The unadjusted trial balance of The Rock Industries Ltd. at January 31, 2017, appears below.

Adjustment data:
a. Accrued service revenue at January 31, $2,000
b. Prepaid rent expired during the month. The unadjusted prepaid balance of $3,000 relates to the period January through March.
c. Supplies used during January, $2,000
d. Depreciation on furniture for the month. The estimated useful life of the furniture is three years.
e. Accrued salary expense at January 31 for Monday, Tuesday, and Wednesday. The five-day weekly payroll of $5,000 will be paid on Friday, February 2.
Requirements
1. Using Exhibit 3-4, page 126, as an example, prepare the adjusted trial balance of The Rock Industries Ltd. at January 31, 2017. Key each adjusting entry by letter.
2. Prepare the income statement, the statement of retained earnings, and the classified balance sheet. Draw arrows linking the three financial statements?

Transcribed Image Text:

The Rock Industries Ltd. Trial Balance January 31, 2017 2 Caslh 3 Accounts receivable 4 Prepaid rent 5 Supplies 6 Furniture 7 Accumulated depreciation 8 Accounts payable $ 8,000 10,000 3,000 2,000 36,000 $ 3,000 10,000 9 Sala 10 Share capital 11 Retained earnings (December 31, 2016) 12 Dividends 13 Service revenue 14 Salary expense 15 Rent expense 16 Utilities expense 17 「Depreciation expense 18 Supplies 19 Total 20 able 26,000 13,000 4,000 14,000 2,000 1,000 66,000 66,000