The data necessary to adjust Gypsum Realty accounts from Alternate Problem 4-3B as of April 30, 2007, are as follows:

a. Prepaid insurance expired during April, $500.

b. Office supplies on hand at April 30, $1,750.

c. Depreciation on office equipment, $250.

d. Unearned fees earned during April, $1,000.

e. Accrued fees as of April 30, $2,800.

f. Accrued salary and commissions as of April 30, $1,500.

Instructions

1. Journalize the necessary adjusting entries for April.

2. Post the adjusting entries to T accounts. Identify each adjusting entry as “Adjusting.” For those accounts that were adjusted, determine an adjusted balance.

3. Prepare an adjusted trial balance as of April 30.

4. Prepare an income statement, a retained earnings statement, and a classified balance sheet.

5. Journalize and post the closing entries for April. Identify each entry as “Closing.” Determine post-closing balances.

6. Prepare a post-closing trial balance as of April 30, 2007.

7. (Appendix) Prepare a statement of cash flows for April. Note that the April 17 payment on account of $1,800 was for a March purchase of supplies on account.

8. (Appendix) Reconcile net income with net cash flows from operations for April.