Financial worksheet for John Dry Cleaning Services detailing account balances and adjustments for the year ended 30 April 2017.

Let’s go step by step to understand what this worksheet is showing and how to check if it’s correct.

This is an accounting worksheet for “John Dry Cleaning Services” for the year ended 30 April 2017. It shows how accounts are adjusted and then split into Income Statement (for profit/loss) and Balance Sheet (for assets, liabilities, capital).

We need to verify that all columns add up correctly — especially the totals at the bottom.

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Step 1: Check Trial Balance Totals

Trial Balance Dr. = 8,460 + 1,200 + 500 + 2,000 + 2,100 + 4,000 + 2,005 + 1,000 + 150
= Let’s add:

- Cash: 8,460
- Unexpired rent: 1,200 → total so far: 9,660
- Prepaid insurance: 500 → 10,160
- Supplies in hand: 2,000 → 12,160
- Furniture: 2,100 → 14,260
- Equipment: 4,000 → 18,260
- Salaries expenses: 2,005 → 20,265
- Telephone charges: 1,000 → 21,265
- Electricity charges: 150 → 21,415

Trial Balance Cr. = 5,000 (Accounts payable) + 150 (Accum dep Fur.) + 1,000 (Accum dep Eq.) + 10,015 (Capital) + 5,250 (Revenue)

Add:

- Accounts payable: 5,000
- Accum dep Fur.: 150 → 5,150
- Accum dep Eq.: 1,000 → 6,150
- Capital: 10,015 → 16,165
- Revenue: 5,250 → 21,415

✔ Trial Balance balances: 21,415 Dr. = 21,415 Cr.

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Step 2: Check Adjustments Column

Adjustments have debits and credits. They must balance too.

Dr. adjustments:
- ii. 195 (Salaries expense)
- iii. 750 (Services receivable)
- iv. 200 (Insurance expense)
- v. 500 (Supplies expense)
→ Total Dr. adjustments = 195 + 750 + 200 + 500 = 1,645? Wait — let’s look again.

Wait — looking at the table:

Under Adjustment column:

Dr. side has:
- ii. 195 (Salaries expenses)
- iii. 750 (Services receivable)
- iv. 200 (Insurance expenses)
- v. 500 (Supplies expenses)
→ That’s 195 + 750 + 200 + 500 = 1,645

But wait — there’s also “i. 200” under Cr. for Unexpired rent → that’s a credit adjustment.

And “ii. 195” under Cr. for Outstanding salary → that’s a credit.

So let’s list ALL adjustments:

From the table:

Debit Adjustments:
- Salaries expenses: ii. 195
- Services receivable: iii. 750
- Insurance expenses: iv. 200
- Supplies expenses: v. 500
→ Total Dr. adjustments = 195 + 750 + 200 + 500 = 1,645

Credit Adjustments:
- Unexpired rent: i. 200
- Prepaid insurance: iv. 200 → wait, no — look carefully.

Actually, looking at the table layout:

In the “Adjustment” column:

Row: Unexpired rent → Cr. i. 200
Row: Prepaid insurance → Cr. iv. 200
Row: Supplies in hand → Cr. v. 500
Row: Revenue from services → Cr. iii. 750
Row: Salaries expenses → Dr. ii. 195
Row: Rent expenses → Dr. i. 200
Row: Outstanding salary → Cr. ii. 195
Row: Services receivable → Dr. iii. 750
Row: Insurance expenses → Dr. iv. 200
Row: Supplies expenses → Dr. v. 500

Wait — this is messy. Let me reorganize based on standard accounting logic.

Actually, the adjustments are paired:

Each adjustment entry should have equal debit and credit.

Looking at the numbers given in the “Adjustment” column totals at the bottom:

It says:
Adjustment Dr. total = 1,845
Adjustment Cr. total = 1,845

Let’s verify that.

List of adjustment entries implied:

1. i. Rent expired:
- Debit Rent expenses 200
- Credit Unexpired rent 200
→ So Dr. 200, Cr. 200

2. ii. Accrued salaries:
- Debit Salaries expenses 195
- Credit Outstanding salary 195
→ Dr. 195, Cr. 195

3. iii. Accrued revenue:
- Debit Services receivable 750
- Credit Revenue from services 750
→ Dr. 750, Cr. 750

4. iv. Insurance used:
- Debit Insurance expenses 200
- Credit Prepaid insurance 200
→ Dr. 200, Cr. 200

5. v. Supplies used:
- Debit Supplies expenses 500
- Credit Supplies in hand 500
→ Dr. 500, Cr. 500

Now sum all Dr. adjustments:
200 (rent) + 195 (salaries) + 750 (receivable) + 200 (insurance) + 500 (supplies) =
200+195=395; +750=1,145; +200=1,345; +500= 1,845

Sum all Cr. adjustments:
200 (unexpired rent) + 195 (outstanding salary) + 750 (revenue) + 200 (prepaid insurance) + 500 (supplies in hand) = same: 1,845

✔ Adjustments balance: 1,845 Dr. = 1,845 Cr.

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Step 3: Check Adjusting Trial Balance

This is Trial Balance ± Adjustments.

For each account, we take Trial Balance amount and add/subtract adjustments.

