Interpreting unadjusted and adjusted trial balances, and preparing financial statements LO C3, A1, P1, P2, P3

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.

	Unadjusted Trial Balance					Adjusted Trial Balance
Cash	$	114,720				$	114,720
Accounts receivable		8,000					24,500
Office supplies		18,400					3,000
Prepaid insurance		6,340					3,360
Office equipment		86,000					86,000
Accum. Depreciation—Office equip.			$	25,000				$	32,000
Accounts payable				8,100					14,000
Interest payable				0					2,500
Salaries payable				0					15,000
Unearned consulting fees				28,000					18,000
Long-term notes payable				50,000					50,000
J. Logan, Capital				56,000					56,000
J. Logan, Withdrawals		5,000					5,000
Consulting fees earned				167,000					193,500
Depreciation expense—Office equip.		0					7,000
Salaries expense		67,240					82,240
Interest expense		1,320					3,820
Insurance expense		0					2,980
Rent expense		14,580					14,580
Office supplies expense		0					15,400
Advertising expense		12,500					18,400
Totals	$	334,100	$	334,100		$	381,000	$	381,000

Required:
1.	Analyze the differences between the unadjusted and adjusted trial balances to determine the adjustments that likely were made. Show the results of your analysis by entering these adjustment amounts in the cells provided.

      

2(a-1)	Prepare JKL Company's income statement and for the year ended July 31, 2013.

2(a-2)	Prepare JKL Company’s statement of owner’s equity for the year ended July 31, 2013. Note: J. Logan, Capital at July 31, 2012, was $56,000, and the current-year withdrawals were $5,000.

2(b)	Prepare JKL Company’s balance sheet as of July 31, 2013.

Answer rating: 100% (QA)

Solution JKL Company Adjustments made Account Unadjusted Trial Balance Adjustments Adjusted Trial Ba... View the full answer