Adjustment data at August 31, 20x6 include the following: a. Accrued service revenue at August 31, $2,000.

b. Prepaid rent expired during the month. The unadjusted prepaid balance of $2,400 relates to the period August 20x6 through October 20x6.

c. Supplies used during August, $1,820.

d. Depreciation on furniture for the month. The furnitures expected useful life is five years.

e. Accrued salary expense at August 31 for Monday, Tuesday, and Wednesday. The fiveday weekly payroll is $5,200 and will be paid on Friday.

Requirements

1. Prepare the adjusting entries for items (a) to (e).

2. Prepared an Income statement for the month ended 31 August 20x6.

3. Prepared a Statement of changes in equity for the month ended 31 August 20x6.

4. Prepared a Statement of financial position as at 31 August 20x6.

Question Two The unadjusted trial balance of Kings, Inc. at August 31, 20x6 was as follows: Kings, Inc. Trial Balance as at August 31, 20x6 Dr Cr s Cash 9,200 Accounts receivable 1,500 Prepaid rent 2,400 Supplies 2,200 Furniture 81,000 Accumulated depreciation - furniture 3,900 Accounts payable 3,500 Share capital 15,000 Retained earnings 71,020 Dividends 3,600 Service revenue 10,000 Salary expense 3,000 Utilities expense 520 103,420 103,420