Let’s pick a few to verify:

Cash: TB Dr. 8,460 → no adjustment → Adj TB Dr. 8,460 ✔

Unexpired rent: TB Dr. 1,200 → Cr. adj 200 → becomes 1,000 Dr. ✔

Prepaid insurance: TB Dr. 500 → Cr. adj 200 → becomes 300 Dr. ✔

Supplies in hand: TB Dr. 2,000 → Cr. adj 500 → becomes 1,500 Dr. ✔

Furniture: 2,100 → no adj → 2,100 ✔

Equipment: 4,000 → no adj → 4,000 ✔

Accounts payable: 5,000 Cr. → no adj → 5,000 Cr. ✔

Accumulated depreciation (Fur.): 150 Cr. → no adj → 150 Cr. ✔

Accumulated depreciation (Eq.): 1,000 Cr. → no adj → 1,000 Cr. ✔

Capital: 10,015 Cr. → no adj → 10,015 Cr. ✔

Revenue from services: TB Cr. 5,250 + Cr. adj 750 = 6,000 Cr. ✔

Salaries expenses: TB Dr. 2,005 + Dr. adj 195 = 2,200 Dr. ✔

Telephone charges: 1,000 → no adj → 1,000 ✔

Electricity charges: 150 → no adj → 150 ✔

Rent expenses: TB 0 + Dr. adj 200 = 200 Dr. ✔

Outstanding salary: TB 0 + Cr. adj 195 = 195 Cr. ✔

Services receivable: TB 0 + Dr. adj 750 = 750 Dr. ✔

Insurance expenses: TB 0 + Dr. adj 200 = 200 Dr. ✔

Supplies expenses: TB 0 + Dr. adj 500 = 500 Dr. ✔

Now check totals for Adjusting Trial Balance:

Dr. total:
Cash 8,460
Unexpired rent 1,000
Prepaid insurance 300
Supplies in hand 1,500
Furniture 2,100
Equipment 4,000
Salaries exp 2,200
Telephone 1,000
Electricity 150
Rent exp 200
Services rec 750
Insurance exp 200
Supplies exp 500
→ Add them:

Start with big ones:

8,460 + 1,000 = 9,460
+300 = 9,760
+1,500 = 11,260
+2,100 = 13,360
+4,000 = 17,360
+2,200 = 19,560
+1,000 = 20,560
+150 = 20,710
+200 = 20,910
+750 = 21,660
+200 = 21,860
+500 = 22,360

Cr. total:
Accounts payable 5,000
Accum dep Fur. 150
Accum dep Eq. 1,000
Capital 10,015
Revenue 6,000
Outstanding salary 195
→ Add:

5,000 + 150 = 5,150
+1,000 = 6,150
+10,015 = 16,165
+6,000 = 22,165
+195 = 22,360

✔ Adjusting Trial Balance balances: 22,360 Dr. = 22,360 Cr.

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Step 4: Split into Income Statement and Balance Sheet

Income Statement includes revenues and expenses.

Balance Sheet includes assets, liabilities, capital.

Income Statement:

Revenues:
Revenue from services: 6,000 Cr.

Expenses (all Dr.):
Salaries: 2,200
Telephone: 1,000
Electricity: 150
Rent: 200
Insurance: 200
Supplies: 500
Total expenses = 2,200 + 1,000 = 3,200; +150=3,350; +200=3,550; +200=3,750; +500= 4,250

Net income = Revenue - Expenses = 6,000 - 4,250 = 1,750

In the worksheet, Net income is shown as 1,750 in both Income Statement Cr. and Balance Sheet Cr. — which makes sense because net income increases capital.

Check Income Statement totals:

Dr. side (expenses): 4,250
Cr. side (revenue + net income): 6,000 + ? Wait — no.

Standard way: In Income Statement column, you put all revenues on Cr., all expenses on Dr. Then the difference is net income or loss.

Here, they’ve put:

Income Statement Dr. = 4,250 (expenses)
Income Statement Cr. = 6,000 (revenue)
Then Net income = 1,750 — which is added to Cr. side to balance? Actually, in worksheets, net income is placed on the side that makes the column balance.

Since Cr. (6,000) > Dr. (4,250), net income is 1,750, and it’s written on the Dr. side of Income Statement to make it balance? Wait — let’s see the table.

In the table:

Income Statement column:

Dr. total = 4,250
Cr. total = 6,000
Then below, Net income = 1,750 — and it’s listed under Dr. for Income Statement? No — looking:

In the row "Net income", under Income Statement, it shows Dr. 1,750 and Cr. blank? But then Total for Income Statement is Dr. 6,000 and Cr. 6,000.

Ah — I see. The Net income of 1,750 is added to the Dr. side of Income Statement to make total Dr. = 4,250 + 1,750 = 6,000, matching Cr. 6,000.

That’s correct — because net income is the balancing figure.

Similarly, for Balance Sheet:

Assets (Dr.):
Cash 8,460
Unexpired rent 1,000
Prepaid insurance 300
Supplies in hand 1,500
Furniture 2,100
Equipment 4,000
Services receivable 750
→ Sum: 8,460 + 1,000 = 9,460; +300=9,760; +1,500=11,260; +2,100=13,360; +4,000=17,360; +750= 18,110

Liabilities & Equity (Cr.):
Accounts payable 5,000
Accum dep Fur. 150
Accum dep Eq. 1,000
Capital 10,015
Outstanding salary 195
Net income 1,750
→ Sum: 5,000 + 150 = 5,150; +1,000=6,150; +10,015=16,165; +195=16,360; +1,750= 18,110

✔ Balance Sheet balances: 18,110 Dr. = 18,110 Cr.

Also, note that Net income appears in Balance Sheet Cr. as part of equity.

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Final Verification

All sections balance:

- Trial Balance: 21,415 = 21,415
- Adjustments: 1,845 = 1,845
- Adjusting Trial Balance: 22,360 = 22,360
- Income Statement: after adding net income, 6,000 = 6,000
- Balance Sheet: 18,110 = 18,110

The worksheet is correctly prepared.

Final Answer: The worksheet is accurate and all columns balance correctly.