The trial balance of Wortham Insurance Agency, Inc., at August 31, 19X9, and the data needed for the month-end adjustments follow.

a. Unearned commission revenue still unearned at August \(31, \$ 6,750\).

b. Prepaid rent still in force at August \(31, \$ 1,050\).

c. Supplies used during the month, \(\$ 340\).

d. Depreciation on furniture for the month, \(\$ 370\).

e. Depreciation on building for the month, \(\$ 130\).

f. Accrued salary expense at August \(31, \$ 460\).
\section*{Required}
1. Open the accounts listed in the trial balance and insert their August 31 unadjusted balances. Also open the Income Summary account, number 33. Use four-column accounts. Date the balances of the following accounts as of August 1: Prepaid Rent, Supplies, Furniture, Accumulated Depreciation--Furniture, Building, Accumulated Depreciation-Building, Unearned Commission Revenue, and Retained Earnings.
2. Write the trial balance on a work sheet and complete the work sheet of Wortham Insurance Agency, Inc., for the month ended August 31, 19X9.
3. Prepare the income statement, the statement of retained earnings, and the classified balance sheet in report format.
4. Using the work sheet data, journalize and post the adjusting and closing entries. Use dates and posting references. Use 7 as the number of the journal page.
5. Prepare a postclosing trial balance.

Transcribed Image Text:

Account Number Account Title Debit Credit 11 Cash $ 3,800 12 Accounts receivable. 13 Prepaid rent 15,560 1,290 14 Supplies.. 900 15 Furniture..... 15,350 16 Accumulated depreciation-furniture $ 12,800 17 Building 89,900 18 Accumulated depreciation-building. 28,600 21 Accounts payable. 4,240 22 Salary payable.. 23 Unearned commission revenue. 8,900 31 Common stock. 50,000 32 Retained earnings. 21,920 33 Dividends. 4,800 41 Commission revenue. 7,300 51 Salary expense.... 1,100 52 Rent expense.. 53 Utilities expense. 410 54 Depreciation expense-furniture.. 55 Depreciation expense-building 56 Advertising expense.. 57 Supplies expense. Total 650 $133,760 $133,760