The trial balance work sheet and adjustment data of Kara’s Motors, Inc., at June 30, 2010, follow:

Additional data at June 30, 2010:

a. Depreciation on equipment, $700

b. Accrued wage expense, $700

c. Supplies on hand, $400

d. Prepaid insurance expired during June, $600

e. Unearned service revenue earned during June, $4,500

f. Accrued service revenue, \($1,000\)

Requirements

1. Complete Kara’s work sheet for June. Key adjusting entries by letter.
2. Prepare the income statement, the statement of retained earnings, and the classified balance sheet in account form for the month ended June 30, 2010.

Transcribed Image Text:

KARA'S MOTORS, INC. Trial Balance June 30, 2010 Trial Balance Account Debit Credit Cash 4,300 Accounts receivable 27,500 Supplies 500 Prepaid insurance 1,400 Equipment 53,800 Accumulated depreciation 35,800 Accounts payable 13,300 Wages payable Unearned service revenue 8,400 Common stock 5,000 Retained earnings 15,300 Dividends 3,700 Service revenue 16,400 Depreciation expense Wage expense 1,700 Insurance expense Utilities expense 1,300 Supplies expense Total 94,200 94,200