Following are the trial balance (unadjusted) and other information related to ARC Construction Company:

North Construction Company

Trial Balance

December 31, 2022

Debit Credit

Cash $ 53,530

Accounts Receivable 21,900

Allowance for Doubtful Accounts $ 230

Supplies 1,660

Prepaid Insurance 2,800

Equipment 38,000

Accumulated Depreciation-Equipment 7,600

Notes Payable 8,000

Accounts Payable (Accrued Liabilities) 2,300

Common Stock 15,000

Retained Earnings 48,370

Service Revenue 176,500

Salaries and Wages Expense 127,500

Rent Expense 9,750

Utilities Expense 1,880

Office Expense 980

$ 258,000 $ 258,000

1. Fees received in advance from client's $7,600, which were recorded as revenue.
2. Services performed for clients by year-end that were not recorded, $7,100.
3. Bad debt expense for the year, $1,430.
4. Insurance expired during the year, $1,400.
5. Equipment is being depreciated at 10% per year.
6. North received from the bank a 120-day, 6% note for $8,000 on November 1, 2022.
7. Cost to lease the building is $750 per month. The rent for all of 2022 and January 2023 has been paid. All rent was recorded as Rent Expense.
8. Office salaries and wages earned but unpaid at year-end, $3,050.
9. Supplies remaining at year-end, $540.
10. Unrecorded utilities at year-end, $225.
11. The income tax rate is 21%.