P3-7B The unadjusted trial balance of Christine Salomon, at July 31, 20X2, and the related month-end adjustment data follow. CHRISTINE SALOMON, CPA Trial Balance July 31, 20X2 Cash. $ 5.600 Accounts receivable. 11.600 Prepaid rent. 4,000 Supplies. 800 Furniture. 28,800 Accumulated depreciation. $ 3,500 Accounts payable. 3.450 Salary payable. Christine Salomon, capital. 39.050 Christine Salomon, withdrawals. 4,000 Accounting service revenue. 11.750 Salary expense.. 2,400 Rent expense. Utilities expense 550 Depreciation expense. Supplies expense Total... $57.750 $57.750 Adjustment data:

a. Accrued accounting service revenue at July 31, $900.

b. Prepaid rent expired during the month. The unadjusted prepaid balance of $4.000 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.

Required 1. Using Exhibit 3-10 as an example, write the trial balance on a work sheet and prepare the adjusted trial balance of Christine Salomon, CPA, at July 31, 20X2. Key each adjusting entry by letter. 2. Prepare the income statement and the statement of owner's equity for the month ended July 31, 20X2, and the balance sheet at that date. Draw arrows linking the three financial statements.