E3.17

Prepare adjusting entries from analysis of trial balances.

(LO 2, 3, 4) The trial balances before and after adjustment for Renfro Company at the end of its fiscal year are presented below.

Renfro Company Trial Balance August 31, 2020
	Before Adjustment		After Adjustment
	Dr.	Cr.	Dr.	Cr.
Cash	$10,400		$10,400
Accounts Receivable	8,800		11,200
Supplies	2,300		700
Prepaid Insurance	4,000		2,500
Equipment	14,000		14,000
Accumulated DepreciationEquipment		$ 3,600		$ 4,500
Accounts Payable		5,800		5,800
Salaries and Wages Payable		-0-		1,100
Unearned Rent Revenue		1,500		400
Owner's Capital		15,600		15,600
Service Revenue		34,000		36,400
Rent Revenue		11,000		12,100
Salaries and Wages Expense	17,000		18,100
Supplies Expense	-0-		1,600
Rent Expense	15,000		15,000
Insurance Expense	-0-		1,500
Depreciation Expense	-0-		900
	$71,500	$71,500	$75,900	$75,900

Instructions

1. Prepare the income statement for the year.

2. Prepare the owners equity statement for the year.

3. Prepare the income and owner's equity statements for the year and the balance sheet at August 31 (List Assets in order of liquidity.)