P3-46B Prepare an adjusted trial balance and financial statements [45–60 min]
Consider the unadjusted trial balance of Star Limo Service Company at September 30,
2012, and the related month-end adjustment data.
| STAR LIMO SERVICE COMPANY | |||
| Trial Balance | |||
| 30-Sep-12 | |||
| Cash | $6,800 | ||
| Accounts receivable | 1,400 | ||
| Prepaid rent | 5,000 | ||
| Supplies | 1,200 | ||
| Automobile | 72,000 | ||
| Accumulated depreciation | 3,800 | ||
| Accounts payable | 3,600 | ||
| Salary payable | |||
| Simmons, capital | 75,000 | ||
| Simmons, drawing | 3,700 | ||
| Service revenue | 9,700 | ||
| Salary expense | 1,400 | ||
| Rent expense | |||
| Fuel expense | 600 | ||
| Depreciation expense | |||
| Supplies expense | |||
| Total | 92,100 | 92,100 | |
a. Accrued service revenue at September 30, $1,800.
b. One-fifth of the prepaid rent expired during the month.
c. Supplies on hand at September 30, $800.
d. Depreciation on automobile for the month, $1,000.
e. Accrued salary expense at September 30 for one day only.
f. The five-day weekly payroll is $1,200.
Requirements
1. Write the trial balance on a worksheet, using Exhibit 3-8 as an example, and prepare
the adjusted trial balance of Star Limo Service at September 30, 2012. Key
each adjusting entry by letter.
2. Prepare the income statement and the statement of owner’s equity for the month
ended September 30, 2012, and the balance sheet at that date.
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