P$3-55.$ Preparing Accounting Adjustments

Wysocki Wheels began operations on March $1$ to provide automotive wheel alignment and balancing

services. On March $31,$ accounting records revealed the following account balances. The following information is also available.

The balance in prepaid rent was the amount paid on March $1$ to cover the first six months' rent.

Supplies available on March $31$ amounted to $$1,360.$

Equipment has an estimated life of nine years $($or $108$ months$).$

Unpaid and unrecorded wages at March $31$ were $$1,560.$

Utility services used during March were estimated at $$390$; a bill is expected early in April.

The balance in unearned service revenue was the amount received on March $1$ from a car dealer

to cover alignment and balancing services on cars sold by the dealer in March and April. Wysocki

Wheels agreed to provide the services at a fixed fee of $$500$ each month.

Required

a$.$ Prepare the accounting adjustments at March $31$ in journal entry form.

b$.$ Set up T$-$accounts, and post the accounting adjustments to them.

c$.$ Prepare the income statement for March and its balance sheet at March $31.$

d$.$ Prepare entries to close the temporary accounts in journal entry form. Post the closing entries to the

T$-$accounts.