1. As the head accountant of a small business, you are preparing to complete the entire accounting cycle for your business's quarterly books. You have already prepared the following chart of accounts:

Assets

Cash: $27,500

Accounts receivable: $3,500

Equipment: $6,000

Accumulated depreciation: $0

Liabilities

Accounts payable: $3,000

Equity

Equity: $19,000

Revenue

Revenue: $27,000

Expenses

Depreciation: $0

Rent: $4,500

Supplies: $2,500

Utilities: $1,000

Wages: $4,000

a. Begin by preparing a unadjusted trial balance for these accounts.

b. After a trial balance has been prepared, you learn that you will need to make an adjustment after depreciation of the equipment was calculated at $200. Show how to make a ten-column worksheet that reflects this adjustment.

c. Now, use this information to make an income statement, statement of owner's equity, and balance sheet. Start with the income statement.

d. Use the income statement you have prepared to make a statement of owner's equity.

e. Use the statement of owner's equity you have prepared to make a balance sheet.