Required information

Problem 3-4A Interpreting unadjusted and adjusted trial balances, and preparing financial statements LO P1, P2, P3, P4, P5, P6

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A six-column table for JKL Company follows. The first two columns contain the unadjusted trial balance for the company as of July 31. The last two columns contain the adjusted trial balance as of the same date.

Unadjusted

Trial Balance Adjusted

Trial Balance

Cash $ 113,530 $ 113,530

Accounts receivable 10,000 19,000

Office supplies 17,200 8,000

Prepaid insurance 7,540 3,360

Office equipment 86,000 86,000

Accum. DepreciationOffice equip. $ 24,000 $ 34,000

Accounts payable 10,100 18,000

Interest payable 0 3,000

Salaries payable 0 7,000

Unearned consulting fees 26,000 17,000

Long-term notes payable 56,000 56,000

J. Logan, Capital 54,000 54,000

J. Logan, Withdrawals 9,500 9,500

Consulting fees earned 169,000 187,000

Depreciation expenseOffice equip. 0 10,000

Salaries expense 67,060 74,060

Interest expense 1,280 4,280

Insurance expense 0 4,180

Rent expense 14,620 14,620

Office supplies expense 0 9,200

Advertising expense 12,370 20,270

Totals $ 339,100 $ 339,100 $ 376,000 $ 376,000

Problem 3-4A Part 1

Required:

1. Analyze the differences between the unadjusted