Consider the unadjusted trial balance of Lady, Inc., at July 31, 2012, and the related month-end adjustment data.

Adjustment data at July 31, 2012:
a. Accrued service revenue at July 31, $1,700.
b. Prepaid rent expired during the month. The unadjusted prepaid balance of $3,000 relates to the period July 1, 2012, through September, 2013.
c. Supplies used during July, $1,630.
d. Depreciation on furniture for the month. The estimated useful life of the furniture is five years.
e. Accrued salary expense at July 31 for Monday, Tuesday, and Wednesday. The five-day weekly payroll of $5,000 will be paid on Friday.
Requirements
1. Using Exhibit 3-9 as an example, prepare the adjusted trial balance of Lady, Inc., at July 31, 2012. 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 threestatements.

Transcribed Image Text:

Lady, Inc. Trial Balance Work Sheet July 31, 2012 Adjusted Trial Balance Trial Balance Adjustments Debit Credit Debit Credit Debit Credit Account Cash Accounts receivable Prepaid rent Supplies Furniture Accumulated depreciation Accounts payable Salary payable Common stock Retained earnings Dividends Service revenue Salary expense Rent expense Utilities expense Depreciation expense Supplies expense Total 8,800 1,600 3,000 2,100 90,000 3,000 3,200 14,000 75,060 3,900 17,000 2,400 460 112,260 112,260