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Subject Author Date
Accounting adjustment pars 02-03-2007
Posted by pars on February 3, 2007, 7:06 pm
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 Hi dears,
could you please help me to understand these concepts, these are some
adjustments that i have never faced and i dont know how should i
change my new blalnce sheet and what is going in debit side and what
is going in credit side?
I really appreciate it,

thanks,


Accounting adjustment?

<<Debit Balances>>
Account balances on February 28(the end of its fiscal year)
cash ................................. 88,860
A/R .................................
Merchandise inventory ......903,130
store equipment ................70,970
supplies inventory .............17,480
prepaid insurance .............12,430
selling expense..................10,88...
sales salaries.....................4...
miscellaneous general expense ......18,930
sales discounts..................3,3...
interest expense................ 7,100
social security tax expense.......3,400
total............................
<<Credit balances>>
accumulated depreciation on store equipment 11,420
notes payable..... 88,500
A/P ......................88,970
common stock....100,000
Retained earnings ...33,500
sales ..............988,700

Data for adjustment:

1)cost of merchandise sold 604,783
2)store equipment had a useful life of seven years(all equipment was
less than 7years old)
3)supplies inventory February 28, 3877.purchases of suppliers during
the year were debited to the supplies Inventory account.)
4)The note payable was at an interest rate of 9 percent, payable
monthly. It had been outstanding thought out the year.
5)the statement sent by the bank adjusted for checks outstanding shows
a balance of 88110. The difference represented bank service changes.
Thanks,


Posted by Beverly on February 4, 2007, 1:02 pm
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>Hi dears,
>could you please help me to understand these concepts, these are some
>adjustments that i have never faced and i dont know how should i
>change my new blalnce sheet and what is going in debit side and what
>is going in credit side?
>I really appreciate it,
>
>thanks,
>
>
>Accounting adjustment?
>
><<Debit Balances>>
>Account balances on February 28(the end of its fiscal year)
>cash ................................. 88,860
>A/R .................................
>Merchandise inventory ......903,130
>store equipment ................70,970
>supplies inventory .............17,480
>prepaid insurance .............12,430
>selling expense..................10,88...
>sales salaries.....................4...
>miscellaneous general expense ......18,930
>sales discounts..................3,3...
>interest expense................ 7,100
>social security tax expense.......3,400
>total............................
><<Credit balances>>
>accumulated depreciation on store equipment 11,420
>notes payable..... 88,500
>A/P ......................88,970
>common stock....100,000
>Retained earnings ...33,500
>sales ..............988,700

The first thing you must do is determine why your balance sheet is out
of balance.
>
>Data for adjustment:
>
>1)cost of merchandise sold 604,783

COGS                        604,783
Merchandise Inventory                604,783
COGS will ultimately become a debit to Retained Earnings.

>2)store equipment had a useful life of seven years(all equipment was
>less than 7years old)

Impossible to determine adjustment amount without more information
such as depreciation method used and a detailed list of the equipment
and purchase dates.

>3)supplies inventory February 28, 3877.purchases of suppliers during
>the year were debited to the supplies Inventory account.)

Supplies Expense        13,603
Supplies Inventory                13,603
Supplies Expense will ultimately become a debit to Retained Earnings.

>4)The note payable was at an interest rate of 9 percent, payable
>monthly. It had been outstanding thought out the year.

Interest Expense                865
A/P                                865
To recognize the portion of interest yet to be paid.

>5)the statement sent by the bank adjusted for checks outstanding shows
>a balance of 88110. The difference represented bank service changes.

Bank Fees        750
Cash                        750
Bank Fees will ultimately become a debit to Retained Earnings.
        
>Thanks,

Beverly

Posted by dar7yl on February 6, 2007, 3:37 pm
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Sounds like you should be doing your own homework.

> Hi dears,
> could you please help me to understand these concepts, these are some
> adjustments that i have never faced and i dont know how should i
> change my new blalnce sheet and what is going in debit side and what
> is going in credit side?
> I really appreciate it,
>
> thanks,
>
>
> Accounting adjustment?
>
> <<Debit Balances>>
> Account balances on February 28(the end of its fiscal year)
> cash ................................. 88,860
> A/R .................................
> Merchandise inventory ......903,130
> store equipment ................70,970
> supplies inventory .............17,480
> prepaid insurance .............12,430
> selling expense..................10,88...
> sales salaries.....................4...
> miscellaneous general expense ......18,930
> sales discounts..................3,3...
> interest expense................ 7,100
> social security tax expense.......3,400
> total............................
> <<Credit balances>>
> accumulated depreciation on store equipment 11,420
> notes payable..... 88,500
> A/P ......................88,970
> common stock....100,000
> Retained earnings ...33,500
> sales ..............988,700
>
> Data for adjustment:
>
> 1)cost of merchandise sold 604,783
> 2)store equipment had a useful life of seven years(all equipment was
> less than 7years old)
> 3)supplies inventory February 28, 3877.purchases of suppliers during
> the year were debited to the supplies Inventory account.)
> 4)The note payable was at an interest rate of 9 percent, payable
> monthly. It had been outstanding thought out the year.
> 5)the statement sent by the bank adjusted for checks outstanding shows
> a balance of 88110. The difference represented bank service changes.
> Thanks,
>



Posted by Beverly on February 7, 2007, 12:58 am
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wrote:

>Sounds like you should be doing your own homework.

Lots of folks come here for us to do their homework. What takes me
five minutes to do can have years of negative consequences for the
student who now won't LEARN the material. Keeps me employed. ;)

>
>> Hi dears,
>> could you please help me to understand these concepts, these are some
>> adjustments that i have never faced and i dont know how should i
>> change my new blalnce sheet and what is going in debit side and what
>> is going in credit side?
>> I really appreciate it,
>>
>> thanks,
>>
>>
>> Accounting adjustment?
>>
>> <<Debit Balances>>
>> Account balances on February 28(the end of its fiscal year)
>> cash ................................. 88,860
>> A/R .................................
>> Merchandise inventory ......903,130
>> store equipment ................70,970
>> supplies inventory .............17,480
>> prepaid insurance .............12,430
>> selling expense..................10,88...
>> sales salaries.....................4...
>> miscellaneous general expense ......18,930
>> sales discounts..................3,3...
>> interest expense................ 7,100
>> social security tax expense.......3,400
>> total............................
>> <<Credit balances>>
>> accumulated depreciation on store equipment 11,420
>> notes payable..... 88,500
>> A/P ......................88,970
>> common stock....100,000
>> Retained earnings ...33,500
>> sales ..............988,700
>>
>> Data for adjustment:
>>
>> 1)cost of merchandise sold 604,783
>> 2)store equipment had a useful life of seven years(all equipment was
>> less than 7years old)
>> 3)supplies inventory February 28, 3877.purchases of suppliers during
>> the year were debited to the supplies Inventory account.)
>> 4)The note payable was at an interest rate of 9 percent, payable
>> monthly. It had been outstanding thought out the year.
>> 5)the statement sent by the bank adjusted for checks outstanding shows
>> a balance of 88110. The difference represented bank service changes.
>> Thanks,
>>
>

Beverly

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