The following trial balance and additional data are for Florida Time-Share Property

Management Company:

A) Insurance expense for the year, $ 3,840.

B) Rent expense for the year, $ 19,200.

C) Depreciation expense: office equipment, $ 2,880; and automobiles, $ 12,800.

D) Salaries earned but unpaid at December 31, $ 26,640.

E) Supplies on hand at December 31, $ 1,000.

F) The unearned management fees were received and recorded on November 1. The

advance payment covered six months management of an apartment building.

Instructions

1. Prepare the adjusting journal entries and post. 2. Prepare an adjusted trial balance.

3. Prepare a statement of retained earnings.

4. Prepare a classified balance sheet.

Cash Prepaid Rent Prepaid Insurance Supplies on Hand Office Equipment Accumulated Depreciation Office Equipment Automobiles Accumulated Depreciation-Automobiles Accounts Payable Unearned Management Fees Capital Stock Retained Earnings, January 1, 2012 Dividends Commissions Revenue Management Fee Revenue Salaries Expense Advertising Expense Gas and Oil Expense Miscellaneous Expense Debits Credits $ 424,000 28,800 7,680 2,400 24,000 $ 5,760 64,000 16,000 2,880 12,480 360,000 120,640 28,000 260,000 19,200 199,840 2,400 14,240 1,600 $ 796,960 $ 796,960