PST Corporation Account Balances as of July 31, 2024:

• Cash: $19,000
• Accounts Receivable: $14,000
• Inventory: $20,000
• Accounts Payable: $9,000
• Utilities Payable: $1,500
• Machinery: $55,000
• Accumulated Depreciation: $12,000
• Loan Payable: $27,000
• Common Stock: $37,000
• Retained Earnings: $18,000

Requirements:

1. Prepare a trial balance.
2. Record adjusting entries for the following:
   • Depreciation expense: $2,500
   • Utilities expense: $1,000
3. Prepare an adjusted trial balance.
4. Prepare a balance sheet.
5. Explain the importance of the going concern assumption.