Adjustment And Adjusting Entries (25%)

A) Apportioning Of Recorded Cost

1) Shop Supplies

Date Account Title Debit Credit

31/12 Shop Supplies Expense Xxx
Shop Supplies (Assets) Xxx

2) Prepaid Insurance = Paid In Advance

Date Account Title Debit Credit
31/12 Insurance Expense Xxx
Prepaid Insurance Xxx

3)Other Prepaid Expense ) ‫)غالبا تكون اكتر من سنه‬

Date Account Title Debit Credit

31/12 Rent,Salaries Expense Xxx
Prepaid Rent,Salaries Xxx

4) Depreciation Expense Of Fixed Assets

cost - residual value
Depreciation Expense = estimated useful life

cost - residual value 1

Monthly Depreciation Expense = estimated useful life × 12
Ex/ Furniture, Equipment, Vehicles

Date Account Title Debit Credit

31/12 Depreciation Expense---- Xxx
Accumulated Depreciation------ Xxx

B) Apportioning Of Unearned Revenue

Ex/ Unearned Revenue Or Unearned Commissions

Date Account Title Debit Credit

31/12 Unearned Commissions Xxx
Commissions Revenue Xxx
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C) Recording Of Unrecorded Expense
Ex/ Rent, Salaries , Interest

Date Account Title Debit Credit

31/12 Rent, Interest Expense Xxx
Rent, Interest Payable Xxx

D) Recording Of Unrecorded Revenue

Date Account Title Debit Credit

31/12 Accounts Receivable Xxx
Service Revenue Xxx

Notes
 Investment = depositing ‫اودع او استثمر‬
 Issued a check = paid in cash
 Cash down payment = of which → ‫نقدا منها دفع‬
 Acquired = purchased ‫اشترى‬
 Sent a bill accounts receivable ‫محصلتهاش ولسه الفاتوره ارسلت اللى انا‬
 received a bill accounts payable ‫بدفعها التزام عليا يبقى فاتوره استلمت‬
 passenger fare revenue ‫المسافرين نقل ايرادات‬
 billed = sent a bill "‫ارسلت فاتوره "انا اللى ارسلت‬

unearned revenue  liabilities ‫من ضمن‬

accumulated depreciation  contra assets ‫ طبيعتها‬credit
prepaid insurance or prepaid expense  current assets ‫من ضمن‬

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Financial Statement (25%)
Prepare The Income Statement & Statement Of Owner’s Equity & Balance
Sheet

Xx Company
Income Statement
For The Year Ended 31/12/20—
Revenue

 Commission Revenue Xx
 Service Revenue Xx Xxx

Expensese

 Salaries Expense Xx
 Rent Expense Xx
 General Expense Xx
 Advertising Expense Xx
 Depreciation Expense-Fixed Asset Xx
 Office Supplies Expense Xx
 Interest Expense Xx Xxx

Net Income Or Net Loss Xxxx

Xx Company
Owner’s Equity
For The Year Ended 31/12/20—
 Capital Xx
 Net Income Xx
 (-) Net Loss (Xx)
 (-) Drawing (Xx)

Capital 31/12/20--- Xxxx

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 Xx Company
Balance Sheet
At 31/12/20—

Assets Liabilities
A) Current Assets A)Current Liabilities
Cash Xx Accounts Payable Xx
Accounts Receivable Xx Notes Payable Xx
Notes Receivable Xx Loan Payable Xx
Prepaid Rent Xx Unearned Commission Rev Xx
Prepaid Salaries Xx Unearned Revenue Xx
Office Supplies Xx Total Current Liabilities Xxx
Total Current Asstes Xxxx B) Long Term Liabilities
B) Fixed Assets Mortgage Loan Xxx
Furniture Xx Total Liabilities Xxxx
(-)Acc-Depreciation-Furniture (Xx)
Net Furniture Xx Owner’s Equity
Equipment Xx Capital 31/12 Xxxx
(-)Acc-Depreciation-Equipment (Xx)
Net Equipment Xx
Vehicles Xx
(-)Acc-Depreciation-Vehicles (Xx)
Net Vehicles Xx
Total Fixed Assets Xxxx
Total Assets Xxxxx Total Liabilities &Owner’s Equity Xxxxx
Assets= liabilities & owner’s equity ‫للتاكد من صحه االجابه الزم‬

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 2)Closing Entry
Date Account Title Debit Credit
31/12 1) Revenue ( I/S ‫) من قائمه‬
Commission Revenue XX
Income Summary XX
31/12 2) Expense ( I/S ‫) من قائمه‬
Income Summary Xx
Salaries Expense Xx
Rent Expense Xx
General Expense Xx
Advertising Expense Xx
Depreciation Expense-Fixed Assets Xx
Office Supplies Expense Xx
Interest Expense Xx
Xx
31/12 3) Net Income ( I/S ‫) من قائمه‬
Income Summary Xx
Capital Xx
Or
Net Loss ‫فى حالة الخساره‬
Xx
Capital
Xx
Income Summary
31/12 4)Drawing
Capital Xx
Drawing Xx

‫ لو اعطاك فى المساله‬quarterly ‫ فى‬adjustment

1/1 -------- to ------- 31/3 ‫الربع االول من السنه‬
1/4 ---------- to … 30/6 ‫الربع الثانى من السنه‬
1/7 ______ to ____ 30/9 ‫الربع الثالث من السنه‬
1/10 _____ to _____ 31/12 ‫الربع الرابع من السنه‬

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 ‫مزكره ‪ 8‬ومزكره ‪ 6‬فى ورق الشرح مهمين جدا مع امتحان ‪ 6006‬و‬
‫‪ 6002‬واالجزء االخيره فى التيست بنك مهمه‬

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