The trial balances before and after adjustment for the Apachi Company at the end of its fiscal year are presented below.

\section*{Instructions}
Prepare the adjusting entries that were made.
Prepare financial statements from adjusted trial balance. (SO \(5,6,7\) )
Distinguish between cash and accrual basis of accounting. (50 8)

Transcribed Image Text:

APACHI COMPANY Trial Balance August 31, 1996 Before Adjustment After Adjustment Dr. Cr. Dr. Cr. Cash Accounts Receivable Office Supplies Prepaid Insurance Office Equipment Accumulated Depreciation-Office Equipment Accounts Payable Salaries Payable $10,400 8,800 $10,400 9,500 2,300 700 4,000 2,500 14,000 14,000 $ 3,600 $ 4,800 5,800 5,800 -0- 1,000 Unearned Rent Revenue Common Stock Retained Earnings Fees Earned 1,500 700 10,000 10,000 5,600 5,600 34,000 34,700 Rent Revenue Salaries Expense 11,000 11,800 17,000 18,000 Office Supplies Expense -0- 1,600 Rent Expense 15,000 15,000 Insurance Expense -0- 1,500 Depreciation Expense -0- 1,200 $71,500 $71,500 $74,400 $74,400