The data necessary to adjust Socket Realty accounts from Problem 4-3A as of June 30, 2007, are as follows:

a. Prepaid insurance expired during June, $280.

b. Office supplies on hand at June 30, $580.

c. Depreciation on office equipment, $160.

d. Unearned fees earned during June, $480.

e. Accrued fees as of June 30, $960.

f. Accrued salary and commissions as of June 30, $560.

Instructions

1. Journalize the necessary adjusting entries for June.

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 June 30.

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

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

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

7. (Appendix) Prepare a statement of cash flows for June. Note that the June 16 payment on account of $640 was for a May purchase of supplies on account.

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