The trial balance of Road Runner Internet at August 31, 2009, and the data for the month-end adjustments follow.

Adjustment data:

a. Unearned service revenue still unearned at August \(31, \$ 6,500\).

b. Prepaid rent still in force at August \(31, \$ 1,000\).

c. Supplies used during the month, \(\$ 500\).

d. Depreciation for the month, \(\$ 300\).

e. Accrued salary expense at August \(31, \$ 400\).

Requirements 

1. Open the accounts listed in the trial balance and insert their August 31 unadjusted balances. Also open the Income Summary account. Use four-column accounts. Date the balances of the following accounts as of August 1: Prepaid Rent; Supplies; Equipment; Accumulated Depreciation; Unearned Service Revenue; and Speedy Rhodes, Capital.

If your instructor so directs, use T-accounts. Date the balances of the following accounts as of August 1: Prepaid Rent; Supplies;

Equipment; Accumulated Depreciation; Unearned Service Revenue; and Speedy Rhodes, Capital.

2. Enter the trial balance on a work sheet and complete the work sheet of Road Runner Internet for the month ended August 31, 2009.

3. Prepare the income statement, the statement of owner's equity, and the 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 post closing trial balance.

Transcribed Image Text:

ROAD RUNNER INTERNET Trial Balance August 31, 2009 Balance Account Title Cash Debit Credit $ 3,000 Accounts receivable Prepaid rent 6,500 1,200 Supplies 900 Equipment Accumulated depreciation Accounts payable Salary payable Unearned service revenue 35,300 $12,800 4,200 8,900 Speedy Rhodes, capital 10,400 Speedy Rhodes, withdrawals 4,800 Service revenue 27,300 Salary expense 2,100 Rent expense 9,800 Depreciation expense Supplies expense Total $63,600 $63,600