Consider the unadjusted trial balance of Edison, Inc., at December 31, 2016, and the related month-end adjustment
Question:
Adjustment data at December 31, 2016, include the following:
a. Accrued service revenue at December 31, $2,780.
b. Prepaid rent expired during the month. The unadjusted prepaid balance of $3,000 relates to the period December 1, 2016, through February 28, 2017.
c. Supplies used during December, $ 1,330.
d. Depreciation on furniture for the month. The furniture's expected useful life is five years.
e. Accrued salary expense at December 31 for Monday, Tuesday, and Wednesday. The five-day weekly payroll is $14,000 and will be paid on Friday.
Requirements
1. Using Exhibit 3-9 as an example, prepare the adjusted trial balance of Edison, Inc.. at December 31, 2016. Key each adjusting entry by letter.
2. Prepare the single-step income statement, the statement of retained earnings, and the classified balance sheet. Draw arrows linking the three statements.
Step by Step Answer:
Financial Accounting
ISBN: 978-0134127620
11th edition
Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz