Your Talent Agency Ltd.'s unadjusted and adjusted trial balances at December 31, 2020 , are shown below.

Requirements

1. Make the adjusting entries that account for the difference between the two trial balances.

2. Compute Your Talent Agency Ltd.'s total assets, total liabilities, total equity, and net income.

3. Prove your answer with the accounting equation.

Transcribed Image Text:

1 A Your Talent Agency Ltd. Adjusted Trial Balance December 31, 2020 B C D E F 2 m Trial Balance Account Title Debit Credit Adjusted Trial Balance Debit Credit 5 in 6 4 Cash Accounts receivable Supplies $ 4,100 4,100 11,200 12,400 1,000 700 7 Prepaid insurance 2,600 900 8 Office furniture 21,600 21,600 9 Accumulated depreciation $ 8,200 $ 9,300 10 Accounts payable 6,300 6,300 11 Salary payable 900 12 Interest payable 400 13 Note payable 6,000 6,000 14 Unearned commission revenue 1,500 1,100 15 Share capital 5,000 5,000 16 Retained earnings 3,500 3,500 17 Dividends 18.300 18,300 18 Commission revenue 72,800 74.400 19 Depreciation expense 1,100 20 Supplies expense 300 21 Utilities expense 4,900 4.900 22 Salary expense 20.600 27.500 23 Rent expense 12,200 12,200 24 Interest expense 800 1,200 25 Insurance expense 1,700 26 $103,300 $103,300 $ 105,900 $106,900 27