The trial balance of Lexington Inn Corporation at December 31, 2012, and the data needed for the

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The trial balance of Lexington Inn Corporation at December 31, 2012, and the data needed for the month-end adjustments follow.


LEXINGTON INN CORPORATION Trial Balance December 31, 2012 Debit S 12,100 Credit Account Cash Accounts receivable 14,300


Adjustment data at December 31 follow:
a. Prepaid insurance still in force, $700.
b. Supplies used during the month, $500.
c. Depreciation for the month, $1,600.
d. Accrued salary expense, $400.
e. Unearned service revenue still unearned, $1,400.
Requirements
1. Journalize the adjusting entries.
2. The unadjusted balances have been entered for you in the general ledger accounts. Post the adjusting entries to the ledger accounts.
3. Prepare the adjusted trial balance.
4. Prepare the income statement, statement of retained earnings, and balance sheet for the business for the month ended December 31,2012.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Financial and Managerial Accounting

ISBN: 978-0132497978

3rd Edition

Authors: Horngren, Harrison, Oliver

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