Trial balance Adjustments

Account Debit Credit Date Debit2 Date2 Credit2

Cash 9200
Accounts receivable 1500 A 2000
Prepaid rent 2400 B 800
Supplies 2200 C 1820
Furniture 81000
Accumulated depreciation 3900 D 1350
Accounts payable 3500
Salary payable E 3120
Common sotck 15000
Retained earnings 71020
Dividends 3600
Service revenu 10000 A 2000
Salary expense 3000 E 3120
Rent expense B 800
Utilites expense 520
Depreciation expense D 1350
Supplies expense C 1820
Total 103420 103420 9090 9090

Tot furnitureDepreciationRest value

Depreciation furniture 81000 16200 64800 1350
3120
requirement 2
Balance of Kings, Inc.
Income statement Balance of Kings, Inc.
Month ended at Aug. 31, 2016 Statement of changes in Equity
Income statement of BalanceColumn2 Month ended at Aug. 31, 2016
Revenues
Service revenues 12000 Assets ($) Equities ($)
Retained
Current
Expenses earnings
Share
Cash 9200
Salary expense 6120 capital
Rent expense 800 Supplies 380
Prepaid 1600
Utilites expense 520 rent
Accounts 3500 Liabilities
Depreciation expense 1350 receivable ($)
Non- Accounts
Supplies expense 1820 current payable
Salary
Furniture 75750
Net income 1390 payable
 Total
Total assets 90430 liabilities &
equity

Balance of Kings, Inc.

Statement of changes in Equity
Month ended at Aug. 31, 2016
Month ended at Aug. 31, 20Column2
Retained earnings last year 71020
Net income 1390
Dividends 3600
Total retained earnings 68810
 Adjusted trial balance
Date3 Debit3 Date4 Credit3 Explanation furniture
9200 0 Balance sheet Furniture, cost
3500 0 "- Accumulated depreciation"
2400 800 =
2200 1820 Furniture, net
81000 0
0 5250 You could also write furniture net
0 3500
0 3120
0 15000
0 71020
3600 0
0 12000
6120 0
800 0
520 0
1350 0
1820 0
112510 112510

Equities ($)

68810

15000
Share capital is naam die hij verkiest, niet common stock

3500

3120
90430
 year 1 year 2
Furniture, cost 40000 40000
"- Accumulated depreciation" 1000 20000

Furniture, net 30000 20000

furniture net
 Trial balance Adjustments Adjusted trial balance
Account Debit Credit Date Debit2 Date2 Credit2 Date3 Debit3
Cash 8000 8000
Accounts receivable 4200 4200
Supplies 800 A 400 400
Prepaid rent 1200 B 100 1100
Land 43000 43000
Accounts payable 12000
Salary payable C 1000
Unearned service revenu 700 D 500
Note payable, due in three years 25400
Common stock 5000
Retained earnings 9300
Service revenue 9100 D 500
Salary expense 3400 C 1000 4400
Rent expense B 100 100
Adveritsing expense 900 900
Depreciation expense
Supplies expense A 400 400
Total 61500 61500 2000 2000 62500
Debit Credit Verschil
Answer 1 61500 59500 2000 Pas 23400 van Notes payable aan naar 25400
Answer 2 see trial balance above
Answer 3 Current ratio = current assets/current liabilities
1.05 Current assets 13700 Waarom is unearned service reven
Current liabilities 13200
Unearned revenue is money received
a service or product that has yet to be
thought of as a "prepayment" for goo
De ratio is groter dan 1 wat wilt zeggen dat de current company is expected to supply to the
liabilities betaald kunnen worden met de current assets. Maar result of this prepayment, the se
de WC en WCR geeft ons een beter zicht. Enkele opmerkingen the revenue earned until the goo
over de current ratio
1. 1.03 = laag > weak current position
2. 1.03 of current assets for each $ 1 of current liabilities
3. Company will have trouble paying current liabilities.

WC = current assets - current debt

500
WCR = accounts receivable + cash - accounts payable
200

We zien dat WC > WCR dus goede liquidity position.

 Adjusted trial balance
Date4 Credit3

12000
1000
200
25400
5000
9300
9600

62500

current ratio : ability of the firm to pay back his short time debt; it is a me
is unearned service revenu een liability? Hij vindt cash conversion ratio interessanter: dat is eigenlijk working capit
Hij gaat geen ratio's vragen op examen!!!
revenue is money received by an individual or company for
or product that has yet to be provided or delivered. It can be
of as a "prepayment" for goods or services that a person or
is expected to supply to the purchaser at a later date. As a
ult of this prepayment, the seller has a liability equal to
revenue earned until the good or service is delivered.
 ck his short time debt; it is a measure for liquidity
ter: dat is eigenlijk working capital