Chapter 4, Problem 4.2E

Identifying Adjustments and Preparing Financial Statements from a Trial Balance

FedEx Corporation reported its balance sheet at May 31, 2013. Assume the following alphabetically listed accounts were included in its trial balance immediately prior to preparing the financial statements.

	Debit	Credit
Accounts Payable		$ 2,900
Accounts Receivable	$ 5,000
Accumulated Depreciation—Equipment		19,600
Cash	4.900
Common Stock		2,700
Depreciation Expense	2,400
Dividends	170
Equipment	38,100
Goodwill	3,800
Income Tax Expense	900
Income Tax Payable		900
Interest Expense	100
Interest Receivable	10
Interest Revenue		20
Notes Payable (long-term)		7,700
Notes Payable (short-term)		300
Office Expenses	7,540
Prepaid Rent	850
Rent Expense	2,500
Repairs and Maintenance Expense	1.900
Retained Earnings		17,100
Salaries and Wages Expense	16,600
Salaries and Wages Payable		1,700
Service Revenue		44,200
Supplies	450
Transportation Expense	11.900
	$97,120	$97,120

Required:

1. 1. Based on the trial balance, provide the name of the account that would accompany (a) Prepaid Rent and (b) Depreciation Expense in deferral adjustments at May 31.
2. 2. Based on the trial balance, provide the name of the account that would accompany (a) Interest Revenue and (b) Salaries and Wage Expense in accrual adjustments at May 31.
3. 3. Prepare an income statement, statement of retained earnings, and classified balance sheet for the year ended May 31, 2013.