At the end of the first three months of operation, the trial balance of Metropolitan Answering Service appears as shown below.

Oscar Rienzo, the owner of Metropolitan, has hired an accountant to prepare financial statements to determine how well the company is doing after three months.

Upon examining the accounting records, the accountant finds the following items of interest:

a. An inventory of office supplies reveals supplies on hand of $133.

b. The Prepaid Rent account includes the rent for the first three months plus a deposit for April's rent.

c. Depreciation on the equipment for the first three months is $208.

d. The balance of the Unearned Answering Service Revenue account represents

a 12-month service contract paid in advance on February 1.

e. On March 31, accrued wages total $80.

Metropolitan Answering Service

Trial Balance

March 31, 20x8

Cash ................................................ $ 3,482

Accounts Receivable ............................. 4,236

Office Supplies ................................... 903

Prepaid Rent ...................................... 800

Equipment ........................................ 4,700

Accounts Payable ....................................................... $ 2,673

Unearned Answering Service Revenue .............................. 888

O. Rienzo, Capital ...................................................... 5,933

O. Rienzo, Withdrawals ........................... 2,130

Answering Service Revenue ....................... 9,002

Wages Expense ...................................... 1,900

Office Cleaning Expense........................... 345

......................................................... $18,496 ............ $18,496

Required

All adjustments affect one balance sheet account and one income statement account. For each of the above situations, show the accounts affected, the amount of the adjustment (using a + or - to indicate an increase or decrease), and the balance of the account after the adjustment in the following format:

Transcribed Image Text:

Balance Amount of Income Amount olf Sheet Adjustment Balance after Statement Adjustment Balance after Account + or Adjustment Account orAdjustment