ACCOUNT AND BUDGET SUPPORT (ABS) - LEVEL IV PREPARE 1: PREPARE FINANCIAL REPORT The following Unadjusted Trial Balance was taken from the books of Freedom Company On Sene 30, 2011 E.C FREEDOM COMPANY UNADJUSTED TRIAL BALANCE SENE 30, 2011 E.C Account Title Debit Credit Cash 332,300 Account receivable 372,813 Office supplies 30,000 Prepaid Rent 60,000 Prepaid insurance 12,000 Furniture and Equipment 300,000 Accumulated depreciation 30,000 Account payable 38,000 Common stock 600,000 Retained earnings 260,000 Dividend 96,187 Service revenue 308,300 Salaries expense 20,000 Advertising expense 8,000 Utilities Expense 5,000 Balance 1,236,300 1,236,300 Additional information 1. Office rent was paid for coming two years 2. The physical inventory for office supplies end of the year showed on hand amounted is 2,000 3. Furniture and Equipment has 18 years estimate life with salvage value of Birr. 30,000 and the company using straight line method 4. Prepaid insurance was paid for coming two years Instruction Task 1. Preparing necessary adjusting entries for the end of the year Task 2. Prepared adjusted Trial balance Task 3. Prepare financial statement A. Income statement (Assume profit tax rate was 30%) B. Statement of Retained Earnings and Balance statement​
