A six-column table for JJW Company follows. The first two columns contain the unadjusted trial balance for the company as of July 31, 2005. The last two columns contain the adjusted trial balance as of the 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 it at the bottom of the table.

2. Use the information in the adjusted trial balance to prepare the company’s

(a) income statement and its statement of owner’s equity for the year ended July 31, 2005 (note: J. Winner, Capital at July 31, 2004, was \($28,420,\) and the current-year withdrawals were \($10,000),\) and (b) the balance sheet as of July 31, 2005.

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Cash Accounts receivable. Office supplies Prepaid insurance Office equipment Unadjusted Trial Balance Adjustments $ 27.000 12,000 18,000 7.320 92,000 Adjusted Trial Balance $ 27,000 22.460 3,000 4,880 92,000 Accum, depreciation- Office equip. Accounts payable Interest payable $ 12,000 9,300 $ 18,000 10,200 0 800 Salaries payable Unearned consulting fees Long-term notes payable 0 6,600 16,000 14.300 44,000 44,000 J. Winner, Capital. 28,420 28,420 J. Winner, Withdrawals 10,000 10,000 Consulting fees earned 156,000 168,160 Depreciation expense- Office equip. 0 6,000 Salaries expense 71,000 77,600 Interest expense 1,400 2,200 Insurance expense 0 2.440 Rent expense 13,200 13,200 Office supplies expense 0 15,000 Advertising expense 13,800 14,700 Totals $265,720 $265,720 $290,480 $290,480