The trial balances before and after adjustment for Lane Company at October 31, 2021, which is the end of its fiscal year, are as follows:

Instructions

a. Prepare the adjusting entries that were made.

b. Prepare Lane Company?s income statement, statement of owner?s equity, and balance sheet.

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Before Adjustment After Adjustment Debit Credit Debit Credit Cash $ 9,100 $ 9,100 Accounts receivable 8,700 9,230 Supplies Prepaid insurance Equipment Accumulated depreciation-equipment Accounts payable Notes payable Salaries payable Interest payable 2,450 710 3,775 2,525 34,100 34,100 $ 3,525 $ 5,800 5,900 5,900 40,000 40,000 1,125 500 Unearned revenue 1,600 900 E. Lane, capital E. Lane, drawings 5,600 5,600 10,000 10,000 Service revenue 45,000 46,230 2,275 Depreciation expense Insurance expense 1,250 Interest expense Rent expense Salaries expense Supplies expense 1,500 2,000 15,000 17,000 15,000 18,125 1,740 Totals $101,625 $101,625 $106,055 s106,055