Dexter Co.

Worksheet
For the month ended September 30, 2020
Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Account Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash 161,800 161,800 161,800
Prepaid Rent 36,000 3,000 33,000 33,000
Accounts Receivable 95,000 95,000 95,000
Allowance for bad debts 15,500 9,500 25,000 25,000
Merchandise Inventory 85,000 85,000 85,000
Stationery 5,500 500 5,000 5,000
Machinery 150,000 150,000 150,000
Accumulated depreciation 30,000 15,000 45,000 45,000
Salaries & Wages payable 15,800 1,500 17,300 17,300
Accounts Payable 55,000 55,000 55,000
Share Capital 175,000 175,000 175,000
Retained earnings 75,000 75,000 75,000
Sales 280,000 280,000 280,000
Cost of goods sold 95,000 95,000 95,000
Rent Expense 3,000 3,000 6,000 6,000
Depreciation Expense 15,000 15,000 15,000
Bad Debts Expense 9,500 9,500 9,500
Salaries and Wages Expense 1,500 1,500 1,500
Advertising Expense 15,000 15,000 15,000
Stationery Expense 500 500 500
Net Income 137,500 137,500
646,300 646,300 29,500 29,500 672,300 672,300 280,000 280,000 529,800 529,800
Adjustments:
a. Write off depreciation on the machinery at 10% straight line. Instructions: Prepare the accountant's worksheet and adjusting entries.
b. Rent expired, $3,000. b. Open the t-accounts and record thebeginning balance.
c. Bad debts amounted to 10% of receivables. c. Prepare the financial statements.
d, Salaries and wages accrued at the end of the month is $1,500. d. Close off the temporary accounts.
e. Stationery used during the month is $500. e. Prepare the closing entries.
f. Prepare the post-closing trial balance.
a) Depreciation - MV 15,000
Accumulated Depreciation - MV 15,000
b) Rent Exp 3,000
Prepaid Rent 3,000
c) Bad Debts 9,500
Allowance for bad debts 9,500
d) Salaries & Wages Exp 1,500
Salaries & Wages Payable 1,500
e) Stationery Expense 500
Stationery 500

Total 29,500 29,500

 DR. Cash CR. DR.
1-Sep 161,800 1-Sep

b/d balance 161,800 b/d balance

b/d balance

DR. Prepaid Rent CR. DR.

1-Sep 36,000 30-Sep 3,000 1-Sep

b/d balance 36,000 b/d balance 3,000 b/d balance

b/d balance 33,000

DR. Accounts Receivable CR. DR.

1-Sep 95,000

b/d balance 95,000

DR. Allowance for Bad Debts CR. DR.

1-Sep 15,500
30-Sep 9,500
b/d balance 25,000

DR. Merchandise Inventory CR. DR.

1-Sep 85,000

b/d balance 85,000

DR. Advertising Expense CR. DR.

1-Sep 15,000

b/d balance 15,000

 Stationery CR. DR. Share Capital
5,500 30-Sep 500 1-Sep

5,500 b/d balance 500 b/d balance

5,000

Machinery CR. DR. Retained Earnings

150,000 1-Sep

150,000 b/d balance

Accumulated Depreciation CR. DR. Sales

1-Sep 30,000 1-Sep
30-Sep 15,000
b/d balance 45,000 b/d balance

Share Capital CR. DR. Cost of goods sold

1-Sep 175,000 1-Sep 95,000

b/d balance 175,000 b/d balance 95,000

Salaries & Wages payable CR. DR. Rent Expense

1-Sep 15,800 1-Sep 3,000
30-Sep 1,500 30-Sep 3,000
b/d balance 17,300 b/d balance 6,000

Accounts Payable CR. DR. Stationery Expense

1-Sep 55,000 30-Sep 500

b/d balance 55,000 b/d balance 500

CR. DR. Bad Debts Expense CR.
175,000 30-Sep 9,500

175,000 b/d balanc 9,500

CR. DR. Salaries and Wages Expense CR.

75,000 30-Sep 1,500

75,000 b/d balanc 1,500

CR. DR. Depreciation Expense CR.

280,000 30-Sep 15,000

280,000 b/d balanc 15,000

CR.

CR.

CR.
 Star Inc.
Balance Sheet
For the Month ended September 30, 2020
Assets
Current assets:
Cash and cash equivalents $ 161,800
Accounts Receivables 95,000
Allowance for Bad debts (25,000)
Prepaid Rent 33,000
Stationery 5,000
Merchandise Inventory 85,000
Total Current Assets 354,800

Non-current assets:
Machinery 150,000
Accumulated Depreciation (45,000)
Total non-current assets 105,000
Total Assets $ 459,800

Liabilities and Equity

Current liabilities:
Salaries and Wages payable $ 17,300
Accounts Payable 55,000
Total liabilities 72,300

Equity:
Share Capital 175,000
Retained earnings 212,500
Total Equity 387,500
Total Liabilities and Equity $ 459,800

Star Inc.
Income Statement
For the Month ended May 31, 2020

Sales 280,000
Cost of Goods Sold (95,000)
Gross Margin 185,000

Operating Expense
Depreciation Expense 15,000
Bad Debts 9,500
salaries and wages 1,500
Advertising Expense 15,000
Stationery Expense 500
Rent Expense 6,000
Total Expenses 47,500

Net Income $ 137,500

 Star Inc.
Statement of Retained Earnings
For the month ended 31 May2020

Retained Earnings $ 75,000

Net Income $ 137,500
Retained Earnings $ 212,500
 Date Account Name Debit Credit
30-Sep Revenue 280,000
Income Summary 280,000
To Close Income Account to Income Summary

Date Account Name Debit Credit

30-Sep Income Summary 142,500
Cost of goods sold 95,000
Rent Expense 6,000
Depreciation Expense 15,000
Bad Debts Expense 9,500
Salaries and Wages Expense 1,500
Advertising Expense 15,000
Stationery Expense 500
To Close Expense Account to Income Summary

Date Account Name Debit Credit

30-Sep Retained Earnings 75,000
Dividends 75,000
To Close Income Account to Income Summary
 Date Account Name Debit Credit
30-Sep Revenue 280,000
Income Summary 280,000
To Close Income Account to Income Summary

Date Account Name Debit Credit

30-Sep Income Summary 142,500
Cost of goods sold 95,000
Rent Expense 6,000
Depreciation Expense 15,000
Bad Debts Expense 9,500
Salaries and Wages Expense 1,500
Advertising Expense 15,000
Stationery Expense 500
To Close Expense Account to Income Summary

Date Account Name Debit Credit

30-Sep Retained Earnings 75,000
Dividends 75,000
To Close Income Account to Income Summary
 Star Inc.
Post-Closing Trial Balance
For the Month Ended May 31, 2020

Account Name Debit Credit

Cash 161,800
Prepaid rent 33,000
Accounts Receivable 95,000
Allowance for bad debts 25,000
Stationery 5,000
Merchandise Inventory 85,000
Machinery 150,000
Accumulated depreciation 45,000
Salaries & Wages payable 17,300
Accounts Payable 55,000
Share Capital 175,000
Retained earnings 75,000
Net Income 137,500

Total $ 529,800 $ 529,800