Prepare an adjusted trial balance and financial statements. [45-60 min]Consider the unadju...

Prepare an adjusted trial balance and financial statements. [45-60 min]

Consider the unadjusted trial balance of Reliable Limo Service Company at June 30, 2012, and the related month-end adjustment data.

Adjustment data at June 30 follow:

a. Accrued service revenue at June 30, $1,500.

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b. One-fifth of the prepaid rent expired during the month.

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c. Supplies on hand at June 30, $700.

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d. Depreciation on automobile for the month, $1,400.

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e. Accrued salary expense at June 30 for one day only. The five-day weekly payroll is $1,500.

Requirements

1. Write the trial balance on a worksheet, using Exhibit as an example, and prepare the adjusted trial balance of Reliable Limo Service Company at June 30, 2012. Key each adjusting entry by letter.

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2. Prepare the income statement and the statement of retained earnings for the month ended June 30, 2012, and the balance sheet at that date.

Preparation of Adjusted Trial Balance