P3-65A. (Learning Objective 3: Analyzing and recording adjustments) Cherrytree Apartments, Inc.’s unadjusted and adjusted trial balances at April 30, 20X6, follow.

Requirements 1. Make the adjusting entries that account for the differences between the two trial balances.
2. Compute Cherrytree’s total assets, total liabilities, total equity, and net income.

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1 A1 Cherrytree Apartments, Inc. Adjusted Trial Balance 2 3 Account 4 Cash 5 Accounts receivable April 30, 20X6 Trial Balance Debit Credit $ 8,900 Adjusted Trial Balance Debit Credit $ 8,900 7,580 6 Interest receivable 7 Note receivable 8 Supplies 9 Prepaid insurance 10 Building 11 Accumulated depreciation 12 Accounts payable 13 Wages payable 14 Unearned rental revenue 15 Share capital 16 Retained earnings 17 Dividends 18 Rental revenue 19 Interest revenue 20 Depreciation expense 21 Supplies expense 22 Utilities expense 23 Wage expense 24 Property tax expense 25 Insurance expense 26 Total 27 5,900 400 4,400 4,400 1,800 800 2,300 500 70,000 70,000 $ 7,400 $ 8,900 6,700 6,700 1,100 2,100 1,400 17,000 17,000 40,000 40,000 3,300 3,300 25,100 27,480 400 600 1,500 1,000 400 1,300 400 400 2,400 400 1,800 $ 98,700 $98,700 $103,380 $103,380