Question
Arrow Hospitality prepares adjustments monthly and showed the following at September 30, 2023: ARROW HOSPITALITY Trial Balances September 30, 2023 Unadjusted Adjusted Trial Balance Adjustments
Arrow Hospitality prepares adjustments monthly and showed the following at September 30, 2023: ARROW HOSPITALITY Trial Balances September 30, 2023 Unadjusted Adjusted Trial Balance Adjustments Trial Balance Account Dr. Cr. Dr. Cr. Dr. Cr. Cash $ 5,200 Accounts receivable 10,400 Repair supplies 1,800 Prepaid rent 13,200 Office furniture 21,360 Accounts payable $ 7,200 Notes payable 18,400 Eli Arrow, capital 66,718 Eli Arrow, withdrawals 4,200 Hospitality revenues 120,000 Salaries expense 140,000 Wages expense 16,158 Totals $ 212,318 $ 212,318 Additional information available for the month ended September 30, 2023: Interest of $138 had accrued on the notes payable for the month of September. The office furniture was acquired on September 1, 2023, and has an estimated four-year life. The furniture will be sold for about $1,200 at the end of its four-year life. A count of the Repair Supplies revealed a balance on hand of $620. A review of the Prepaid Rent account showed that $10,000 had been used during September. Accrued wages of $2,400 had not been recorded at month-end. The September Internet bill for $100 had been received and must be paid by October 14. Accrued revenues of $5,400 were not recorded at September 30. Required: 1. Complete the adjusted trial balance by including the adjusting entries. 2-a. Prepare an income statement based on the adjusted trial balance completed in Part 1. 2-b. Prepare a statement of changes in equity based on the adjusted trial balance completed in Part 1. Assume that the owner, Eli Arrow, made an investment during September of $2,800. 2-c. Prepare a balance sheet based on the adjusted trial balance completed in Part 1. Assume that the owner, Eli Arrow, made an investment during September of $3,600.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started