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Requirement #4: Prepare adjusting entries using the following information in the General Journalbelow. Show your calculations!a) One month's insurance has expired.b) Supplies used during the period $375.c) The estimated depreciation on equipment is $175.d) The estimated income taxes are $3,200.General JournalDateDescription (Account Name)DebitCreditaInsurance Expenses400Prepaid Insurance400bSupplies Expenses375Supplies375cDepreciation Expenses175Accumulated Depreciation175dIncome Tax Expenses3,200Income Tax Payable3,200Requirement #5:Post the adjusting entries to the General Ledger T-accounts and compute adjusted balances.Just add to the balances that are already listed.
Requirement #6: Prepare an adjusted trial balance in the space below.Melvin Plumbing CorporationAdjusted Trial BalanceJuly 31AccountsDebitCreditCash90005Prepaid Insurance4400Supplies525Equipment11500Accounts Payable10400Common Stock90000Dividends600Revenue16205Rent Expenses5500Salaries Expenses3300Insurance Expenses400Supplies Expenses375Depreciation Expenses175Income Tax Expenses3200Retained EarningsIncome Tax Payable3200Accumulated Depreciation - Equipment175119980119980
Requirement #7:Prepare the financial statements for the Melvin Plumbing Corporation as of July 31 in the space bYou will only be preparing the income statement, statement of retained earnings, and the balanceThe statement of cash flows is a required financial statement, but is not required for this case stuMelvin Plumbing CorporationMelvin Plumbing CorporationIncome StatementStatement of Retained EarningsFor the Month Ending July 31For the Month Ending July 31Revenues:Retained Earnings, July 1Revenue$ 16,205 Add: Net Income3,255Subtotal3,255Expenses:Less: Dividends600Rent Expense5,500Retained Earnings, July 31$ 2,655 Salaries Expense3,300Insurance Expense400Supplies Expense375Depreciation Expense175Income Tax Expense3,200Total Expenses12,95012,9503,255Net Income$ 3,255