The trial balance of Alpha Graphics at October 31, 2007, follows, along with the data for the month-end adjustments.

Adjusting data at October 31:

a. Unearned service revenue still unearned, \(\$ 800\).

b. Prepaid rent still in force, \(\$ 2,000\).

c. Supplies used, \(\$ 770\)

d. Depreciation for the month, \(\$ 250\).

e. Accrued salary expense, \(\$ 310\).

Requirements 

1. Open the accounts listed in the trial balance, inserting their October 31 unadjusted balances. Also open the Income Summary account. Use fourcolumn accounts. Date the balances of the following accounts October 1: Prepaid Rent; Supplies; Equipment; 

Accumulated Depreciation; Unearned Service Revenue; and Courtney Rolfe, Capital.

If your instructor so directs, use T-accounts. Date the balances of the following accounts as of October 1: Prepaid Rent; Supplies; Equipment; Accumulated Depreciation; Unearned Service Revenue; and Courtney Rolfe, Capital.

2. Enter the trial balance on a work sheet and complete the work sheet of Alpha Graphics for the month ended October 31, 2007.

3. Prepare the income statement, statement of owner's equity, and classified balance sheet in report form. 

4. Using the work sheet data that you prepare, journalize and post the adjusting and closing entries. Use dates and show the ending balance of each account.

5. Prepare a postctosing trial balance. 

Transcribed Image Text:

Account Title Cash ALPHA GRAPHICS Trial Balance October 31, 2007 Balance Debit Credit $ 4,900 Accounts receivable Prepaid rent Supplies Equipment Accumulated depreciation Accounts payable Salary payable Unearned service revenue 15,310 2,200 840 31,370 $ 3,400 7,290 5,300 Courtney Rolfe, capital 28,290 Courtney Rolfe, withdrawals 3,900 Service revenue 17,100 Salary expense 2,860 Rent expense Depreciation expense Supplies expense Total $61,380 $61,380