Gonzales Upholstery, Inc.'s trial balance at the end of its fiscal year follows.

The following information is also available:
a. A study of the company's insurance policies shows that $380 is unexpired at the end of year.
b. An inventory of upholstery supplies shows $1,040 on hand.
c. Estimated depreciation on the building for the year is $9,800.
d. Accrued interest on the mortgage payable is $960.
e. On September 1, the company signed a contract, effective immediately, with County Community Bank to repair and reupholster office furniture, for a fixed monthly charge of $400. The bank paid for four months' service in advance.
f. Sales and delivery wages are paid on Saturday. The weekly payroll is $1,530. September 30 falls on a Thursday, and the company has a six-day pay week.
g. Estimated federal income taxes for the period are $2,410.
Required
All adjustments affect one balance sheet account and one income statement account. For each of the above 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:

Gonzales Upholstery, Inc. Trial Balance September 30, 2014 Cash Accounts Receivable Prepaid Insurance Upholstery Supplies Land Building Accumulated Depreciation-Building Accounts Payable Unearned Upholstery Revenue Mortgage Payable Common Stock Retained Earnings Dividends Upholstery Revenue Wages Expense Upholstery Equipment Rental Expense Delivery Truck Expense Interest Expense Other Expenses 16,288 16,494 1,900 4,370 18,000 125,000 26,300 17,400 1,600 90,000 3,000 4,756 10,000 157,634 81,930 6,000 4,374 9,300 7,034 300,690 300,690 Balance Amount of Balance After Income Amount of Statement Adjustment Balance After Sheet Adjustment Account (+o Adjustment r Adjustment