Wysocki Wheels began operations on March 1 to provide automotive wheel alignment and balancing services. On March 31 the unadjusted trial balance follows.

The following information is also available.
1. The balance in Prepaid Rent was the amount paid on March 1 to cover the first six months' rent.
2. Supplies available on March 31 amounted to \(\$ 1,360\).
3. Equipment has an estimated life of nine years (or 108 months).
4. Unpaid and unrecorded wages at March 31 were \(\$ 1,560\).
5. Utility services used during March were estimated at \(\$ 390\); a bill is expected early in April.
6. The balance in Unearned Service Revenue was the amount received on March 1 from a car dealer to cover alignment and balancing services on cars sold by the dealer in March and April. Wysocki Wheels agreed to provide the services at a fixed fee of \(\$ 500\) each month.
\section*{Required}

a. Prepare its accounting adjustments at March 31 in journal entry form.

b. Set up T-accounts and post the accounting adjustments to them.

c. Prepare its income statement for March and its balance sheet at March 31.

d. Prepare entries to close its temporary accounts in journal entry form. Post the closing entries to the T-accounts.

Transcribed Image Text:

WYSOCKI WHEELS Unadjusted Trial Balance March 31 Cash..... Accounts receivable.. Prepaid rent Supplies.... Equipment Accounts payable... Unearned service revenue. Common stock.. Service revenue Wages expense Debit $ 2,900 3,820 $55,270 Credit 4,770 3,700 36,180 3,900 38,400 $ 3,510 1,000 $55,270 12,360