1. Depreciation of $100 per month will be taken on the furniture

2. It is estimated that the store- equipment will have a $ 1,000 value at the end of its estimated five-year (or 60 -month) useful life. Joanne will record a full month of depreciation for August.

3. It was determined that the balance in unearned service revenue at August 31 should be $420

4. The prepaid insurance represents six months of Insurance beginning August 1.

5. On August 31, The Cutlery provided $ 130 of services to a client who will pay in September.

6. On August 31, Joanne received the business August cell phone bill totalling $ 50. It will be paid in September.

Required

1. Prepare the adjusting entries needed on August 31, 2017, to record the previously unrecorded items. 5marks

2. Prepare T-Accounts for accounts affected by the adjusting entries. Post the adjusting entries to the T-Accounts 5 marks

3. Prepare a adjusted trial balance 10 marks

2. The Cutlery's August 31, 2017, unadjusted trial balance appeared as follows- The Cutlery Trial Balance August 31,2017 Dr Cr $4,950 0 2,400 2,000 31,000 Account Cash Accounts Receivable Prepaid Insurance Furniture Store Equipment Accounts Payable Unearned Service Revenue Joanne, Capital Joanne, Withdrawal Service Revenue Wages Expense Rent Expense Hydro expense Totals $14,450 500 26,000 500 3,800 250 3,200 450 $44,750 $44,750 The following additional information is available for the month just ended