The unadjusted trial balance of Secretarial Services is as follows:

	SECRETARIAL SERVICES Unadjusted Trial Balance as at 31 December 2017
	Account		Debit			Credit
	Cash at bank Office supplies Prepaid insurance Office equipment Accumulated depreciation – office equipment Bank loan payable (non-current) V. Prim, Capital V. Prim, Drawings Secretarial services revenue Salaries expense Advertising expense Repairs expense Sundry expense Electricity expense Telephone expense Interest on bank loan expense			$   6 200 7 260 1 725 82 800 27 000 63 250 2 250 1 260 7 520 3 405 2 620     1 350			$  14 600 50 000 15 540 126 500
				$206 640			$206 640

The following additional information should be taken into account:

1. Office supplies unused at 31 December 2017 amount to $2320.

2. Unexpired insurance at 31 December 2017 is $540.

3. Office equipment is to be depreciated by $7400.

4. Salaries accrued but unrecorded on 31 December, $260.

5. Electricity accrued and unpaid, $830.

6. On 31 December, telephone charges of $425 have accrued but are unrecorded and unpaid.

7. Interest accrued on bank loan at 31 December was $250.

Required

A. Prepare adjusting and closing entries

B. Prepare an income statement for the year ended 31 December 2017 and a balance sheet as at 31 December 2017. (A worksheet may be prepared to assist but it is not necessary.)