The Cutlery Trial Balance August 31, 2017 Cr Account Cash Accounts Receivable Prepaid Insurance Furniture Dr $4,950 0 2,400 2,000 31,000 $14,450 500 26,000 500 Store Equipment Accounts Payable Unearned Service Revenue Joanne, Capital Joanne, Withdrawal Service Revenue Wages Expense Rent Expense Hydro expense Totals 3,800 250 3,200 450 $44,750 $44,750 The following additional information is available for the month just ended: a. Depreciation of $100 per month will be taken on the furniture b. It is estimated that the store equipment will have a $1,000 value at the end of its estimated five year (or 60 month) useful life. Joanne will record a full month of depreciation for August. c. It was determined that the balance in unearned service revenue at August 31 should be $420 d. The prepaid insurance represents six months of Insurance beginning August 1. e. On August 31, The Cutlery provided $ 130 of services to a client who will pay in September f. On August 31, Joanne received the business' August cell phone bill totalling $ 50. It will be paid in September. I Required 1. Prepare the adjusting entries needed on August 31, 2017, to record the previously unrecorded items. 5marks 2. Prepare T-Accounts for accounts affected by the adjusting entries. Post the adjusting entries to the T-Accounts 5 marks 3. Prepare an adjusted trial balance 10 marks