Exercise 1: (5 marks)

The account balances appearing on the trial balance were taken from the general ledger of ABC Company at January 31. Additional information for January which has not yet been recorded in the accounts is as follows:

Depreciation on equipment for January was $1,200.

The amount of insurance that expired in January was $700.

Rent owed on ABC Company for January was $1,800 but will not be paid until February.

A physical count of supplies indicates $1,750 on hand at January 31^st.

Salaries owed on ABC Company for January was $2,700 but will not be paid until February.

A utility bill for $150 has not been recorded and will not be paid until next month.

$2,800 of unearned service revenue is recognized for services performed during the month.

Invoices representing $1,200 of services performed during the month have not been recorded as of June 30.

Accounts	Trial Balance
	Debit	Credit
Cash	12,500
Supplies	2,750
Prepaid insurance	5,500
Equipment	60,000
Accumulated Depreciation		11,250
Accounts payable		6,000
Notes payable		10,000
Owner capital		48,250
Owners drawings	6,000
Copy revenue		12,250
Utilities expense	1,000
Total	87,750	87,750

Required:

(a) Prepare the necessary adjusting entries for January.

(b) Prepare the adjusted trial balance for the month ended January 31.