(L. OBJ. 5, 6) Prepare an adjusted trial balance and financial statements. [45-60 min]...

(L. OBJ. 5, 6) Prepare an adjusted trial balance and financial statements. [45-60 min]

Consider the unadjusted trial balance of In Style Limo Service Company at March 31, 2012, and the related month-end adjustment data.

Adjustment data at March 31, 2012:

a. Accrued service revenue at March 31, $1,600

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

c. Supplies on hand at March 31, $1,100

d. Depreciation on automobile for the month, $1,200

c. Accrued salary expense at March 31 for one day only. The five-day weekly payroll is $1,400.

Requirement

1. Write the trial balance on a work sheet, using Exhibit 3-9 as an example, and prepare the adjusted trial balance of In Style Limo Service Company at March 31, 2012. Key each adjusting entry by letter.

2. Prepare the income statement and the statement of owner’s equity for the month ended March 31, 2012, and the balance sheet at that date.