The trial balance of Lexington Inn Company at December 31, 2012, and the data needed for the month-end adjustments follow.Adjustment data at December 31 follow:a. Prepaid insurance still in force, $700.b. Supplies used during the month, $500.c. Depreciation for the month, $1,600.d. Accrued salary expense, $400.e. Unearned service revenue still unearned, $1,400.Requirements1. Journalize the adjusting entries.2. The unadjusted balances have been entered for you in the general ledger accounts. Post the adjusting entries to the ledger accounts.3. Prepare the adjusted trial balance.4. Prepare the income statement, statement of owner’s equity, and balance sheet for the business for the month ended December 31,2012.
The trial balance of Lexington Inn Company at December 31