E'()&E*:

8a9 Prepare Prepare the nadusted nadusted 4rial 4rial Balance of OPAR OPARA A Bhd on !1August !1August 2015 8b9 Journa Journali: li:ee the adusting adusting entries entries on !1 August August for the !mont !month h period period 1 June ;!1August ;!1August 2015. 8Omit eplanations.9 8c9 Prepare Prepare an adusted adusted trial trial balance balance on !1August !1August 2015.

+,A&A -.* (/A*(SE*&)A -AA/CE "1 A(3(S4 201$

#ash Prepaid Insurance )upplies *and Buildings +,uipment Accounts Pa-able nearned Rent Re/enue $ortgage Pa-able #ommon )toc< i/idends Rent Re/enue )alaries and =ages +pense tilities +penses $aintenance and Repairs +pense

ebit R$ 1%&'00 (&500 2&'00 20&000 120&000 1'&000

#redit

R$(&500 (&'00 50&000 100&000 5&000 '&200 ((&00 %&200 !&'00 R$2(5&!00

R$2(5&!00

5b Adjusted Entries on "1 August 201$

1.

Aug. !1

Insurance +pense 8R$(&500 > !?129@@ Insurance +pense Pa-able@@@@

2.

Aug. !1

1&125 1&125

)upplies +pense 8R$2&'00 ; R$'509........................................................... 1&%50 )upplies..................................................................................................... 1&%50

!.

Aug. !1

epreciation +pense........................................................................................ 1&00 Accumulated epreciation 

  Buildings................................................................................................ 1&00 8R$120&000 ; R$12&000  R$10&000C R$10&000 > (6  R$(&!20 per -earC R$(&!20 > !?12  R$1&009

Aug. !1

epreciation +pense........................................................................................ !'0 Accumulated epreciation    +,uipment.............................................................................................. !'0 8R$1'&000 ; R$1&'00  R$1(&(00C R$1(&(00 > 106  R$1&((0C R$1&((0 > !?12  R$!'09

(.

Aug. !1

nearned Rent Re/enue.................................................................................... !&00 Rent Re/enue............................................................................................ !&00

5.

Aug. !1

)alaries and =ages +pense............................................................................. !75 )alaries and =ages Pa-able...................................................................... !75

'.

Aug. !1

Accounts Recei/able......................................................................................... 00

Rent Re/enue............................................................................................ 00

7.

Aug. !1

Interest +pense................................................................................................ 1&000 Interest Pa-able

D8R$50&000 > 69 > !?12E.................................................................. 1&000 8#9

OPARA Bh Adusted 4rial Balance August !1& 2015 ebit

#redit

#ash........................................................................................................... R$ 1%&'00 Accounts Recei/able.................................................................................

00

Prepaid Insurance 8R$(&500 ; R$1&1259................................................

!&!75

)upplies 8R$2&'00 ; R$1&%509...............................................................

'50

*and..........................................................................................................

20&000

Buildings...................................................................................................

120&000

Accumulated epreciationBuildings..................................................... +,uipment.................................................................................................

R$ 1&00 1'&000

Accumulated epreciation+,uipment...................................................

!'0

Accounts Pa-able......................................................................................

(&500

nearned Rent Re/enue 8R$(&'00 ; R$!&009......................................

00

)alaries and =ages Pa-able......................................................................

!75

Interest Pa-able.........................................................................................

1&000

$ortgage Pa-able.....................................................................................

50&000

)hare #apitalOrdinar-...........................................................................

100&000

Retained +arnings.....................................................................................

i/idends..................................................................................................

5&000

Rent Re/enue 8R$'&200 F R$!&00 F R$009....................................

%0&00

)alaries and =ages +pense 8R$((&00 F R$!759.................................

(5&175

tilities +pense.......................................................................................

%&200

$aintenance and Repairs +pense............................................................

!&'00

Insurance +pense.....................................................................................

1&125

)upplies +pense......................................................................................

1&%50

epreciation +pense8Buildings9..........................................................

1&00

epreciation +pense8+,uipment9........................................................

!'0

Interest +pense........................................................................................

1&000 R$2(&%15

R$2(&%15