The trial balance of Lexington Inn Corporation at December 31, 2012, and the data needed for the month-end adjustments follow.

Adjustment data at December 31 follow:
a. Prepaid insurance still in force, $700.
b. Supplies used during the month, $500.
c. Depreciation for the month, $1,600.
d. Accrued salary expense, $400.
e. Unearned service revenue still unearned, $1,400.
Requirements
1. Journalize the adjusting entries.
2. The unadjusted balances have been entered for you in the general ledger accounts. Post the adjusting entries to the ledger accounts.
3. Prepare the adjusted trial balance.
4. Prepare the income statement, statement of retained earnings, and balance sheet for the business for the month ended December 31,2012.

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LEXINGTON INN CORPORATION Trial Balance December 31, 2012 Debit S 12,100 Credit Account Cash Accounts receivable 14,300 Prepaid insurance Supplies Building Accumulated depreciation Accounts payable Salary payable Unearned service revenue 2,300 1,100 411,000 $312,500 1,950 2,400 Common stock 108,000 Retained carnings 6,740 Dividends 2,860 Service revenue 15,600 Salary expense 2,700 Insurance expense Depreciation expense Advertising expense 830 Supplies expense $447,190 $447,190 Total