Trial Balance and Adjustments

Trial Balance Data:

• Cash: $20,000
• Accounts Receivable: $15,000
• Supplies: $5,000
• Accounts Payable: $8,000
• Capital: $32,000

Adjustments:

• Supplies expense: $1,500 (used)
• Accrued revenue: $2,000 (earned but not received)

Requirements:

1. Prepare the adjusted trial balance.
2. Ensure all adjustments are reflected accurately.
3. Explain the importance of these adjustments in financial reporting.