The unadjusted trial balance of Princess, Inc., at January 31, 20X2, and the related month-end adjustment data follow.

Adjustment data:
a. Accrued service revenue at January 31, $2,000.
b. Prepaid rent expired during the month. The unadjusted prepaid balance of $3,000 relates to the period January through March.
c. Supplies used during January, $2,000.
d. Depreciation on furniture for the month. The estimated useful life of the furniture is 3 years.
e. Accrued salary expense at January 31 for Monday, Tuesday, and Wednesday. The 5-day weekly payroll of $5,000 will be paid on Friday, February 2.
Required
1. Using Exhibit 3-9, page 145, as an example, prepare the adjusted trial balance of Princess, Inc., at January 31, 20X2. Key each adjusting entry by letter.
2. Prepare the monthly income statement, the statement of retained earnings, and the classified balance sheet. Draw arrows linking the three financial statements.

Transcribed Image Text:

Princess, Inc. Trial Balance January 31, 20X2 Accounts receivable Prepaid rent Supplies Furniture Accumulated depreciation Accounts payable Salary payable $8,000 10,000 3,000 2,000 36,000 3,000 10,000 26,000 13,000 Common stock Retained earnings (December 31,20X1). Dividends Service revenue 4,000 14,000 Rent expense Utilities expense Depreciation expense Supplies expense 1,000 $66,000 $66,000