Question
PQR Co. provides the following unadjusted trial balance as of June 30: Cash: $5,000 Accounts Receivable: $8,000 Prepaid Insurance: $1,200 Equipment: $10,000 Accumulated Depreciation: $2,000
PQR Co. provides the following unadjusted trial balance as of June 30:
•Cash: $5,000
•Accounts Receivable: $8,000
•Prepaid Insurance: $1,200
•Equipment: $10,000
•Accumulated Depreciation: $2,000
•Accounts Payable: $3,000
•Unearned Revenue: $1,000
•Common Stock: $10,000
•Retained Earnings: $8,000
•Service Revenue: $12,000
•Salaries Expense: $2,500
•Rent Expense: $1,500
Additional information:
1.A count of supplies shows $200 of supplies on hand at June 30.
2.Depreciation on equipment for the month is $400.
3.Unearned revenue of $600 has been earned.
4.Accrued salaries are $500.
Tasks:
1.Prepare the adjusting entries as of June 30.
2.Prepare an adjusted trial balance.
3.Prepare an income statement and a balance sheet for the month ended June 30.
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