A six-column table for JKL Company follows. The first two columns contain the unadjusted trial balance for the company as of July 31, 2018. The last two columns contain the adjusted trial balance as ofthe same date.

Required

Analysis Component

1. Analyze the differences between the unadjusted and adjusted trial balances to determine the eight adjustments that likely were made. Show the results of your analysis by inserting these adjustment amounts in the table?s two middle columns. Label each adjustment with a letter a through h and provide a short description of each.

2. Use the information in the adjusted trial balance to prepare the company?s (a) income statement and its statement of retained earnings for the year ended July 31, 2018 [Note: Retained earnings at July 31, 2017, was $25,000, and the current-year dividends were $5,000], and (b) the balance sheet as of July 31, 2018.

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Adjusted Unadjusted Trial Balance Adjustmonts Trial Balanco $ 34,000 $ 34,000 Cash Accounts receivable 14,000 22,000 Ofico supplios 16,000 2,000 Prepaid insurance 8,540 2,960 Oflice equipment. Accum. depreciation- Office equip. 84,000 84,000 $ 14,000 $ 20,000 Accounts payable 9,100 10,000 Interest payable. 1,000 Salaries payable 7.000 Uneamed consuting fees 18,000 15,000 Long-term notes payable 52,000 52,000 Common stock 15,000 15,000 Retained earnings.. 25,000 25,000 5,000 Dividends 5,000 Consulting fees eamed 123,240 134,240 Depraciation oxponso- Office equip. 6,000 Salaries expense 67,000 74,000 1,200 Interest expense 2,200 Insurance expense 5,580 Rent expense 14,500 14,500 Ofice supplies expense 14,000 Advertising expense 12.100 13.000 $256,340 $256,340 $279,240 $279,240 Totals