A six-column table for JJW Company follows. The first two columns contain the unadjusted trial balance for the company as of July 31, 2011. The last two columns contain the adjusted trial balance as of the same date.

Required

1. Analyze the differences between the unadjusted and adjusted trial balances to determine the eight adjustments that likely were made. Show the results of your analysis by inserting these adjustment amounts in the table’s two middle columns. Label each adjustment with a letter a through h and provide a short description of it at the bottom of the table.

2. Use the information in the adjusted trial balance to prepare the company’s (a) income statement and its statement of owner’s equity for the year ended July 31, 2011 (note: J. Winner, Capital at July 31, 2010, was $28,420, and the current-year withdrawals were $10,000), and (b) the balance sheet as of July 31, 2011.

Â	Unadjusted		Â	Adjusted
Â	Trial Balance		Adjustments	Trial Balance
Â	Â		Â	Â
Cash	$27,000	Â	Â	$27,000	Â
Accounts receivable	12,000	Â	Â	22,460	Â
Office supplies	18,000	Â	Â	3,000	Â
Prepaid insurance	7,320	Â	Â	4,880	Â
Office equipment	92,000	Â	Â	92,000	Â
Accum depreciation —	Â	Â	Â	Â	Â
Office equip	Â	$12,000	Â	Â	$18,000
Accounts payable	Â	9,300	Â	Â	10,200
Interest payable	Â	0	Â	Â	800
Salaries payable	Â	0	Â	Â	6,600
Unearned consulting fees	Â	16,000	Â	Â	14,300
Long-term notes payable	Â	44,000	Â	Â	44,000
J Winner, Capital	Â	28,420	Â	Â	28,420
J Winner, Withdrawals	10,000	Â	Â	10,000	Â
Consulting fees earned	Â	156,000	Â	Â	168,160
Depreciation expense —	Â	Â	Â	Â	Â
Office equip	0	Â	Â	6,000	Â
Salaries expense	71,000	Â	Â	77,600	Â
Interest expense	1,400	Â	Â	2,200	Â
Insurance expense	0	Â	Â	2,440	Â
Rent expense	13,200	Â	Â	13,200	Â
Office supplies expense	0	Â	Â	15,000	Â
Advertising expense	13,800	Â	Â	14,700	Â
Totals	$265,720	$265,720	Â	$290,480	$290,480