Trial Balance Data:

• Cash: $40,000
• Supplies: $5,000
• Accounts Receivable: $30,000
• Unearned Revenue: $10,000
• Capital: $65,000

Adjustments:

• Supplies used: $1,000
• Unearned revenue earned: $2,000

Requirements:

1. Prepare the adjusted trial balance.
2. Ensure all adjustments are accurately reflected.
3. Explain the purpose of making these adjustments.