Consider the unadjusted trial balance of Star Limo Service Company at September 30, 2012, and the related month-end adjustment data.

Adjustment data at September 30 follow:
a. Accrued service revenue at September 30, $1,800.
b. One-fifth of the prepaid rent expired during the month.
c. Supplies on hand at September 30, $800.
d. Depreciation on automobile for the month, $1,000.
e. Accrued salary expense at September 30 for one day only.
The five-day weekly payroll is $1,200.
Requirements
1. Write the trial balance on a worksheet, using Exhibit 3-8 as an example, and prepare the adjusted trial balance of Star Limo Service at September 30, 2012. Key each adjusting entry by letter.
2. Prepare the income statement and the statement of retained earnings for the month ended September 30, 2012, and the balance sheet at thatdate.

Transcribed Image Text:

STAR LIMO SERVICE COMPANY Trial Balance September 30, 2012 Balance Debit Credit $ 6,800 Account Cash Accounts receivable 1,400 Prepaid rent Supplies Automobile 5,000 1,200 72,000 $ 3,800 Accumulated depreciation Accounts payable Salary payable 3,600 Common stock 61,200 Retained earnings 13,800 Dividends 3,700 Service revenue 9,700 Salary expense Rent expense Fuel expense Depreciation expense Supplies expense 1,400 600 Total $92,100 $92,100