The unadjusted trial balance of Halifax Research at December 31, 2023, appears below:

Adjustment data:

a. Accrued consulting revenue at December 31, $3,800.

b. The prepaid balance of $12,000 represented 1 year of rent. Four months of prepaid rent have been used.

c. Supplies remaining on hand at December 31, $900.

d. The estimated useful life of the furniture is 10 years, it will have no value at the end of the 10 years, and the straight-line method of amortization is used. Amortization expense had only been taken for the first 11 months.

e. Accrue salaries expense at December 31 for 3 days. The 5-day weekly payroll is $6,000.

Required

1. Prepare the adjusted trial balance of Halifax Research at December 31, 2023. List expense accounts showing highest to lowest amounts. Sketch T-accounts in your notes to calculate the new balances.

2. Prepare the income statement and the statement of owner’s equity for the year ended December 31, 2023, and the balance sheet at December 31, 2023. Report income statement accounts showing highest to lowest amounts. Draw the arrows linking the three financial statements or write a short description of how they are linked.

Transcribed Image Text:

HALIFAX RESEARCH Unadjusted Trial Balance December 31, 2023 Account Title Cash Accounts receivable Supplies Prepaid rent Furniture Accumulated amortization-furniture Accounts payable Salaries payable J. Suzuki, capital J. Suzuki, withdrawals Consulting revenue Salaries expense Rent expense Utilities expense Amortization expense-furniture Supplies expense Total Debit $ 24,200 38,500 2,400 12,000 72,000 46,000 32,000 33,000 12,000 6,600 0 $278,700 Credit $ 13,800 18,400 0 125,000 121,500 $278,700