Reference no: EM132609086
Security Service Company, adjust its accounts every month. Given below is the company's Year-end unadjusted trial balance dated December 31, 2009.
SECURITY SERVICE COMPANY.
Unadjusted Trial Balance
For the Month Ended December 31, 2009
Cash 49,100
Consulting fees receivable 23,400
Prepaid office rent 6,300
Prepaid dues and subscriptions 300
Supplies 600
Equipment 36,000
Accumulated depreciation: equipment 10,200
Notes payable 5,000
Income taxes payable 12,000
Unearned consulting fees 5,950
Capital stock 30,000
Retained earnings 32,700
Dividends 60,000
Consulting fees earned 257,180
Salaries expense 88,820
Telephone expense 2,550
Rent expense 22,000
Income taxes expense 51,000
Dues and subscriptions expense 560
Supplies expense 1,600
Depreciation expense: equipment 6,600
Miscellaneous expenses 4,200
353,030 353,030
Other Data:
1. On December 1, three months' rent paid in advance Monthly rate $ 2,100
2. Amount of dues and subscriptions expired during December 50
3. Estimated cost of unused supplies at December 31 450
4. Useful life of equipment in years 5
5. Accrued interest on notes payable at year-end. $ 100
6. Consulting services rendered during December to clients who paid in advance 2,850
7. Engineering services rendered but unbilled during December 11,000
8. Salaries earned during December but not paid 1,700
9. Estimated income tax expense for the year 56,000
Amount recognized in prior months 51,000
Amount previously paid 39,000
Remainder to be paid 17,000
Question i. Prepare the necessary adjusting journal entries on December 31, 2009; also mention the type of each entry in separate column, respectively.
Question ii. Prepare the Adjusted Trial Balance (worksheet) at December 31, 2009