Solve this following question:

Afia Agency was founded in January 2017. Presented below is the trial balance as of March 31, 2020, the end of the companys fiscal year.

Afia Agency Trial Balance March 31, 2020
	Debit	Credit
Cash	$135,000
Accounts Receivable	97,500
Allowance for Doubtful Accounts		$ 2,300
Notes Receivable	38,700
Art Supplies	34,700
Prepaid Rent	26,500
Printing Equipment	65,000
Accumulated Depreciation Printing Equipment		12,000
Building	160,000
Accumulated Depreciation Building		33,000
Notes Payable		30,800
Accounts Payable		28,500
Unearned Advertising Revenue		34,800
Share Capital Ordinary		300,000
Retained Earnings		39,500
Dividends	22,200
Advertising Revenue		278,750
Salaries Expense	114,300
Utilities Expense	22,600
Insurance Expense	16,750
Miscellaneous Expense	26,400
Totals	$759,650	$759,650

Instructions

a) Prepare the adjusting entries for these accounts:

- Art supplies (Supplies expense)

- Accumulated Depreciation Printing Equipment

- Accumulated Depreciation Building

- Allowance for doubtful Accounts (Bad debt expense)

- Notes receivable (Interest revenue)

- Notes payable (Interest expense)

- Salaries expense

- Rent Expense

- Unearned Advertising Revenue

You need to set your own assumptions in order to adjust the accounts. Those assumptions should be in consistency with your trial balance.

Example

The trial balance is showing the following balance for Art Supplies:

		Dr	Cr
	Art Supplies	34,700

Your assumption could be formulated as follows:

1. Art Supplies: An inventory count at the end of the year reveals that $4,700 of supplies are still on hand.

So the cost of supplies used = 34,700-4,700=30,000

Adjusting entry for supplies:

Dr: Supplies Expense 30,000

Cr: Art Supplies 30,000

You need to do same for the other adjustments. You can follow the textbook pp 106-117.

b) Post the adjusting entries to the ledger

c) Prepare an adjusted trial balance

d) Prepare the worksheet

e) Prepare financial statements: Income statement, retained earnings statement, and statement of financial position

f) Journalize and post the closing entries

g) Prepare a post-closing trial balance