Trial Balance & Adjusting Entries

A. Copy Table 1 to the Trial Balance excel sheet and complete the worksheet.
B. Prepare the adjusting entries of AAA Services, below relevant information for the preparation of adjusting entries of AAA at 30 of June 2018.

Office supplies having original cost $8640were unused till the end of the period. Office supplies having original cost of $45,600 are shown on unadjusted trial balance.
Prepaid rent of $72,000 was paid for the months June, July and August.
The equipment costing $160,000 has useful life of 10 years and its estimated salvage value is $28,000. Depreciation is provided using the straight line depreciation method assume that this equipment acquired on 1 st of July 2017.
The interest rate on $40,000 note payable is 9%. Accrue the interest for one month.
$3,000 worth of service has been provided to the customer who paid advance amount of $4,000.

C. Prepare an income statement on the Income statement excel sheet.
D. Prepare a statement of changes in equity on the Changes in equity excel sheet
E. Prepare a balance sheet on the Balance sheet excel sheet.
F. What are the advantages and disadvantages using Excel spreadsheets for preparing financial reports? Give academic references to justify your answers Type your answers on excel sheet Part F in NOT more than 500 words.

AAA Services
Worksheet
for the year end 30 Jun 2018
	Trial Balance		Adjusting Entries		Adjusted Trial Balance		Income Statement		Balance Sheet
Accounts Name	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	40860				40860				40860
Accounts Receivable	11800				11800				11800
Office Supplies	45600			36960	8640				8640
Prepaid Rent	72000			24000	48000				48000
Equipment	160000				160000				160000
Accum. Depreciation - Equipment				13200		13200				13200
Accounts Payable		10400				10400				10400
Notes Payable		40000				40000				40000
Utilities Payable		7928				7928				7928
Interest Payable				300		300				300
Unearned Revenue		8000	3000			5000				5000
Common Stock		200000				200000				200000
Service Revenue		165200		3000		168200		168200
Wages Expense	76400				76400		76400
Miscellaneous Expense	6940				6940		6940
Electricity Expense	4940				4940		4940
Telephone Expense	2988				2988		2988
Supplies Expense			36960		36960		36960
Rent Expense			24000		24000		24000
Depreciation Expense			13200		13200		13200
Interest Expense			300		300		300
Dividend	10000				10000				10000

Total	431528	431528	77460	77460	445028	445028	165728	168200	279300	276828

Profit for the month							2472			2472
			77460	77460	445028	445028	168200	168200	279300	279300


AAA Services
Journal Entries

Date	Particulars	Debit	Credit

30-06-2018	Supplies Expense	36960
	Office Supplies		36960

30-06-2018	Rent Expense	24000
	Prepaid Rent		24000

30-06-2018	Depreciation Expense	13200
	Accumulated Depreciation - Equipment		13200

30-06-2018	Interest Expense	300
	Interest Payable		300

30-06-2018	Unearned Revenue	3000
	Service Revenue		3000


AAA Services
Income Statement
for the year ended June 30,2018
Particulars	Amount

Service Revenue	1,68,200

TOTAL REVENUE	1,68,200

Wages Expense	-76,400
Miscellaneous Expense	-6,940
Electricity Expense	-4,940
Telephone Expense	-2,988
Supplies Expense	-36,960
Rent Expense	-24,000
Depreciation Expense	-13,200
TOTAL OPERATING EXPENSES	-1,65,428

NET OPERATING PROFIT	2,772
Interest Expense	-300

NET PROFIT FOR THE PERIOD	2,472

AAA Service
Statement of Change in Equity
for the period ended June 30,2018
Particulars	Common Stock	Retained Earnings	TOTAL

Balance as on 1 July 2017	2,00,000	0	2,00,000
Add: Net Profit for the period		2,472	2,472
Less: Dividends		-10,000	-10,000

Balance as on 30 June 2018	2,00,000	-7,528	1,92,472

AAA Services
Balance Sheet
as on June 30,2018
Particulars	Amount

Current Assets:
Cash	40,860
Accounts Receivable	11,800
Office Supplies	8,640
Prepaid Rent	48,000
TOTAL CURRENT ASSETS	1,09,300

Non-Current Assets:
Equipment	1,60,000
Accum. Depreciation - Equipment	-13,200
TOTAL NON-CURRENT ASSETS	1,46,800

TOTAL ASSETS	2,56,100

Current Liabilities:
Accounts Payable	10,400
Utilities Payable	7,928
Unearned Revenue	5,000
Interest Payable	300
TOTAL CURRENT LIABILITIES	23,628

Non-Current Liabilities:
Notes Payable	40,000
TOTAL NON-CURRENT LIABILITIES	40,000

TOTAL LIABILITIES	63,628

Equity:
Capital	2,00,000
Retained Earnings	-7,528
TOTAL EQUITY	1,92,472

TOTAL LIABILITIES & EQUITY	2,56,100

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