The unadjusted T-accounts of Investors Brokerage at December 31, 2007 , and the related year-end adjustment data follow.

Adjustment data at December 31, 2007.

a. Depreciation for the year, \(\$ 5,000\).

b. Supplies on hand, \(\$ 2,000\).

c. Accrued service revenue, \(\$ 4,000\).

d. Unearned service revenue earned during the year, \(\$ 2,000\).

e. Accrued salary expense, \(\$ 1,000\).

Requirements 

1. Enter the account data in the trial balance columns of a work sheet, and complete the work sheet. Key each adjusting entry by the letter corresponding to the data given. List all the accounts, including those with zero balances. Leave a blank line under Service Revenue.

2. Prepare the income statement, the statement of owner's equity, and the classified balance sheet in account form.

3. Did Investors Brokerage have a good or a bad year during 2007? Give the reason for your answer. 

Transcribed Image Text:

Cash Bal. 29,000 Accumulated Depreciation Bal. 12.000 Note Payable, Long-Term Bal. 40,000 Service Revenue Bal. 95,000 Depreciation Expense Accounts Receivable Bal. 44,000 Accounts Payable Bal. 16,000 Supplies Computers Bal. 6,000 Salary Payable Tom Fritz, Capital Bal. 22,000 Unearned Service Revenue Bal. 2,000 Tom Fritz, Withdrawals Bal. 41,000 Bal. 54,000 Salary Expense Supplies Expense Bal. 36,000 Interest Expense Bal. 5,000 Advertising Expense Bal. 10,000