A six-column table for JKL Company follows. The first two columns contain the unadjusted trial balance for the company as of July 31, 2013. The last two columns contain the adjusted trial balance as of the same date.

Required

Analysis Component

1. Analyze the differences between the unadjusted and adjusted trial balances to determine the eight adjustments that likely were made. Show the results of your analysis by inserting these adjustment amounts in the table’s two middle columns. Label each adjustment with a letter a through h and provide a short description of it at the bottom of the table.

Preparation Component

2. Use the information in the adjusted trial balance to prepare the company’s (a) income statement and its statement of owner’s equity for the year ended July 31, 2013 (J. Logan, Capital at July 31, 2012, was $40,000, and the current-year withdrawals were $5,000), and (b) the balance sheet as of July 31,2013.

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Unadjusted Trial Balance Adjusted Trial Balance Adjustments $ 34,000 22,000 2,000 2,960 84,000 Cash...m.. Accounts receivable 34,000 4,000 6,000 8,540 84,000 Prepaid insurance Office equip Accum. depreciation- ment $ 14,000 9,100 20,000 10,000 ,000 7,000 15,000 52,000 40,000 Office equip. .. Accounts payable Salaries payable . Unearned consulting fees... Long-term notes payable .. J. Logan, Capital... 8,000 52,000 40,000 5,000 5,000 Consulting fees earned Depreciation expense- 123,240 134,240 Office equip.-... Salaries expense. Interest expense. Insurance expense-.o- Rent expense . 6,000 74,000 2,200 5,580 14,500 14,000 13,000 67,000 I,200 14,500 12,100 Advertising expense Totals...$256,340 $256,340 $279,240 $279,240