The unadjusted trial balance of Solar Energy Consulting at July 31, 2007, and the related month-end adjustment data follow.

Adjustment data:

a. Accrued service revenue at July \(31, \$ 2,000\),

b. Prepaid rent expired during the month, \(\$ 1,000\).

c. Supplies on hand at July \(31, \$ 400\).

d. Depreciation on equipment for the month, \(\$ 300\).

e. Accrued salary expense at July 31 for one day only. The five-day weekly payroll is \(\$ 1,000\).

Requirements 

1. Using Exhibit 3-10 as an example, write the trial balance on a work sheet and prepare the adjusted trial balance of Solar Energy Consulting at July 31, 2007. Key each adjusting entry by letter.

2. Prepare the income statement and the statement of owner's equity for the month ended July 31, 2007, and the balance sheet at that date. Draw arrows linking the three statements.

Exhibit 3-10

Transcribed Image Text:

SOLAR ENERGY CONSULTING Trial Balance July 31, 2007 Account Title Cash Accounts receivable Prepaid rent Supplies Equipment Debit Balance Credit $ 8,900 11,600 4,000 800 28,800 Accumulated depreciation Accounts payable $ 3,500 3,400 Salary payable Spike Martin, capital 39,100 Spike Martin, withdrawals 4,000 Service revenue 15,000 Salary expense 2,400 Rent expense Utilities expense 500 Depreciation expense Supplies expense Total $61,000 $61,000