At the end of the current fiscal year, this was the trial balance of a Company:

A Company

Trial Balance

July 31, 2021

Cash 5,084

Accounts Receivable 3,551

Supplies 510

Prepaid Rent 1,200

Prepaid Insurance 1,080

Equipment 18,300

Accumulated Depreciation, Equipment 1,200

Account Payable 1,140

Unearned Dance Fees 2,700

Common Stock 4,500

Retained Earnings 3,000

Dividends 26,000

Dance Fees 62,985

Wages Expense 9,600

Rent Expense 6,600

Utility Expense 3,600 _____

75,525 75,525

The following information is available to help in the preparation of adjusting entries:

1. An inventory of supplies reveals $ 276 still on hand.

2. Prepaid rent reflects the rent for July.

3. Prepaid Insurance consists of a two-year policy purchased on February the 1st

4. Depreciation on equipment is estimated at $ 2,400.

1. Open T-accounts for the accounts in the trial balance plus the new T-accounts necessary for adjusting entries. Record the balances shown in the trial balance.

2. Determine the adjusting entries and post them directly to the T-accounts

3. Prepare an Adjusted Trial Balance, an Income Statement, a Statement of Retained Earnings, and a Balance Sheet.