O CHAPTER 4 are adjusting entries, sted trial balance, ncial statements, and ang entries. 4) AP Completion of the Accounting Cycle P4-2A The following is Edge Sports Repair Shop's trial balance at September 30, 2008, the com pany's fiscal year end EDGE SPORTS REPAIR SHOP Trial Balance September 30, 2008 Debit Credit $ 10,470 Cash 1,450 Accounts receivable 4,140 Prepaid insurance 3.780 Supplies 55.000 Land 98,000 Building Accumulated amortization-building $17.150 38,000 Equipment 9.500 Accumulated amortization-equipment 4,300 Accounts payable 2,280 Unearned revenue Mortgage payable 105,000 L. Bachchan, capital 60,000 L. Bachchan, drawings 93,525 Service revenue 198,450 Salaries expense 75,900 Utilities expense 11.100 Interest expense 5,315 $396,680 $396.680 Other data: 1. Service revenue earned but not recorded at September 30, 2008, was $1,150. 2. The 12-month insurance policy was purchased on February 1, 2008. 3. A physical count of supplies shows $960 on hand on September 30, 2008. 4. The building has an estimated useful life of 40 years. The equipment has an estimated useful life of 8 years. 5. Salaries of $1,075 are accrued and unpaid at September 30, 2008. 6. The mortgage payable has a 6% interest rate. Interest is paid on the first day of each month for the previous month's interest. 7. On September 30, 2008, one quarter of the unearned revenue was still unearned. 8. During the next fiscal year, $5,400 of the mortgage payable is to be paid. Instructions (a) Prepare the adjusting entries. (b) Prepare an adjusted trial balance. (c) Prepare an income statement, statement of owner's equity, and classified balance sheet. L. Bach- chan invested $4,000 cash in the business on November 21, 2007. (d) Prepare the closing entries