Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver

Exercise 6

Prepare an adjusted trial balance and financial statements
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.
b. One-fifth of the prepaid rent expired during the month.
c. Supplies on hand at June 30, $700.
d. Depreciation on automobile for the month, $1,400.
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 3-8 as an example, and prepare the adjusted trial balance of Reliable Limo Service Company at June 30, 2012, Key each adjusting entry by letter.
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