(Learning Objectives 3, 4: Preparing an adjusted trial balance and the fi nancial statements) Consider the unadjusted trial balance of London, Inc., at December 31, 20X6, and the related month-end adjustment data.

Adjustment data December 31, 20X6:

a. Accrued service revenue at December 31, $2,100.

b. Prepaid rent expired during the month. The unadjusted prepaid balance of $2,400 relates to the period December 1, 20X6 through February, 20X7.

c. Supplies used during December, $2,170.

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

e. Accrued salary expense at December 31 for Monday, Tuesday, and Wednesday. The fi ve-day weekly payroll of $4,800 will be paid on Friday

❙ Requirements 1. Using Exhibit 3-9 as an example, prepare the adjusted trial balance of London, Inc., at December 31, 20X6. Key each adjusting entry by letter.
2. Prepare the monthly income statement, the statement of changes in equity, and the classifi ed balance sheet. Draw arrows linking the three statements.