The trial balances before and after adjustment for Lane Company at October 31, 2024, 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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Cash Accounts receivable Supplies Prepaid insurance Equipment Accumulated depreciation-equipment Accounts payable Salaries payable Interest payable Unearned revenue Notes payable E. Lane, capital E. Lane, drawings Service revenue Depreciation expense Insurance expense Interest expense Rent expense Salaries expense Supplies expense Totals Before Adjustment Debit $ 9,100 8,700 2,450 3,775 34,100 10,000 0 0 1,500 15,000 17,000 0 $101,625 Credit $ 3,525 5,900 0 0 1,600 40,000 5,600 45,000 $101,625 After Adjustment Debit $ 9,100 9,230 710 2,525 34,100 10,000 2,275 1,250 2,000 15,000 18,125 1,740 $106,055 Credit $ 5,800 5,900 1,125 500 900 40,000 5,600 46,230 $106,055