At the end of the first three months of operation, Evergreen Repair, Inc.'s trial balance is as follows.

Evergreen has hired an accountant to prepare financial statements to determine how well the company is doing after three months. Upon examining the accounting records, the accountant finds the following items of interest:
a. An inventory of office supplies reveals supplies on hand of $469.
b. The Prepaid Rent account includes the rent for the first three months plus a deposit for April's rent.
c. Depreciation on the equipment for the first three months is $560.
d. The balance of the Unearned Repair Revenue account represents a 12-month service contract paid in advance on February 1.
e. On March 31, accrued wages total $168.
f. Federal income taxes for the three months are estimated to be $1,250.
Required
All adjustments affect one balance sheet account and one income statement account. For each of these situations, show the accounts affected, the amount of the adjustment (using a 1 or 2 to indicate an increase or decrease), and the balance of the account after the adjustment in the following format:

Transcribed Image Text:

Evergreen Repair, Inc. Trial Balance March 31, 2014 Cash Accounts Receivable Office Supplies Prepaid Rent Equipment Accounts Payable Unearned Repair Revenue Common Stock Retained Earnings Dividends Repair Revenue Wages Expense Office Cleanig Expense 7,983 5,872 970 1,500 5,200 2,629 1,146 5,000 6,314 1,800 12,236 3,580 420 27,325 27,325 Balance After Amou Balance After Balance Amount of Adjustment nt of Statement Adjustment Income Sheet Account orAdjustment Account +oAdjustment