ACCT504 Devry Case Study 1 (Part B): P3-77B Consider the unadjusted trial balance of Princess, Inc

ACCT504 Devry Case Study 1 (Part B) P3-77B (Learning Objectives 3, 4: Adjust the accounts; construct the financial statements)Consider the unadjusted trial balance of Princess, Inc., at August 31, 2012, and the related month-end adjustment data. Princess, Inc. Trial Balance Work Sheet August 31, 2012 Trial Balance Adjustments Adjusted Trial Balance AccountDebit Credit Debit Credit Debit CreditCash 8,300 Accunts Receivable 1,900 Prepaid Rent 2,100 Supplies 2,400 Furniture 63,000 Accumulated Depreciation 3,700 Accounts Payable 4,000 Salary Payable Common Stock 13,000 Retained Earnings 53,430 Dividends 4,300 Service Revenue 11,000 Salary Expense 2,600 Rent Expense Utilities Expense 530 Depreciation Expense Supplies Expense Total $85,130 $85,130 $- $- $- $- Adjustment data at August 31, 2012, include the following: a. Accrued advertising revenue at August 31, $2,100. b. Prepaid rent expired during the month. The unadjusted prepaid balance of $2,100 relates to the period August 2012 through October 2012. c. Supplies used during August, $2,090. d. Depreciation on furniture for the month. The furniture’s expected useful life is three yearse. Accrued salary expense at August 31 for Monday, Tuesday, and Wednesday. The five-day weekly payroll is $5,100 and will be paid on Friday. Requirements (40 points) 1. Using Exhibit 3-9 as an example, prepare the adjusted trial balance of Princess, Inc., at August 31, 2012. Key each adjusting entry by letter. 2. Prepare the monthly income statement, the statement of retained earnings, and the classified balance sheet. Draw arrows linking the three statements.