QUEBUN , P3-43A (simi.. Part 1 of 11 The unadjusted trial balance of Royals Ltd at December 31, 2020, appears in the solution step below. The adjustment data at December 31, 2020, is provided Es (Click the icon to view the month-end adjustment data.) HW Score: 0% O Points: 001 Requirements Requirement 1. Using the worksheet, prepare the adjusted trial balance of Royals Ltd. at December 31, 2020. The unadjusted balances have been entered for you. Key each adjusting entry by letter Calculate the adjusted balance of each account, and then total the debit and credit columns in the adjusted trial balance, (Leave unused cells blank. Round your answers to the nearest whole number, Royals Ltd. Trial Balance Worksheet December 31, 2020 Trial Balance Adjustments Month-end adjustment data Account Debit Credit Debit Credit Cash Accounts receivable 9,300 18.000 Accrued service revenue 2.700 2,800 Adjustment data at December 31, 2020 a. Accrued service revenue at December 31, $1,900 b. Prepaid rent expired during the month. The unadjusted prepaid balance of $2,700 relates to the period December through February c. Supplies used during December, $2,800. d. Depreciation on furniture for the month. The estimated useful life of the furniture is three years. e. Accrued salary expense at December 31 for Monday, Tuesday, and Wednesday. The five-day weekly payroll of $5,500 will be paid on Friday, January 2. 37,800 3.200 19.000 25 000 Prepaid rent Supplies Furniture Accumulated depreciation Accounts payable Salary payable Share capital Retained earnings Dividends Service revenue Salary expense Rent expense Utilities expense Depreciation expense Supplies expense 11.100 Print Done 3,900 19.000 2,300 500 Total 77.300 77,300 Requirements x 1. Using the worksheet, prepare the adjusted trial balance of Royals Ltd. at December 31, 2020. The unadjusted balances have been entered for you. Key each adjusting entry by letter. 2. Prepare the income statement, the statement of retained earnings, and the classified balance sheet. 3. a. Compare the business's net income for December to the amount of dividends paid to the owners. Suppose this trend continues into January. What will be the effect on the business's financial position, as shown by its accounting equation? b. Will the trend make it easier or more difficult for Royals to borrow money if the business gets in a bind and needs cash? Why? c. Does either the current ratio or the cash position suggest the need for immediate borrowing? Explain. Print Done