Question No 2: The following unadjusted trial balance is prepared at month-end for Trey Company: TREY COMPANY Unadjusted trial balance For month ended February 28, 2003 Account title Debit Credit Cash...

Extracted text: Question No 2: The following unadjusted trial balance is prepared at month-end for Trey Company: TREY COMPANY Unadjusted trial balance For month ended February 28, 2003 Account title Debit Credit Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accum. Depr. – store equipment Accounts payable Trey A., Capital Trey A., Withdrawals Sales Sales discounts $1,500 8,000 500 700 24,800 $4,300 7,200 15,300 1,400 58,800 600 5,600 27,000 6,500 2,000 7,000 Sales returns and allowances Purchases Salaries expense Rent expense Advertising expense Totals $85,600 $85,600 Other Data: a. Store supplies available at month-end amount to $50. b. Expired insurance, an administrative expense, for the month is $350. c. Depreciation expense on store equipment, a selling expense, is $150 for the month. d. Closing inventory at year end is Rs. 6000 Required: 1. Prepare adjusting journal entries for the above data. 2. Prepare Balance Sheet as on February 28, 2003. 3. Prepare closing Entries.