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RST Corporation provided these account balances on February 28, 2024: Cash: $20,000 Accounts Receivable: $18,000 Inventory: $12,000 Accounts Payable: $9,000 Salaries Payable: $3,200 Building: $80,000
RST Corporation provided these account balances on February 28, 2024:
- Cash: $20,000
- Accounts Receivable: $18,000
- Inventory: $12,000
- Accounts Payable: $9,000
- Salaries Payable: $3,200
- Building: $80,000
- Accumulated Depreciation: $15,000
- Mortgage Payable: $40,000
- Common Stock: $25,000
- Retained Earnings: $40,800
Requirements:
- Prepare a trial balance.
- Journalize adjusting entries for:
- Depreciation expense: $5,000
- Inventory adjustment: $2,000
- Prepare an adjusted trial balance.
- Create a statement of owner's equity.
- Describe the purpose of a statement of owner's equity.
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