E4-1 The trial balance columns of the worksheet for Briscoe Company at June 30, 2008, are as
follows.
BRISCOE COMPANY
Worksheet
For the Month Ended June 30, 2008
Trial Balance
Account Titles Dr. Cr.
Cash $2,320
Accounts Receivable 2,440
Supplies 1,880
Accounts Payable $1,120
Unearned Revenue 240
Common Stock 3,600
Service Revenue 2,400
Salaries Expense 560
Miscellaneous Expense 160
$7,360 $7,360
Other data:
1. A physical count reveals $300 of supplies on hand.
2. $100 of the unearned revenue is still unearned at month-end.
3. Accrued salaries are $280. I came up with 1.1580 supplies 2. 100 unearned revenue and 168 salaries payable is this correct?
How do I balance out the adjustments made by the extra information?
To determine the correct amounts for supplies, unearned revenue, and salaries payable, we need to make adjustments based on the additional data given.
First, let's calculate the adjusted amount for supplies:
1. Add the physical count of supplies on hand ($300) to the supplies amount in the trial balance ($1,880):
$1,880 + $300 = $2,180
Therefore, the adjusted amount for supplies is $2,180.
Next, let's calculate the adjusted amount for unearned revenue:
2. Subtract the portion of unearned revenue that is still unearned at month-end ($100) from the unearned revenue amount in the trial balance ($240):
$240 - $100 = $140
Therefore, the adjusted amount for unearned revenue is $140.
Moving on to salaries payable:
3. Add the accrued salaries amount ($280) to the salaries expense amount in the trial balance ($560):
$560 + $280 = $840
Therefore, the adjusted amount for salaries payable is $840.
To summarize, the correct amounts are:
- Adjusted supplies: $2,180
- Adjusted unearned revenue: $140
- Adjusted salaries payable: $840
Please note that the calculations provided are based on the information given in the question and the assumptions made. Adjustments may vary depending on additional information or specific accounting policies.