Consider the unadjusted trial balance of Tzarness, Inc. at December 31, 2023, and the related month-end adjustment data. (Click the icon to view the month-end adjustment data.) Requirements 1. Prepare the adjusted trial balance of Tzarness, Inc. at December 31, 2023. The unadjusted balances have been entered for you. Key each adjusting entry by letter. 2. Prepare the single-step monthly income statement, the statement of retained earnings, and the classified balance sheet. - More Info Adjustment data at December 31, 2023: a. Accrued service revenue at December 31, $3,930. b. Prepaid rent expired during the month. The unadjusted prepaid balance of $3,600 relates to the period December 1, 2023 through February 28, 2024. c. Supplies used during December, $1,520. d. Depreciation on furniture for the month. The estimated useful life of the furniture is five years. e. Accrued salary expense at December 31 for Monday, Tuesday and Wednesday. The five-day weekly payroll of $24,000 will be paid on Friday. For the purpose of this calculation, assume December 31 falls on a Wednesday. Requirement 1. Using the worksheet, prepare the adjusted trial balance of Tzarness, Inc., at December 31, 2023. The unadjusted balances have been entered for you. Key each adjusting Calculate the total debits and credits. Then calculate the adjusted balance of each account and total the debit and credit columns in the adjusted trial balance. Tzarness, Inc. Trial Balance Work Sheet December 31, 2023 Trial Balance Debit Credit 8,300 Adjustments Debit Credit Account Adjusted Trial Balance Debit Credit 8,300 5930 Cash Accounts receivable a 3930|a. 2,000 3,600 Prepaid rent 2,000 Supplies Furniture 51,000 Accumulated depreciation-furniture 4,000 3,700 Accounts payable Salary payable Common stock Retained earnings Dividends 13,000 32,600 4,100 Service revenue 21,600 3,400 Salary expense Rent expense Utilities expense 500 Depreciation expense-furniture Supplies expense 74,900 74,900 Total Requirement 2. Prepare the single-step monthly income statement, the statement of retained earnings, and the classified balance sheet Begin by preparing the income statement. (If an input field is not used in the statement leave the field empty, do not select a label or enter a zera.) Review the adjusted trial balance completed in Requirement 1. Tzarness, Inc. Income Statement Month Ended December 31, 2023 Service revenue Expenses: Salary expense Rent expense Utilities expense Supplies expense Depreciation expense-furniture Total expenses Net income Now prepare the statement of retained earnings. (Include a subtotal after the "Add" line of the statement) Review the adjusted trial balance completed in Requirement 1 Tzarness, Inc. statement of Retained Earnings Month Ended December 31, 2023 Retained earnings, December 1, 2023 Add: Subtotal Less Retained earnings, December 31, 2023 Finally, prepare the balance sheet. (If an input field is not used in the statement leave the field empty, do not select a label or enter a zero.) Review the adjusted trial balance completed in Requirement 1. Tzarness, Inc. Balance Sheet December 31, 2023 Assets Current assets: Cash Llabilities Current liabilities: Accounts payable Salary payable Accounts receivable Prepaid rent Supplies Total current assets Plantas Total current liabilities stockholders' Equity Common stock Furniture Retained earnings Less: Accumulated depreciation-furniture Total liabilities and stockholders' equity Total assets
