Chapter 5
The Accounting Cycle: Adjustments
122
MP Consulting
Worksheet
January 31, 2016
Unadjusted Trial
Balance
Adjustments
Adjusted Trial
Balance
Account Titles
DR
CR
DR
CR
DR
CR
Cash
$3,800
$3,800
Accounts Receivable
3,000
5
$1,000
4,000
Prepaid Insurance
1,200
2
$100
1,100
Equipment
8,300
8,300
Accumulated Depreciation
$0
4
150
$150
Accounts Payable
1,250
1,250
Interest Payable
0
1
25
25
Unearned Revenue
2,000
3
200
1,800
Bank Loan
2,500
2,500
Parish, Capital
10,300
10,300
Parish, Drawings
2,000
2,000
Service Revenue
3,300
3
5
1,200
4,500
Depreciation Expense
0
4
150
150
Insurance Expense
0
2
100
100
Interest Expense
0
1
25
25
Rent Expense
800
800
Telephone Expense
250
250
Total
$19,350 $19,350
$1,475
$1,475 $20,525 $20,525
______________
FIGURE 5.22
Once the worksheet is prepared and the adjusted trial balance is in balance, the journal entries for
the above transactions would be recorded in the general journal and posted to the general ledger.
The journal entries are shown in Figure 5.23. All the postings to general ledger accounts, including
these adjustments, are shown in the next chapter.
