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Problem - The trial balances before and after adjustment for Garcia Company at the end of its fiscal year are presented below.
GARCIA COMPANY Trial Balance August 31, 2011
Before Adjustment
After Adjustment
Dr.
Cr.
Cash
$10,400
Accounts Receivable
8,800
9,800
Office Supplies
2,300
700
Prepaid Insurance
4,000
2,500
Office Equipment
14,000
Accumulated Depreciation-Office Equipment
$3,600
$4,500
Accounts Payable
5,800
Salaries Payable
-0-
1,100
Unearned Rent Revenue
1,500
600
Common Stock
10,000
Retained Earnings
5,600
Service Revenue
34,000
35,000
Rent Revenue
11,000
11,900
Salaries Expense
17,000
18,100
Office Supplies Expense
1,600
Rent Expense
15,000
Insurance Expense
Depreciation Expense
900
$71,500
$74,500
Prepare the income statement and a retained earnings statement for the year and the balance sheet at August 31.
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