The trial balance of XYZ Company at December 31, 2020, and the data needed for the month-end adjustments follow: XYZ Company. Trial Balance December 31, 2020 Account Debit Credit Cash $ 22,000 Accounts receivable S 44,000 S 2,500 $ 1.500 $ 420,000 $ 310,000 $ 2.000 Prepaid insurance Supplies Building Accumulated depreciation Accounts payable Salary payable Unearned service revenue Rama, capital Rama, drawing Service revenue $3,500 S 162,180 $ 3.540 $ 18,700 $ 1.900 Salary expense Insurance expense Depreciation expense Advertising expense Supplies expense Total $ 940 S496,380 S 496,380 Adjustment data at December 31 follow: Prepaid insurance still in force, $1,000. Supplies used during the month, $400. Depreciation for the month, $1,200. Accrued salary expense, $500. Unearned service revenue still unearned, $1500. Requirements 1. Journalize the adjusting entries. 2. Post the adjusting entries to the ledger accounts. 3. Prepare the adjusted trial balance. 4. Prepare the income statement (profit and loss account), statement of owner's equity, and balance sheet for the business for the month ended December 31, 2020. And analyse the differences between those financial statements in terms of purpose, structure, and content. 5. Journalize and post the closing entries to the ledger accounts and prepare post- closing trial balance. UNIT 10 FINANCIAL ACCOUNTING LO2 (Part 1) Journal Date Account and Explanation Debit Credit Ledger- Adjusting and Closing Entries Unearned service revenue Service revenue Insurance expense Prepaid insurance Supplies expense supplies = II Depreciation expense Accumulated depreciation Salary expense Salary payable Advertising expense Rama, capital Ledger- Adjusting and Closing Entries Unearned service revenue Service revrenue Insurance expense Prepaid insurance Supplies expense supplies = Depreciation expense Accumulated depreciation Salary expense Salary payable Advertising expense Rama, capital Income summary Rama, drawing Adjusted trial Balance Debit Account Credit II = Cash Accounts receivable Prepaid insurance Supplies Building Accumulated depreciation Accounts payable Salary payable Unearned service revenue Rama, capital Rama, drawing Service revenue Salary expense Insurance expense Depreciation expense Advertising expense Supplies expense Total Income Statement Total Statement of owners' equity = Balance sheet Liabilities and owners' equity Assets Liabilities Total assets Total abilities and owners' equity
