### Premier Pet Spa: Unadjusted Trial Balance as of September 30, 2021#### Premier Pet Spa**Trial Balance (Unadjusted)****09/30/2021**| Account Titles | Debit (Dr) | Credit (Cr) ||-------------------------------------|------------|-------------|| 101 Cash | 5,946 | || 106 Accounts Receivable | 1,175 | || 126 Supplies | 1,500 | || 127 Prepaid Advertising | 1,200 | || 128 Prepaid Insurance | 4,800 | || 163 Equipment | 14,500 | || 167 Furniture | 2,800 | || 201 Accounts Payable | | 750 || 236 Unearned Service Revenue | | 1,200 || 301 J. Smith-Capital | | 31,000 || 302 J. Smith-Draws | 3,500 | || 403 Service Revenue | | 17,025 || 610 Advertising Expense | 400 | || 652 Office Expense | 1,237 | || 655 Rent Expense | 7,200 | || 665 Repairs and Maintenance Expense | 170 | || 667 Supplies Expense | 1,950 | || 683 Utilities Expense | 697 | || 690 Wages Expense | 3,900 | || Totals | 49,975 | 49,975 |#### Instructions1. **Worksheet Preparation**: - 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. **Income Statement**: - Prepare an income statement for the three months ended September 30, 2021.3. **Statement of Owner's Equity**: - Prepare a statement of owner's equity for the three months ended September 30, 2021.4. **Classified ### 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-month insurance premium ($4,800) paid on 7/3/2021 for coverage effective 7/1/2021.**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 County Sheriff K-9 unit in the Service Revenue account. As of 9/30/2021, Premier Pet Spa must still provide $1,650 worth of service to Stanislaus County.**e.** The furniture (cost: $2,800) was placed in service on 7/1/2021. It is expected to have a seven-year life and a $280 salvage value. The company uses the straight-line depreciation method.**f.** The balance in the Equipment account includes the $1,500 custom grooming machine that was purchased on September 30. Since that machine has not been placed in service yet, no depreciation will be taken on that piece of equipment. The remaining equipment (cost: $13,000) was placed in service on 7/1/2021. It is expected to have a five-year life and a $1,300 salvage value. The company uses the straight-line depreciation method.**g.** In September, Premier Pet Spa provided $250 worth of services that the Modesto 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).

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q