The unadjusted trial balance of LaBarbara Data at December 31, 2014, appears below. Adjustments had been made until November, but no adjustments for December have been made.

Adjustment data:
a. Accrued consulting revenue at December 31, $3,800.
b. The prepaid balance of $12,000 represented one year of rent. Four months of prepaid rent have been used.
c. Supplies remaining on hand at December 31, $900.
d. The estimated useful life of the furniture is 10 years, it will have no value at the end of the 10 years, and the straight-line method of amortization is used. Amortization expense had only been taken for the first 11 months.
e. Accrued salaries expense at December 31 for three days. The five-day weekly payroll is $6,000.
Required
1. Prepare the adjusted trial balance of LaBarbara Data at December 31, 2014. Key each adjusting entry by letter.
2. Prepare the income statement and the statement of owner's equity for the year ended December 31, 2014, and the balance sheet at December 31, 2014. Draw the arrows linking the three financial statements, or write a short description of how they are linked.

Transcribed Image Text:

LABARBARA DATA Unadjusted Trial Balance December 31, 2014 $ 24,200 Cash Accounts receivable 38,500 Prepaid rent 12,000 Supplies 2,400 Furniture 72,000 $ 13,800 Accumulated amortization-furniture Accounts payable 18,400 Salaries payable J. LaBarbara, capital J. LaBarbara, withdrawals 125,000 46,000 Consulting revenue 121,500 32,000 Salaries expense Rent expense 33,000 Utilities expense 12,000 Amortization expense-furniture 6,600 Supplies expense Total $278,700 $278,700