This problem continues the Draper Consulting, Inc., situation from Problem 2-62 of Chapter 2. Start from the trial balance and the posted T-accounts that Draper Consulting, Inc., prepared at December 18, 2012, as follows:

Later in December, the business completed these transactions, as follows:
Dec 21 Received $1,400 in advance for client service to be performed evenly over the next 30 days.
21 Hired a secretary to be paid $2,055 on the 20th day of each month. The secretary begins work immediately.
26 Paid $450 on account.
28 Collected $300 on account.
30 Paid cash dividends of $1,400.
Requirements
1. Open these additional T-accounts: Accumulated depreciation'equipment; Accumulated depreciation'furniture; Salary payable; Unearned service revenue; Depreciation expense'equipment; Depreciation expense'furniture; Supplies expense.
2. Journalize the transactions of December 21–30.
3. Post to the T-accounts, keying all items by date.
4. Prepare a trial balance at December 31. Also set up columns for the adjustments and for the adjusted trial balance, as illustrated in Exhibit 3-8.
5. At December 31, the business gathers the following information for the adjusting entries:
a. Accrued service revenue, $550.
b. Earned $700 of the service revenue collected in advance on December 21.
c. Supplies on hand, $200.
d. Depreciation expense'equipment, $30; furniture, $70.
e. Accrued $685 expense for secretary's salary.
On your worksheet, make these adjustments directly in the adjustments columns, and complete the adjusted trial balance at December 31. Throughout the book, to avoid rounding errors, we base adjusting entries on 30-day months and 360-day years.
6. Journalize and post the adjusting entries. In the T-accounts, denote each adjusting amount as Adj and an account balance as Bal.
7. Prepare the income statement and the statement of retained earnings of Draper Consulting for the month ended December 31, 2012, and prepare the balance sheet at thatdate.

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DRAPER CONSULTING, INC. Trial Balance December 18, 2012 Balance Credit Account Title Cash Debit S 16,500 1,500 Accounts receivable Supplics Equipment Accumulated depreciation-equipment Furniture Accumulated depreciation-furniture Accounts payable Salary payable Uncarned service revenue 900 1,800 4,200 $ 5,100 Common stock Retained carnings Dividends Service revenue Rent expense Utilities expense Salary expense Depreciation expense-equipment Depreciation expense-furniture 18,000 2,600 550 250 Supplies expense $25,700 $25,700 Total