The unadjusted trial balance of The Rock Industries Ltd. at January 31, 2017, appears below.

Adjustment data:

a. Accrued service revenue at January 31, $2,000

b. Prepaid rent expired during the month. The unadjusted prepaid balance of $3,000 relates to the period January through March.

c. Supplies used during January, $2,000

d. Depreciation on furniture for the month. The estimated useful life of the furniture is three years.

e. Accrued salary expense at January 31 for Monday, Tuesday, and Wednesday. The five-day weekly payroll of $5,000 will be paid on Friday, February 2.

Requirements

1. Using Exhibit 3-4, page 126, as an example, prepare the adjusted trial balance of The Rock Industries Ltd. at January 31, 2017. Key each adjusting entry by letter.

2. Prepare the income statement, the statement of retained earnings, and the classified balance sheet. Draw arrows linking the three financial statements?