The unadjusted trial balance for Premier Pet Spa at September 30, 2021 is belowPremier Pet SpaTrial Balance (Unadjusted)09/30/20211210110651266127712891638 16710 201311 23613 30114 30315 40316 60017 65218 65520 66021 67722 68023 68424Account TitlesCashAccounts ReceivableSuppliesPrepaid AdvertisingPrepaid InsuranceEquipmentFurnitureAccounts PayableUnearned Service RevenueJ. Smith-CapitalJ. Smith-DrawsService RevenueAdvertising ExpenseOffice ExpenseRent ExpenseRepairs and Maintenance ExpenseSupplies ExpenseUtilities ExpenseWages ExpenseTotalsDrTrial Balance5.9461.1751,5002004,80014,5002,8003,5004001,2377,2001701,9506973,90049,975Cr.12356798750 101,200 1131,000 131417,025 151617182021222349,975 24Instructions1. Prepare a 10-column worksheet. Show the adjustments (a) through (g).Do not modify the top portion of the Unadjusted Trial Balance section of theworksheet. Add the adjustments-related accounts that you need below theTotals line.2. Prepare an income statement for the three months ended September 30,2021.3. Prepare a statement of owner's equity for the three months ended September30, 2021.4. Prepare a classified balance sheet as of September 30, 2021. Use theinformation in Chapter 12 (pp. 396-397 and page 412). Additional Information:a. The September 30 count of supplies shows $1,700 still available.b. The balance in the Prepaid Insurance account represents a six-monthinsurance premium ($4,800) paid on 7/3/2021 for coverage effective7/1/2021.c. On 7/1/2021, Jane paid $7,200 for four months' worth of rent. At the time,she recorded the prepayment in the Rent Expense account.d. On 8/31/2021, Jane recorded a $2,000 advance from the Stanislaus CountySheriff K-9 unit in the Service Revenue account. As of 9/30/2021, Premier PetSpa must still provide $1,650 worth of service to Stanislaus County.c. The furniture (cost: $2,800) was placed in service on 7/1/2021. It is expected tohave a seven-year life and a $280 salvage value. The company uses thestraight-line depreciation method.f. The balance in the Equipment account includes the $1,500 custom groomingmachine that was purchased on September 30. Since that machine has notbeen placed in service yet, no depreciation will be taken on that piece ofequipment. The remaining equipment (cost: $13,000) was placed in serviceon 7/1/2021. It is expected to have a five-year life and a $1,300 salvagevalue. The company uses the straight-line depreciation method.g In September, Premier Pet Spa provided $250 worth of services that theModesto Police K-9 unit prepaid for on September 4. At the time of receipt,the $1,200 prepayment was recorded in a liability account.

As per the guidelines, in the case of multi-step questions, the solution to the first three-part has…

The unadjusted trial balance for Premier Pet Spa at September 30, 2021 is below Premier Pet Spa Trial Balance (Unadjusted) 09/30/2021 12366 5 6 7 9 8 101 106 126 127 128 163 167 201 236 10 11 13 301 14 303 15 403 16 600 17 652 18 655 20 660 21 677 22 680 23 684 24 Account Titles Cash Accounts Receivable Supplies Prepaid Advertising Prepaid Insurance Equipment Furniture Accounts Payable Unearned Service Revenue J. Smith-Capital J. Smith-Draws Service Revenue Advertising Expense Office Expense Rent Expense Repairs and Maintenance Expense Supplies Expense Utilities Expense Wages Expense Totals Dr Trial Balance 5,946 1,175 1,500 200 4,800 14,500 2,800 3,500 400 1,237 7,200 170 1,950 697 3,900 49,975 Cr. 1 5 9 8 750 10 1,200 11 31,000 13 14 17,025 15 16 17 18 20 21 22 23 49.975 24 Instructions 1. Prepare a 10-column worksheet. Show the adjustments (a) through (g). Do not modify the top portion of the Unadjusted Trial Balance section of the worksheet. Add the adjustments-related accounts that you need below the Totals line. 2. Prepare an income statement for the three months ended September 30, 2021. 3. Prepare a statement of owner's equity for the three months ended September 30, 2021. 4. Prepare a classified balance sheet as of September 30, 2021. Use the information in Chapter 12 (pp. 396-397 and page 412).

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter10: Financial Statements And Reports

Section: Chapter Questions

Problem 4.1C