Reference no: EM132382138

Question

Below is the unadjusted trial balance of Benny's Time Management Consulting Company.

Benny's Time Management Consulting Company Trial Balance December 31, 2016
Cash	$7,950
Accounts receivable
Prepaid insurance	2,400
Supplies	3,720
Equipment	26,000
Accumulated depreciation, equipment
Accounts payable		$6,200
Salaries payable
Unearned consulting fees		3,000
Common shares		10,000
Retained earnings		19,600
Consulting revenue		3,900
Depreciation expense, equipment
Salaries expense	1,400
Insurance expense
Rent expense	1,000
Supplies expense
Utilities expense	230

$47,700        $47,700

The following year-end adjustments are needed:

A two-year insurance policy was purchased on November 30, 2016.

An end of year inventory of supplies indicated a remaining inventory of $2,670.

Depreciation of equipment is $375.

Earned $250 of previously unearned revenue.

Accrual of salaries for $210.

Accrual of $1,800 revenue owed by a customer and not yet billed.

Instructions:

Prepare the adjusting journal entries. Use standard form for your journal entries. Page 107 in your text provides a good example.

Prepare the following:

Adjusted trial balance.

Income statement for the year 2016 in good form.

Statement of retained earnings in good form.

Classified Statement of Financial Position in good form.

Closing journal entries.

Good form includes a full title, a $ sign on the first number in a column and in the statement total, double underline on the statement total, proper use of columns, and no abbreviations.