Kirk Enterprises offers rug cleaning services to business clients. Below is the trial balance for Kirk Enterprises, which was prepared on the end-of-period spreadsheet (worksheet) for the year ended July 31, 2016. (Kirk's first year of operations) 4 5 6 Kirk Enterprises + 7 8 End-of-Period Spreadsheet For the Year Ended July 31, 2016 9 Trial Balance Adjustments Adjusted Trial Balance 10 Debit Credit Debit Credit Debit Credit 11 Cash 36 12 Prepaid Insurance 12 13 Fees Receivable 56 14 Supplies 12 15 Equipment 60 16 Accum. Depreciation 17 Unearned Revenue 18 Accounts Payable 20 44 19 Wages Payable 20 Common Stock 84 21 Retained Earnings 22 Dividends 4 23 Service Revenue 80 24 Advertising Expense 28 25 Wage Expense 20 26 Insurance Expense 27 Supplies Expense 28 Depreciation Expense 29 Totals 228 228 0 0 0 30 31 Requirements 32 33 34 35 36 37 38 1) Using the "adjusting entry information" below, enter the adjusting entry needed in the "Adjustments" columns of the work sheet. 2) After completing the adjusting entries, compute and show the adjusted balances in the "Adjusted Trial Balance" columns. 3) Using the prepared tables below prepare in "GOOD FORM" an Income Statement, Statement of Retained Earnings and a Balance Sheet (CLASSIFIED). Proper TITLES are required for each statement. Adjusting entry information as of July 31, 2016 a) The equipment is estimated to last for 5 years The asset will be depreciated evenly over its useful life. 36 Adjusting entry information as of July 31, 2016 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 Income Statement Statement of Retained Earnings a) The equipment is estimated to last for 5 years The asset will be depreciated evenly over its useful life. b) Accrued earner wages, $2. These wages will be paid in August. c) Unused supplies on hand at the end of the year, $8. d) Unexpired insurance remaining at the end of the year, $9. e) $15 of Previously collected Unearned Revenue has been earned (7/31/16) 1 2 3 4 5 6 Statement of Retained Earnings CLASSIFIED Balance Sheet +