Gonzales Upholstery€™s trial balance at the end of its fiscal year follows.

The following information is also available:
a. A study of the company€™s insurance policies shows that $380 is unexpired at the end of the year.
b. An inventory of upholstery supplies shows $1,040 on hand.
c. Estimated depreciation on the building for the year is $9,800.
d. Accrued interest on the mortgage payable is $960.
e. On September 1, the company signed a contract, effective immediately, with County Community Bank to repair and reupholster office furniture, for a fixed monthly charge of $400. The bank paid for four months€™ service in advance.
f. Sales and delivery wages are paid on Saturday. The weekly payroll is $1,530. September 30 falls on a Thursday, and the company has a six-day pay week.

REQUIREDAll 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 followingformat:

Transcribed Image Text:

Balance Amount of Balance Income Amount of Balance Sheet Adjustment After Statement AdjustmentAfter Account Adjustment Account Adjustment