Unadjusted trial balance Adjustments Adjusted trial balance Income Statement Balance Sheet

Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit

Cash at bank 9,000 9,000 9,000

Trade debtors 7,500 7,500 7,500
GST outlays 2,000 (6) 75 2 125 2,125
(7) 50
Prepaid insurance 6,250 (2) 1,250 5,000 5,000
Budget cars 125,000 125,000 125,000
Accumulated depreciation-Cars 50,000 (1) 15,000 65,000 65,000
Office equipment 10 ,425 10,425 10,425
Accumulated depreciation- Office equipment 1,250 (1) 425 1,675 1,675
Accounts payable 7,925 7,925 7,925
Loan payable 47,500 47,500 47,500
Unearned rental revenue 2,500 (3) 1,500 1,000 1,000
GST collections 4,250 4,250 4,250
Jack’s, Capital 52,750 52,750 52,750
Jack’s, Drawings 12,750 12,750 12,750
Rental revenue 60,000 (3) 1,500 61,500 61,500
Salaries expense 26,500 (4) 6,500 33,000 33,000
Rent expense 5,000 5,000 5,000
Repairs & Maintenance expense 6,250 (6) 750 7,000 7,000
Supplies expense 12,000 12,000 12,000
Telephone expense 3,500 (7) 500 4,000 4,000
$226,175 $226,175
Depreciation expense-Office equipment (1) 425 425 425
Depreciation expense-Cars (1) 15,000 15,000 15,000
Telephone expense payable (7) 550 550 550
Repairs & Maintenance expense payable (6) 825 825 825
Interest payable (5) 1,750 1,750 1,750
Interest expense (5) 1,750 1,750 1,750
Insurance expense (2) 1,250 1,250 1,250
Salaries payable (4) 6,500 6,500 6,500
$27, 800 $27, 800 $251,225 $251,225 79,425 61,500 171,800 189,725
Net loss (17,925) (17,925)
$61,500 $61,500 $171,800 $171,800
Adjusting journal entries:

1. Depreciation expense-Cars 15,000

Accumulated depreciation-Cars 15,000

Depreciation expense-Office equipment 425

Accumulated depreciation-Office equipment 425

2. Insurance expense 1,250

Prepaid insurance 1,250

3. Unearned rental revenue 1,500

Rental revenue 1,500

4. Salary expense 6,500

Salaries payable 6,500

5. Interest expense 1,750

Interest payable 1,750

6. Repairs & Maintenance expense 750

GST outlay 75
Repairs & Maintenance expense payable 825

7. Telephone expense 500

GST outlay 50
Telephone expense payable 550