1.

At the end of the first three months of operations, a Company has the trial balance that appears below. A Company

Trial Balance

As on March 31, 2020

$ $

Cash 6,964

Accounts Receivable 8,472

Office Supplies 1,806

Prepaid Rent 1,600

Equipment 9,400

Accounts Payable 5,346

Unearned Answering Service Revenue 1,776

Common Stock 11,866

Dividends 4,260

Answering Service Revenue 18,004

Wages Expense 3,800

Office Cleaning Expense 690__________________

36,992 36,992

Upon examining the accounting, the chief accountant finds the following:

1. An inventory of office supplies reveals office supplies on hand of $266
2. The prepaid rent account includes the rent for the first three months plus a deposit for Aprils rent
3. Depreciation on the equipment for the first three months is $416
4. The balance of the Unearned Answering Service Revenue account represents a 12-month service contract paid in advance on February 1.

1. Open T accounts for the accounts in the trial balance plus extra necessary to do the adjustments.
2. Determine the adjusting entries and post them directly to the T accounts.

3. Prepare an Adjusted Trial Balance, an Income Statement, a Statement of

Retained Earnings and a Balance Sheet