Kenwood International

Trial Balance

June 30, 2012

Account Title Debit Credit

Cash 23,600

Account receivables 7,200

Prepaid rent 9,600

Unexpired insurance 21,000

Air craft 1200,000

Accumulated depreciation 380,000

Notes payables 600,000

Unearned passenger revenue 60,000

Mary Capital 230,850

Mary Drawings 7000

Fright revenue 130,950

Fuel expense 53,800

Salaries expense 66,700

Miscellaneous expense 12,900

Total 1,401,800 1,401,800

Adjustments:

1. The air craft is being depreciated by straight line method over a period of 10 years.

2. Salaries earned by employees but net yet paid amount to $ 3,300.

3. Three months rent $ 14,400 had been prepaid on May1.

4. On April 1, a 12 month insurance policy had been purchased for $ 25,200.

5. Out of unearned passenger revenue $ 38,650 has been earned in the month of June.

Required:

1. Prepare adjusted trial balance. (5)

2. Prepare an income statement and a balance sheet. (5+5)