85 PTS: QUESTION 7 (WITH SEX PARTS) COMPREHENSIVE PROBLEM Below is an unadjusted trial balance for the year 2020 for Monster Comprehensive Company (MCC MCC provides services to their customers Good news! All of the initial transactions have already been posted Use the Unadjusted Trial Balance below to complete the TB worksheet and financials statements Unadjusted ACCOUNT Unadjusted Debit Credit CASH 18 A/R 20 7 SUPPLIES PREPAID RENT 6 65 EQUIPMENT ACCUMULATED DEPRECIATION 13 18 A/P UNEARNED REVENUE INTEREST PAYABLE LOAN PAYABLE 50 COMMON STOCK 10 15 RETAINED EARNINGS DIVIDENDS 10 SERVICE REVENUE 75 DEPRECIATION EXPENSE INTEREST EXPENSE DEPRECIATION EXPENSE INTEREST EXPENSE RENT EXPENSE 7 SUPPLIES EXPENSE WAGES EXPENSE 48 TOTALS $181 $181 Additional Information: Use this info below to make adjusting entries. a) The company used $4 in supplies during the year. The usage of the supplies has not been recorded. Remaining supplies will be used in 2021. b) The Prepaid Rent was paid Aug 1 2020 for 6 months of rent (Aug 2020 - Jan 2021) c) MCC earned $10 during December related to amounts previously paid by customers. d) MCC also earned $5 for services completed in December that the customers have not paid for. e) The Equipment was placed in service on May 1, 2020. The salvage value is estimated to be $5 and the useful life is expected to be 5 years. f) The loan payable began on May 1, 2020. The lender is charging 6% interest, which is due each year beginning April 30, 2021. The principal balance will be due in 2024. **REQUIRED** Use the additional information and unadjusted trial balance to prepare the following for Monster Comprehensive Company for the year 2020. 1. Adjusting Journal Entries - Prepared in proper form! That mean memos and proper indenting. SHOW YOUR CALCULATIONS! You may write all the journals on one page, please label w/the transaction letter. 2. Adjusted Trial Balance : AJE's MUST be posted to T Accounts or shown in the columns of your TB worksheet. I need to see how you get from the Unadjusted to Adjusted account balances Additional Information a) The company used $4 in supplies during the year. The usage of the supplies has not been recorded. Remaining supplies will be used in 2021 b) The Prepaid Rent was paid Aug 1 2020 for 6 months of rent (Aug 2020 - Jan 2021) c) MCC earned $10 during December related to amounts previously paid by customers. d) MCC also earned $5 for services completed in December that the customers have not paid for. e) The Equipment was placed in service on May 1, 2020. The salvage value is estimated to be $5 and the useful life is expected to be 5 years. f) The loan payable began on May 1, 2020. The lender is charging 6% interest, which is due each year beginning April 30, 2021. The principal balance will be due in 2024. **REQUIRED** Use the additional information and unadjusted trial balance to prepare the following for Monster Comprehensive Company for the year 2020. 1. Adjusting Journal Entries - Prepared in proper form! That mean memos and proper indenting. SHOW YOUR CALCULATIONS! You may write all the journals on one page, please label w/the transaction letter. 2. Adjusted Trial Balance : AJE's MUST be posted to T Accounts or shown in the columns of your TB worksheet. I need to see how you get from the Unadjusted to Adjusted account balances 3. Income Statement 4. Statement of RE (you may prepare on same page as Inc Stmt) 5. Classified Balance sheet - (put on it's own page please) 6. Post Closing Trial Balance : use T Accounts or the columns in the TB worksheet to assist you, if needed