Reference no: EM131585349

Problem - Management Group, Inc., adjusts and closes its books each month.  The trial balance at March 31, 2011 before adjustments is as follows:

                                              Debit                  Credit

Cash                                       26,650                  

Accounts Receivable                  30,000

Supplies                                   3,750

Prepaid Advertising                   8,400

Equipment                                72,000

Accumulated Depreciation:

 Equipment                                                       25,000

Unearned Consulting Fees                                  19,500

Capital Stock                                                    20,000

Retained Earnings                                             26,500

Consulting Fees Earned                                     87,500

Salaries Expense                      32,000

Utilities Expense                       1,200

Rent Expense                           4,500    

                                              178,500           178,500

The following information relates to month-end adjustments:

a. According to contracts, consulting fees received in advance that were earned in March total $13,000.

b. On January 1, 2011, the company paid in advance for 6 months' advertising in professional journals.

c. At March 31, supplies on hand amount to $1,250.

d. The equipment has an original estimated useful life of 6 years.

Required:

1. Prepare the required adjusting entries in journal form.

2. After the proper adjusting entry is made, what is the balance in the Unearned Consulting Fees account at March 31?