Worksheet part2

Summary

The instructor continues completing an accounting worksheet by recording adjusting entries, transferring them to the adjusted trial balance columns, and checking whether the columns balance.

Adjusting entries discussed

• Bad debts (Adjustment 4): Record ₱1,000 as bad debt expense and credit Allowance for Bad Debts (also called Allowance for Doubtful Accounts) for ₱1,000.
• Depreciation (Adjustment 5): Record ₱4,167 as depreciation expense for office equipment and credit accumulated depreciation. The subtitles mention existing accumulated depreciation of ₱10,000, but later show an adjusted balance of ₱14,000. These figures do not agree exactly, so the depreciation balance is unclear.
• Unearned service revenue (Adjustment 6): The worksheet appears to reduce service revenue by ₱20,000 and record the same amount as unearned service revenue. This is consistent with the instructor’s later calculation, which reduces service revenue from ₱60,000 to ₱40,000. The subtitles are unclear about the adjustment’s amount and wording, but the worksheet shows a liability for the unearned portion.

Carrying balances to the adjusted trial balance

The instructor transfers each account’s adjusted balance to the appropriate column, taking its normal balance and any adjustments into account. Examples include:

• Cash remains ₱20,000.
• Accounts receivable is ₱50,000.
• Supplies of ₱10,000, less a ₱9,000 credit adjustment, leaves ₱1,000.
• Office equipment remains ₱30,000.
• Service revenue decreases from ₱60,000 to ₱40,000.
• Salaries expense is ₱20,000.

The instructor emphasizes that an adjusted balance is the amount to report for an account after applying its adjusting entries.

Checking the worksheet

The instructor adds the adjusted trial balance columns and checks that total debits equal total credits. The worksheet initially does not balance, showing a ₱9,000 difference. The instructor reviews the postings, including the supplies adjustment and bad-debts entry, then corrects an apparent posting error and checks the totals again.

Because the subtitles are garbled, the exact correction and final totals are unclear. Once the columns balance, the instructor double-rules the totals to indicate completion.

The lesson closes with a reminder that adjusting amounts come from the adjusting entries and that careful posting and checking are necessary to complete the worksheet.

Speaker

• Ma’am Shie — the instructor and sole identifiable speaker in the subtitles.