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LO 3 , 4 P 3 - 6 2 A . ( Learning Objectives 3 , 4 : Adjust the accounts; construct the financial statements
LO PALearning Objectives : Adjust the accounts; construct the financial statements Consider the unadjusted trial balance of Princess, Inc., at December and the related monthend adjustment data.
tableAABcDEFotablePrincess Inc.Trial Balance WorksheetDecember Trial Balance,Adjustments,Adjusted Trial BalanceAccount,Debit,Credit,Debit,Credit,Debit,CreditCash,Accounts receivable,tablePrepaid rentESupplies,Furniture,Accumulated depreciationfurniture,,Accounts payable,,Salary payable,,,ECommon stock,,Retained earnings,,Dividends.,Service revenue,,Salary expense,Rent expense,,,,,,Utilities expense,Depreciation expense furniture,,Supplies expense,,,inTotal,
Adjustment data at December :
a Accrued service revenue at December $
b Prepaid rent expired during the month. The unadjusted prepaid balance of $ relates to the period December through February
c Supplies used during December, $
d Depreciation on furniture for the month. The estimated useful life of the furniture is five years.
e Accrued salary expense at December for Monday, Tuesday, and Wednesday. The fiveday weekly payroll of $ will be paid on Friday.
Requirements
Prepare the adjusted trial balance of Princess, Inc., at December Key each adjusting entry by letter.
Prepare the singlestep monthly income statement, the statement of retained earnings, and the classified balance sheet. Draw arrows linking the three statements.
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