Consider the unadjusted trial balance of Kings, Inc., at August 31, 2010, and the related month-end adjustment data.

Adjustment data at August 31, 2010 include the following:
a. Accrued advertising revenue at August 31, $2,000
b. Prepaid rent expired during the month. The unadjusted prepaid balance of $2,400 relates to the period August 2010 through October 2010.
c. Supplies used during August, $1,820
d. Depreciation on furniture for the month. The furniture s expected useful life is five years.
e. Accrued salary expense at August 31 for Monday, Tuesday, and Wednesday. The five-day weekly payroll is $5,200 and will be paid on Friday.

Requirements
1. Using Exhibit as an example, prepare the adjusted trial balance of Kings, Inc., at August 31, 2010. Key each adjusting entry by letter.
2. Prepare the monthly income statement, the statement of retained earnings, and the classified balance sheet. Draw arrows linking the threestatements.

Transcribed Image Text:

Kings, Inc. Trial Balance Work Sheet August 31, 2010 Trial Balance Adjustments Adjusted Trial Balance Account Debit Credit Debit Credit Debit Credit Cash...9,200 Accounts receivable..1,500 Prepaid rent....2,400 Supplies2,200 Furniture... Accumulated depreciation Accounts payabl. Salary payable. Common stock.. Retained earnings. Dividends..3,600 3,900 | 3,500 北 15,000 71,020 10,000 Salary expense....3,000 Rent expense Utilities expense. Depreciation expense … 520 lotal... . 103,420 103,420