26630 Question No. 01 (25 Marks) TRC Graphics, a sole proprietorship, adjusts and closes its books each month. On May 31, 2021 before adjusting entries are recorded, the trial balance for TRC Graphics is as shown: TRC Graphics Trial Balance May 31, 2021 Debit Credit Cash $10.500 Account Receivable 3,000 Supplies 2.250 Equipment 30,000 Accumulated Depreciation - Equipment $6,500 Account Payable 2,500 T.R. Cummings, Capital 23,750 T.R. Cummings, Drawing 2,500 Fee Earned 24,000 Supplies Expense 600 Salaries Expense 4.000 Rent Expense 2,400 Utilities Expense 1,500 S 56,750 $ 56,750 Adjustments: A. The Equipment was purchased in year 2020 and has an estimated useful life of five years with no residual value. Compute the amount of Depreciation expense on the equipment for May by using straight line method B. Utility bill of 5.2000 received but not paid by the end of May C. The Graphics estimates that supplies balance on May 31, 2021. total approximately $1.900. Compute supplies expense for May Required: A. Give the adjusting entries for above adjustments. B. Show the effects of adjusting entries in Ledger Accounts and prepare Adjusted Trial Balance C Give the closing entries which will appear in the books of TRC at the end of May. D. Show the effects of closing entries in Ledgers and prepare After closing Trial Balance E Prepare Income Statement for TRC Graphic's for the Month of May. F. Prepare Statement of Changes in Owner's Equity G. Prepare Balance Sheet