Preparing Adjusting Entries, Trial Balances, Financial Statements, and Closing Entries

The unadjusted trial balance for Brown Inc. follows.

Additional information for accounting adjustments

A year$-$end count revealed $$2,000$ of supplies still available.

Annual depreciation expense on the equipment is $$1,000.$

Unpaid and unrecorded salaries is $$2,000$ at year$-$end

The note payable calls for annual interest of $8\%,$ payable each September $30.$ The principal amount of the note is not due for several years.

Adjusting Journal Entries Adjusted Trial Balance $$

Closing Journal Entries

c$.$ Prepare the income statement for the year and the balance sheet at year$-$end.

Note: Do not use negative signs with your answers.

$-$Note: Use negative signs only in the 'Assets' section of the balance sheet for contra asset accounts.