Arrow Hospitality prepares adjustments monthly and showed the Trial Balance at September 30,2020: (15 marks)

Arrow Hospitality Trial Balance September 30, 2020

1 Cash $6,000

2 Accounts Receivable 11,200

3 Repair supplies 2,200

4 Prepaid rent 14,000

5 Office Furniture 26,000

6 Accounts Payable $8,000

7 Notes Payable 21,600

8 Eli Arrow, Capital 67,758

9 Eli Arrow, Withdrawals 5,000

10 Hospitality Revenues 128,000

11 Salaries expense 144,000

12 Wage expense 16,958

13 Totals $225,358 $225,358

Additional information available for the month ended September 30,2020”

a) Interest of $162 had accrued on the notes payable for the month of September.

b) The office furniture was acquired on September 1,2020, has an estimated 4-year life. The furniture will be sold for about $2000 at the end of its four-year life.

c) A count of the repair supplies revealed a balance on hand of $700.

d) A review of the prepaid rent account showed that $10,000 had been used during September.

e) Accrued wages of $2,800 had not been recorded at month end.

f) The September internet bill for $100 had been received and must be paid by October 14.

g) Accrued revenues of $6,200 were not recorded on September 30.

1. Prepare adjusted journal entries for all transactions.

2. Prepare an adjusted Trial Balance.

3. Prepare an Income Statement based on the adjusted Trial Balance.

4. Prepare a Statements of changes in equity based on the adjusted Trial Balance.

5. Prepare a Balance Sheet based on the adjusted Trial Balance.