Chapter 3, Problem 4APSA

Problem 3-4A Interpreting unadjusted and adjusted trial balances, and preparing financial statements P1 P2 P3 P4 P5 P6

A six-column table for JK.L Company follows. The first two columns contain the unadjusted trial balance for the company as of July 31. The last two column contain the adjusted trial balance as of the same date
Required
Analysis Component
1. Analyze the differences between the unadjusted and adjusted trial balances to determine the eight adjustments that likely were made. Show the results of yow analysis by inserting these adjustment amounts in the table’s two middle columns. Label each adjustment with a letter a through h and provide a short description of each. Preparation Component
2.
Use the information in the adjusted trial balance to prepare the company’s (a) income statement and its statement of owner’s equity for the ye ended July 31 [Note. 3. Logan, Capital at July 31 of the prior year was $40,000, and the cwrent-year withdrawals were $5,000] and (b) the
balance sheet as of July 31.

Check (2) Net income. $4,960: Total assets. $124,960