Tutorial 4. Adjusting Accounts - In class exercise The Fly High Travel Services trial balance before adjustment on December 31 is as follows: Fly High Travel Services Trial balance December 31, 2012 No Account titles Debit Credit 101 Cash $ 10,000 126 Supplies 1,200 130 Prepaid Insurance 2,400 154 Equipment 48,000 202 Notes Payable $ 2,600 220 Uneared Revenue 7,000 311 Common Stock 52,000 332 Dividends 2,000 430 Service Revenue 11,400 510 Salaries Expense 3,000 650 Rent Expense 6,400 $73,000 $73,000 In addition to those accounts listed in the trial balance, the chart of accounts for Fly high travel services contains the following accounts and accounts number: No. 120 Account receivable, No.155 Accumulated Depreciation - equipment, No. 212 Salaries Payable, No. 630 Supplies Expense, No. 660 Insurance Expense, No. 680 Depreciation Expense - Equipment. Then you are provided with the following information for adjustment entries: 1. The supplies on hand total $800 2. The annual depreciation of the equipment is estimated to be $2,400 3. The prepaid insurance is a 2-year fire policy 4. $7,000 was paid for services at the beginning of December. However, half of the deposit was earned in December and half will be earned in January 5. Revenue earned but not accrued, totaled $8,500 6. Salaries of $900 are accrued and unpaid on December 31 Instructions: A. Journalize the adjusting entries on December 31, 2012 B. Prepare a ledger. Enter the trial balance amounts and post the adjusting entries (use J2 as the posting reference). C. Prepare an adjusted trial balance on December 31, 2012 D. Prepare an income statement and a retained earnings statement for the month ended December and a balance sheet on December 31. (additional)