Arrow Hospitality prepares adjustments monthly and showed the following at September 30, 2023:
ARROW HOSPITALITY
Trial Balances
September 30, 2023
Unadjusted Adjusted
Trial Balance Adjustments Trial Balance
Account Dr. Cr. Dr. Cr. Dr. Cr.
Cash $ 5,900
Accounts receivable 11,100
Repair supplies 2,150
Prepaid rent 13,900
Office furniture 25,420
Accounts payable $ 7,900
Notes payable 21,200
Eli Arrow, capital 67,628
Eli Arrow, withdrawals 4,900
Hospitality revenues 127,000
Salaries expense 143,500
Wages expense 16,858
Totals $ 223,728 $ 223,728
Additional information available for the month ended September 30, 2023:
Interest of $159 had accrued on the notes payable for the month of September.
The office furniture was acquired on September 1, 2023, and has an estimated four-year life. The furniture will be sold for about $1,900 at the end of its four-year life.
A count of the Repair Supplies revealed a balance on hand of $690.
A review of the Prepaid Rent account showed that $12,000 had been used during September.
Accrued wages of $2,750 had not been recorded at month-end.
The September Internet bill for $120 had been received and must be paid by October 14.
Accrued revenues of $6,100 were not recorded at September 30.
Required:
1. Complete the adjusted trial balance by including the adjusting entries.
2-a. Prepare an income statement based on the adjusted trial balance completed in Part 1.
2-b. Prepare a statement of changes in equity based on the adjusted trial balance completed in Part 1. Assume that the owner, Eli Arrow, made an investment during September of $3,500.
2-c. Prepare a balance sheet based on the adjusted trial balance completed in Part 1. Assume that the owner, Eli Arrow, made an investment during September of $3,600.
