1. Jordan Air has the following information in its unadjusted and adjusted trial balances. What are the adjusting entries that Jordan Air likely recorded?

 

Unadjusted

Adjusted

 

Debit

Credit

Debit

Credit

Prepaid insurance

$6,200

$ 0

$5,900

 

Salaries payable

 

 

 

$1,400

2. What accounts are taken from the adjusted trial balance to prepare an income statement?

3. In preparing financial statements from an adjusted trial balance, what statement is usually prepared second?