Problem 3 10A Posting, adjusted trial balance, and preparing financial statements LO6, 7 Rainmaker Environmental Consultants is just finishing its second year of operations The companys unadjusted trial balance at October 31, 2023, follows RAINMAKER ENVIRONMENTAL CONSULTANTS Unadjusted Trial Balance October 31, 2023 Acct No Account Debit Credit 101 Cash $ 25,200 106 Accounts receivable 67,000 109 Interest receivable 0 111 Notes receivable 56,000 126 Supplies 4,500 128 Prepaid insurance 2,040 131 Prepaid rent 24,600 161 Office furniture 90,000 162 Accumulated depreciation, office furniture $ 24,000 201 Accounts payable 17,200 210 Wages payable 0 233 Unearned consulting revenue 24,400 301 Jeff Moore, capital 236,520 302 Jeff Moore, withdrawals 27,200 401 Consulting revenue 238,020 409 Interest income 400 601 Depreciation expense, office furniture 0 622 Wages expense 198,000 637 Insurance expense 0 640 Rent expense 40,000 650 Supplies expense 6,000 Totals $ 540,540 $ 540,540 Rainmaker prepares adjustments each October 31 The following additional information is available on October 31, 2023 It was determined that $11,200 of the unearned consulting revenue had not yet been earned It was discovered that $13,200 of the balance in the Consulting Revenue account was for services to be performed in November The balance in the Prepaid Rent account represents three months of rent beginning September 1, 2023 Accrued wages at October 31 totalled $6,000 The office furniture was purchased on March 1, 2022, and has an estimated useful life of two years After two years of use, it is expected that the furniture will be worthless Accrued consulting revenue at year end totalled $3,400 Interest of $77 had accrued on the note receivable for the month of October The balance in the Prepaid Insurance account represents the remaining balance of a two year policy purchased on April 1, 2022 A count of the supplies on October 31 revealed a balance remaining of $540 Required 1 Set up balance column accounts for Rainmaker Environmental Consultants and enter the balances listed in the unadjusted trial balance (Enter the adjusting values in the order of Transaction i e , a through i ) 2 Complete the following T Account with the adjusting entries for October 31, 2023 3 Prepare an adjusted trial balance 4 a Use the adjusted trial balance to prepare an income statement 4 b Use the adjusted trial balance to prepare a statement of changes in equity Assume that the owner, Jeff Moore, made no owner investments during the year 4 c Use the adjusted trial balance to prepare a balance sheet Assume that the owner, Jeff Moore, made no owner investments during the year (Be sure to list the assets and liabilities in order of their liquidity )

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Problem 3-10A Posting, adjusted trial balance, and preparing financial statements LO6, 7 Rainmaker Environmental Consultants is just finishing its second year of operations. The companys

Problem 3-10A Posting, adjusted trial balance, and preparing financial statements LO6, 7

Rainmaker Environmental Consultants is just finishing its second year of operations. The companys unadjusted trial balance at October 31, 2023, follows:

RAINMAKER ENVIRONMENTAL CONSULTANTS Unadjusted Trial Balance October 31, 2023
Acct.No.	Account	Debit		Credit
101	Cash	$	25,200
106	Accounts receivable		67,000
109	Interest receivable		0
111	Notes receivable		56,000
126	Supplies		4,500
128	Prepaid insurance		2,040
131	Prepaid rent		24,600
161	Office furniture		90,000
162	Accumulated depreciation, office furniture				$	24,000
201	Accounts payable					17,200
210	Wages payable					0
233	Unearned consulting revenue					24,400
301	Jeff Moore, capital					236,520
302	Jeff Moore, withdrawals		27,200
401	Consulting revenue					238,020
409	Interest income					400
601	Depreciation expense, office furniture		0
622	Wages expense		198,000
637	Insurance expense		0
640	Rent expense		40,000
650	Supplies expense		6,000
	Totals	$	540,540		$	540,540

Rainmaker prepares adjustments each October 31. The following additional information is available on October 31, 2023.

It was determined that $11,200 of the unearned consulting revenue had not yet been earned.
It was discovered that $13,200 of the balance in the Consulting Revenue account was for services to be performed in November.
The balance in the Prepaid Rent account represents three months of rent beginning September 1, 2023.
Accrued wages at October 31 totalled $6,000.
The office furniture was purchased on March 1, 2022, and has an estimated useful life of two years. After two years of use, it is expected that the furniture will be worthless.
Accrued consulting revenue at year-end totalled $3,400.
Interest of $77 had accrued on the note receivable for the month of October.
The balance in the Prepaid Insurance account represents the remaining balance of a two-year policy purchased on April 1, 2022.
A count of the supplies on October 31 revealed a balance remaining of $540.

Required: 1. Set up balance column accounts for Rainmaker Environmental Consultants and enter the balances listed in the unadjusted trial balance. (Enter the adjusting values in the order of Transaction i.e., a through i.)

2. Complete the following T-Account with the adjusting entries for October 31, 2023.

3. Prepare an adjusted trial balance.

4-a. Use the adjusted trial balance to prepare an income statement.

4-b. Use the adjusted trial balance to prepare a statement of changes in equity. Assume that the owner, Jeff Moore, made no owner investments during the year.

4-c. Use the adjusted trial balance to prepare a balance sheet. Assume that the owner, Jeff Moore, made no owner investments during the year. (Be sure to list the assets and liabilities in order of their liquidity.)