The unadjusted trial balance of Phillip Heider, Attorney, Professional Corporation (P.C.), at July 31, 19X2, and the related month-end adjustment data are as follows:

Adjustment data:

a. Accrued legal service revenue at July \(31, \$ 900\).

b. Prepaid rent expired during the month. The unadjusted prepaid balance of \(\$ 3,600\) relates to the period July through October.

c. Supplies on hand at July \(31, \$ 400\).

d. Depreciation on furniture for the month. The estimated useful life of the furniture is four years.

e. Accrued salary expense at July 31 for one day only. The five-day weekly payroll is \(\$ 1,000\).
\section*{Required}
1. Using Exhibit 3-10 as an example, write the trial balance on a work sheet and prepare the adjusted trial balance of Phillip Heider, Attorney, P.C., at July 31, 19X2. Key each adjusting entry by letter.
2. Prepare the income statement, the statement of retained earnings, and the balance sheet. Draw arrows linking the three financial statements.

Transcribed Image Text:

PHILLIP HEIDER, ATTORNEY, P.C. TRIAL BALANCE JULY 31, 19X2 Cash......... Accounts receivable......... Prepaid rent. Supplies....... $14,600 11,600 3,600 800 Accounts payable......... Furniture... Accumulated depreciation. Salary payable..... 16,800 $ 3,500 3,450 Common stock 25,000 Retained earnings. 13,650 Dividends........ 4,000 Legal service revenue 8,750 Salary expense... 2,400 Rent expense. Utilities expense 550 Depreciation expense. Supplies expense........... Total...... $54,350 $54,350