A B D E F G J K Instructions: 1 2 3 1 This assignment is to be done individually. 4 5 6 7 2 The trial balances before and after adjustment for Lane Company at October 31, 2021, which is the end of its fiscal year, can be found on the TB tab. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3 Using the blue debit and credit columns (TB tab), enter the adjustments that would have been made to the accounts. 4 The blue item number column (TB tab) contains the number that correspond to the journal entries on the JE tab. 5 On the JEtab, prepare the adjusting entries that were made. Next to each entry, define the type of adjusting entry by selecting the appropriate type from the drop-down list. 6 Using the data on the TB tab, prepare the income statement as found on the Fin Stmts tab. 7 Using the data on the TB tab, prepare the statement of owner's equity as found on the Fin Stmts tab. The owner did not make any investments during the year. 8 Using the data on the TB tab, prepare the balance sheet as found on the Fin Stmts tab. Note that the company will make equal annual principal payments over the life of this 6 year 6% note. Both Interest and principal payments are made on October 1 of each year. 35 D E G E3-15 Adjusted 1 2 3 Lane Company Account Name Unadjusted Trial Balance at October 31, 2021 Adjusted Trial Balance for October 31, 2021 4 Adjustments Made 5 6 Credit Item # Debit Credit Credit 7 Debit 24,300 10.800 8 1 Debit 24,300 12,750 840 1,600 90,720 9 2 3 10 11 90.720 12 4 15.120 7.400 60,000 13 14 15 16 5 6 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated depreciation- Equipment Accounts Payable Notes Payable Salaries Payable Interest Payable Uneared Service Revenue E. Lane, capital E.Lane, drawings Service Revenue Depreciation expense Insurance expense Interest expense Rent expense Salaries expense Supplies expense Totals 30,240 7.400 60,000 2 200 300 1,100 14,960 17 7 14,960 8.000 8,000 158,740 159,590 18 19 20 21 22 23 24 25 26 27 28 4.800 3.300 36,000 74,200 4.100 256,220 15,120 3,200 3.600 36,000 76,400 3,260 275,790 256,220 275,790 1 Journal Entries 2 3 General Journal Account Description 4 Date Item # Dr Cr Type 5 6 31-Oct-21 1 7 8 9 31-Oct-21 2 10 11 31-Oct-21 3 12 13 14 15 31-Oct-21 4 16 17 18 31-Oct-21 5 19 20 21 31-Oct-21 6 22 23 24 31-Oct-21 7 25 26 27 Financial Statements 4 5 6 7 8 Lane Company Income Statement Year Ended October 31, 2021 10 11 12 Revenues Service Revenue Expenses Depreciation expense Insurance expense Interest expense Rent expense Salaries expense Supplies expense Total Expenses 14 15 16 1 18 19 20 23 Profit 23 24 Lane Company Statement of Owner's Equity Year Ended October 31, 2021 27 23 E. Lane, capital Add: 13 32 33 14 35 35 37 33 0000 Less: E. Lane, capital 10 41 Lane Company Balance Sheet October 31, 2021 41 es 46 42 ES So S 53 54 Assets Current Assets: Cash Accounts Receivable Supplies Prepaid Insurance Total Current Assets Property, Plant and Equipment Equipment Less Accumulated depreciation Total Property. Plant and Equipment Total Assets Liabilities and Owner's Equity Current Liabilities Accounts Payable Notes Payable-current portion Salaries Payable Interest Payable Uneared Service Revenue Total Current Liabilities Long-Term Liabilities Notes Payable Total Liabilities S2 S8 50 6: 63 60 71 72 73 7 75 Owner's Equity E. Lane, capital Total Liabilities and Owner's Equity