Adjusting Entries and Financial Statements 

Account	Unadjusted Balance ($)
Cash	5,000
Accounts Receivable	8,000
Prepaid Insurance	1,200
Equipment	10,000
Accumulated Depreciation	2,000
Accounts Payable	3,000
Unearned Revenue	1,000
Common Stock	10,000
Retained Earnings	8,000
Service Revenue	12,000
Salaries Expense	2,500
Rent Expense	1,500

Adjustments:

1. Supplies on hand: $200
2. Depreciation: $400
3. Unearned revenue earned: $600
4. Accrued salaries: $500

Tasks:

1. Prepare the adjusting entries.
2. Prepare an adjusted trial balance.
3. Prepare an income statement and a balance sheet for the month.

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