Consider the unadjusted trial balance of Spateness, Inc., at December 31, 2016, and the related month-end adjustment data.

Adjustment data at December 31, 2016:
a. Accrued service revenue at December 31, $3,960.
b. Prepaid rent expired during the month. The unadjusted prepaid balance of $3,000 relates to the period December 1, 2016, through February 28, 2017.
c. Supplies used during December, $1,880.
d. Depreciation on furniture for the month. The estimated useful life of the furniture is five years.
e. Accrued salary expense at December 31 for Monday, Tuesday, and Wednesday. The five-day weekly payroll of $20,000 will be paid on Friday.
Requirements
1. Using Exhibit 3-9 as an example, prepare the adjusted trial balance of Spateness, Inc., at December 31, 2016. Key each adjusting entry by letter.
2. Prepare the single-step monthly income statement, the statement of retained earnings, and the classified balance sheet. Draw arrows linking the three statements.

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Spateness, Inc. Trial Balance Worksheet December 31, 2016 Trial Balance Adjustments iTAdjusted Trial Balance Debit Credit Debit Credit Debit Credit Account Cash Accounts receivable Prepaid rent Supplies Furniture Accumulated depreciation-furniture Accounts payable Salary payable Common stock Retained earnings Dividends Service revenue Salary expense Rent expense Utilities expense Depreciation expense-furniture Supplies expense Total 300 1,400 3,000 2,200 54,000 3,200 3,600 13,000 29,070 27,400 3,900 3,000 470 76,270 76,270