The trial balance of Stone Environmental Services at October 31, 2014, is shown on the next page.

The data needed for the month-end adjustments are as follows:

a. Unearned consulting revenue that still had not been earned at October 31, $22,050.

b. Rent still prepaid at October 31, $6,000.

c. Supplies used during the month, $3,465.

d. Amortization on furniture for the month, $11,125.

e. Amortization on building for the month, $1,600.

f. Accrued salary expense at October 31, $4,395.

Required

1. Open ledgers for the accounts listed in the trial balance, inserting their October 31 unadjusted balances. Also open the Income Summary account (account #340). Date the balances of the following accounts October 1: Prepaid Rent, Supplies, Furniture, Accumulated Amortization-Furniture, Building, Accumulated Amortization- Building, Unearned Consulting Revenue, and K. Stone, Capital.

2. Write the trial balance on a work sheet and complete the work sheet of Stone Environmental Services for the month ended October 31, 2014.

3. Using the completed work sheet, prepare the income statement, the statement of owner's equity, and the classified balance sheet in account format.

4. Using the work-sheet data, journalize and post the adjusting and closing entries, including explanations. Use dates and posting references. Use 12 as the number of the journal page.

5. Prepare a post closing trial balance.

Transcribed Image Text:

STONE ENVIRONMENTAL SERVICES Trial Balance Otober 31, 2014 Acct. $ 32,050 110 Cash 63,895 120 Accounts receivable 130 Prepaid rent 9,900 140 Supplies 3,780 140,735 150 Furniture $ 25,300 151 Accumulated amortization-furniture 160 Building 307,350 161 Accumulated amortization-building 49,450 76,000 180 Land 210 Accounts payable 32,805 220 Salary payable 230 Unearned consulting revenue 23,850 300 K. Stone, capital 476,205 17,550 330 K. Stone, withdrawals 56,520 400 Consulting revenue 510 Salary expense 8,280 520 Rent expense 530 Utilities expense 4,590 540 Amortization expense-furniture 550 Amortization expense-building 570 Supplies expense Total $664,130 $664,130