Assignment 4

Adjustment data at August 31, 20X6, include the following: a. Accrued advertising revenue at August 31, 2,200 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, 1,900 d. Depreciation on furniture for the month. The furniture's expected useful life is five years. e. Accrued salary expense at August 31 for Monday, Tuesday, and Wednesday. The five- day weekly payroll is 5,500 and will be paid on Friday. Requirements 1. Using Exhibit 3-9 as an example, prepare the adjusted trial balance of Glasgow, Inc., at August 31, 20X6. Key each adjusting entry by letter. 2. Prepare the monthly Income Statement, the statement of changes in equity, and the classi- fied Balance Sheet. Draw arrows linking the three statements.