Chapter 3, Problem 5R

The trial balance of Sports Connection at June 30, 2013, the end of the current fiscal year, is as follows:

Adjustment information is as follows:

1. a. Supplies on hand as of June 30, 2013, $450.
2. b. Insurance premiums that expired during the year, $2,420.
3. c. Depreciation on equipment during the year, $1,500.
4. d. Included in the rent expense of $30,000 is $1,200 that is prepaid for July 2013.
5. e. Salaries accrued but not paid at June 30, 2013, $1,440.
6. f. Merchandise inventory on June 30, 2013, $68,864.

In the space provided below, prepare an income statement, a capital statement (statement of ownerʼs equity), and a balance sheet. Use the corrected worksheet (P2WORK4) as a basis for your work. Assume no additional owner investments were made during the year.