The unadjusted trial balance of Konnor’s Game Shop at December 31, 2025, and the data for the adjustments follow: 

Adjustment data: 

a. Unearned Revenue still unearned at December 31, $400. 

b. Prepaid Rent still in force at December 31, $1,800. 

c. Supplies used, $800. 

d. Depreciation, $400. 

e. Accrued Salaries Expense at December 31, $500.

Requirements 

1. Open the T-accounts using the balances in the unadjusted trial balance. 

2. Prepare the adjusting entries and post to the accounts. 

3. Prepare an adjusted trial balance. 

4. Prepare the income statement, the statement of retained earnings, and the classified balance sheet in report form. 

5. Prepare the closing entries and post to the accounts. 

6. Prepare a post-closing trial balance. 

7. Calculate the current ratio for the company.

Transcribed Image Text:

KONNOR'S GAME SHOP Unadjusted Trial Balance December 31, 2025 Account Title Cash Accounts Receivable Prepaid Rent Supplies Equipment Accumulated Depreciation Equipment Accounts Payable Salaries Payable Unearned Revenue Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Rent Expense Depreciation Expense-Equipment Supplies Expense Total Balance Debit $ 4,400 14,800 2,300 1,200 30,100 4,800 2,500 $ 60,100 Credit $4,600 7,500 4,900 20,000 5,700 17,400 $ 60,100