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Question 3 [20 points] Please enter the following information, taken at year-end, in the trial balance by entering the letter (on the left) and amount (on the right) of each adjustment in the 'Adjustments' column, for the appropriate accounts. Then fill in the 'Adjusted Trial Balance' column with the balances of each account. $1,780 of interest has accrued on a note payable and is unrecorded. Of the $5,750 rent paid to Callaho Inc. in advance, $4,500 has not yet been earned. Buildings purchased in a previous year for $48,750 will be sold after ten years for $18,500. The estimated yearly depreciation on the furniture is $500. Interest of $160 on notes receivable is unrecorded and unpaid. $2,900 of the advertising paid for in advance has been published by the newspaper. Of the consulting fees Callaho Inc. received in advance, $2,400 has been earned. Equipment purchased in a previous year for $23,125 will be sold after five years for $1,750. Adjustments Cr. Adjusted Trial Balance Dr. Cr. Dr. Callaho Inc. Trial Balance December 31, 2014 Unadjusted Trial Balance Dr. Cr. 100 4,900 4,700 21,700 100 48,750 93,330 14,500 0 0 Account Accounts payable Accumulated depreciation, building Accumulated depreciation, equipment Accumulated depreciation, furniture Advertising expense Building Cash Consulting revenue earned Depreciation expense, building. Depreciation expense, equipment Depreciation expense, furniture Equipment Furniture Interest earned Interest expense Interest payable Interest receivable Notes receivable Prepaid advertising, Rent earned Retained earnings Share capital Short-term notes payable Supplies Unearned consulting revenue Unearned rent Totals 0 23,125 33,100 800 7,300 0 0 12,000 8,300 1,700 280 153,875 12,500 100 5,300 5,750 226,105 226,105

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