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Hakik Enterprises offers rug cleaning services to business clients. Below is the

ID: 2374584 • Letter: H

Question

  Hakik Enterprises offers rug cleaning services to business clients. Below is the trial balance for Hakik Enterprises, which was prepared on the end of period spreadsheet (work sheet) for the year ended July 31, 2010.

Hakik Enterprises
End of Period Spreadsheet (Work Sheet)
For the Year Ended July 31, 2010

Trial Balance

Adjustments

Adjusted Trial Balance

Debit

Credit

Debit

Credit

Debit

Credit

Cash

36

Prepaid Insurance

12

Fees Receivable

56

Supplies

12

Equipment

60

Accum. Depreciation

12

Unearned Revenue

20

Accounts Payable

32

Wages Payable

Ramon Hakik, Capital

84

Ramon Hakik, Drawings

4

Service Revenue

80

Advertising Expense

28

Wage Expense

20

Insurance Expense

Supplies Expense

Depreciation Expense

Totals

228

228


REQUIRED: Enter the adjustment data in the work sheet for the transactions shown below and place the balances in the Adjusted Trial Balance columns.

a) The equipment is estimated to last for 5 years with no salvage value. The asset will be depreciated evenly over its useful life. Record one month's depreciation.
b) Accrued Wages $2.
c) Unused supplies on hand $8.
d) Of the unearned revenue, 75% has been earned.
e) Unexpired insurance remaining at the end of the month, $9.

Hakik Enterprises
End of Period Spreadsheet (Work Sheet)
For the Year Ended July 31, 2010

Trial Balance

Adjustments

Adjusted Trial Balance

Debit

Credit

Debit

Credit

Debit

Credit

Cash

36

Prepaid Insurance

12

Fees Receivable

56

Supplies

12

Equipment

60

Accum. Depreciation

12

Unearned Revenue

20

Accounts Payable

32

Wages Payable

Ramon Hakik, Capital

84

Ramon Hakik, Drawings

4

Service Revenue

80

Advertising Expense

28

Wage Expense

20

Insurance Expense

Supplies Expense

Depreciation Expense

Totals

228

228

Explanation / Answer

For the Year Ended July 31, 2010 Trial Balance Adjustments Adjusted Trial Balance Debit Credit Debit Credit Debit Credit Cash 36 Prepaid Insurance 12 9 9 Fees Receivable 56 Supplies 12 8 8 Equipment 60 1 1 Accum. Depreciation 12 Unearned Revenue 20 15 15 Accounts Payable 32 Wages Payable 2 2 Ramon Hakik, Capital 84 Ramon Hakik, Drawings 4 Service Revenue 80 Advertising Expense 28 Wage Expense 20 Insurance Expense Supplies Expense Depreciation Expense Totals 228 228