Delta Services Inc.

Scenario: Adjusted Trial Balance and Financial Statements

Trial Balance Data:

• Cash: $40,000
• Accounts Receivable: $25,000
• Supplies: $5,000
• Accounts Payable: $10,000
• Capital: $60,000

Adjustments:

• Supplies expense: $2,000 (used)
• Depreciation expense: $5,000

Requirements:

1. Prepare the adjusted trial balance.
2. Prepare the income statement and balance sheet based on the adjusted trial balance.
3. Discuss the impact of adjustments on the financial statements.