Consider the unadjusted trial balance of WOW, Inc., at July 31, 2014, and the related month-end adjustment data.

Adjustment data at July 31, 2014:
a. Accrued service revenue at July 31, $3,950.
b. Prepaid rent expired during the month. The unadjusted prepaid balance of $3,000 relates to the period July 1, 2014, through September 30, 2014.
c. Supplies used during July, $1,630.
d. Depreciation on furniture for the month. The estimated useful life of the furniture is five years.
e. Accrued salary expense at July 31 for Monday, Tuesday, and Wednesday. The five-day weekly payroll of $15,000 will be paid on Friday.

Requirements
1. Using Exhibit 3-9 as an example, prepare the adjusted trial balance of WOW, Inc., at July 31, 2014. Key each adjusting entry by letter.
2. Prepare the single step monthly income statement, the statement of retained earnings, and the classified balance sheet. Draw arrows linking the threestatements.

Transcribed Image Text:

A1 WOW, Inc. Trlal Balance Worksheet July 31, 2014 al Balance Adjustments Adjusted Trial Balance Debit Credit Debit Credit Debit Credit Account Cash Accounts receivable Prepaid rent Supplies 9,500 1,600 3,000 2,100 90,000 8 Funiture Accumulated depreciation, furniture Accounts payable Salary payable Common stock 3,000 3,200 14,000 76,060 17,700 13 Retained earnings 3,900 400 460 Dividends 1 Service revenue Salary expense Rent expense Utilitles expense 3, 19 Depreciation expense 2 Suppliesxnse 2 Total 113,960113,960