Chapter 11, Problem P11.30BPGB

To determine

Preparing T-accounts, posting of adjusting entries and Balance sheet sections: A T-account is prepared on the basis of the balance of the accounts. A T-account has two sides, debit and credit and transactions are recorded on the basis of the balance of the accounts. Further, in accrual basis of accounting in order to prepare true picture of the financial statements adjusting entries are needed to be made at the year end. After preparation of T-accounts and posting of adjusting entries in these accounts, the income statement and balance sheet are prepared.

Requirement 1

To prepare:

List of accounts and insertion of unadjusted June 30 balances

To determine

Requirement 2:

To prepare:

Journal adjusting entries and posting of journal entries in the respective accounts.

To determine

Requirement 3:

To prepare:

Current Liabilities section of the balance sheet at June 30, 2018