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ABC Services Inc. Scenario: Prepare Adjusted Trial Balance Trial Balance Data: Cash: $50,000 Accounts Receivable: $30,000 Inventory: $20,000 Accounts Payable: $15,000 Capital: $70,000 Adjustments: Depreciation
ABC Services Inc.
Scenario: Prepare Adjusted Trial Balance
Trial Balance Data:
- Cash: $50,000
- Accounts Receivable: $30,000
- Inventory: $20,000
- Accounts Payable: $15,000
- Capital: $70,000
Adjustments:
- Depreciation Expense: $5,000
- Accrued Salaries: $3,000
Requirements:
- Prepare the Adjusted Trial Balance as of December 31, 2023.
- Prepare the Income Statement and Balance Sheet based on the adjusted trial balance.
- Discuss the impact of adjustments on the financial statements.
- Analyze the liquidity position based on the adjusted trial balance.
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