The trial balance of State Service Company at December 31, 2009, which is the end of its year-long accounting period, is presented below. Data needed for the adjusting entries include:
A. Supplies on hand at year's end, $2,000.
B. Depreciation on furniture and fixtures, $10,000.
C. Depreciation on building, $25,000.
D. Salaries owed but not yet paid $15,000.
E. Accrued service revenue, $20,000.
F. Of the $45,000 balance of unearned service revenue, $25,000 was still unearned at the end of the year.
State Service Company
Trial Balance
December 31, 2009

Debit Credit
Cash $ 200,000
Accounts Receivable 372,000
Supplies 6,000
Furniture and Fixtures 100,000
Accumulated Depreciation – Furniture and Fixtures $ 40,000
Building 250,000
Accumulated Depreciation – Building 130,000
Accounts Payable 380,000
Salary Payable
Unearned Service Revenue 45,000
Mr. X, Capital 293,000
Owner's Withdrawals 65,000
Service Revenue 288,000
Salary Expense 170,000
Supplies Expense
Depreciation Expense – Furniture & Fixtures
Depreciation Expense – Building
Miscellaneous Expense 13,000
Total $ 1,176,000 $ 1,176,000

Required:
1. Journalize State Service Company's adjusting entries at December 31, 2009.
2. Show T-Accounts for all the accounts and post the adjusting entries to appropriate T-Accounts (please apply account numbers on your own for reference).
3. Prepare the Adjusted Trial Balance.
4. Prepare Income Statement, Statement of Owner's Equity, and Balance Sheet at December 31, 2009 from the adjusted trial balance.

You need to do adjusting entries for items A through F. For item A you need to calculate the amount, which will be the difference between your account balance and the actual amount onhand. The other items the amounts are given to you.

The best way to start this problem is set up T accounts for all of your accounts, do your adjusting entries, then post your adjusting entries to your T accounts.

From your accout balances you can set up a Worksheet with columns for your beginning account balances, which is known as your Trial Balance. Then you add two more columns for your adjustments. Now you can do an Adjusted Trial Balance which should be account balances after your adjustments, which will be two more columns.

After your adjusted trial balance you need to add 4 more columns to your Worksheet; 2 columns for the income statement and 2 columns for the balance sheet. This will help you in preparing your financial statements.