(L.OBJ. 1, 2) Preparing a work sheet and the financial statements [40-50 min] The trial...

(L.OBJ. 1, 2) Preparing a work sheet and the financial statements [40-50 min]

The trial balance work sheet and adjustment data of Kate’s Motors at June 30, 2010, follow:

Additional data at June 30, 2010:

a. Depreciation on equipment, $1,300

b. Accrued wage expense, $400

c. Supplies on hand, $400

d. Prepaid insurance expired during June, $300

e. Unearned service revenue earned during June, $4,600

f. Accrued service revenue, $600

Requirements

1. Complete Kate’s work sheet for June. Key adjusting entries by letter.

2. Prepare the income statement, the statement of owner’s equity, and the classified balance sheet in account form for the month ended June 30, 2010.