The Adjusted Trial Balance Columns Of The Worksheet For Alba

The Adjusted Trial Balance Columns Of The Worksheet For Albanese Compa

The adjusted trial balance columns of the worksheet for Albanese Company are provided as follows. Complete the worksheet for the month ended April 30, 2014, using the given adjusted trial balance data. No additional information is provided beyond the given account balances. The worksheet should include the preparation of the income statement and balance sheet sections based on the adjusted trial balance figures.

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The task involves completing a worksheet for Albanese Company based on the provided adjusted trial balance. The worksheet serves as a comprehensive tool to compile the company's financial statements, and its completion requires careful segregation of accounts into income statement and balance sheet sections, followed by calculating the necessary totals and balances. This process ensures the accuracy and completeness of the financial reporting for the period ending April 30, 2014.

First, the worksheet begins with listing all account titles along with their respective debit or credit balances sourced from the adjusted trial balance. Accounts that belong to the income statement, such as revenues and expenses, need to be segregated from those on the balance sheet, such as assets, liabilities, and equity accounts.

Given the provided figures, we classify the accounts as follows:

  • Assets: Cash, Accounts Receivable, Prepaid Rent, Equipment, Accumulated Depreciation on Equipment
  • Liabilities: Notes Payable, Accounts Payable, Interest Payable
  • Equity: Common Stock, Retained Earnings
  • Expenses: Salaries & Wages Expense, Rent Expense, Depreciation Expense, Interest Expense
  • Revenues: Service Revenue
  • Dividends: Dividends (to be closed to retained earnings)

Next, the worksheet columns are filled such that the total debits equal total credits, maintaining the accounting equation's balance. The income statement section includes revenue and expense accounts; net income is calculated as total revenues minus total expenses. This net income is then closed into retained earnings in the balance sheet section.

In constructing the balance sheet, the asset section includes the balance sheet accounts, adjusting for accumulated depreciation to determine net equipment value. Liabilities are listed are totaling the amounts payable, and stockholders' equity reflects common stock and retained earnings, adjusted for net income and dividends. The worksheet ensures all figures align, verifying the balance sheet balances and the income statement accurately reflects the financial performance for the period.

Given the figures:

  • Total debits and credits from the adjusted trial balance are both 54,819, ensuring a balanced worksheet.
  • Accrued depreciation expense is accounted for, reducing equipment book value accordingly.
  • Dividends will be closed out to retained earnings, affecting the equity section.

Completing the worksheet involves transferring the account balances into the appropriate columns, computing totals, and preparing the income statement (revenues minus expenses) and balance sheet (assets, liabilities, equity). The resulting completed worksheet will be balanced, with the total debits equaling total credits, confirming the accuracy of the company's financial position as of April 30, 2014.

References

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