1. Using the format presented in Problem 3-1 IB, complete the adjusted trial balance by including the adjusting entries prepared in Problem 3-1 IB.
B52 Skate Training prepares adjustments annually and showed the following on its June 30, 2014, year-end:

2. Prepare an income statement, a statement of changes in equity, and a balance sheet based on the adjusted trial balance completed in Part 1. Assume that the owner, Ben Gibson, made an investment during the year of $20,000).
Analysis Component: Assume that total liabilities reported at June 30, 2013, were $90,000. Determine what equity and total assets were on that date and comment on the change in the financial position from 2013 to 2014.

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B52 Skate Training Unadjusted Trial Balance June 30, 2014 Unadjusted Trial Balance Adjusted Trial Balance Adjustments Account 7 Cash 8 Accounts receivable 9 Repair supplies 10 Prepaid arena rental 11 Skate equipment 12 Accumulated depreciation, $ 112,000 28,000 2,800 182,000 428,000 $ 164,000 5,400 19,600 160,000 451,400 skate equipment 13 Accounts payable 14 Unearned training fees 15 Notes payable 16 Ben Gibson, capital 17 Ben Gibson, withdrawals 18 Training fees earned 19 Salaries expense 20 Arena rental expense 21 Other expenses 22 Totals 72,000 550,000 350,000 168,000 7,600 $1,350,400 $1,350,400