?Question $1$

Silver Lining, Inc., provides investment advisory services. The company adjusts its accounts monthly, but performs closing entries annually on

December $31.$ ?The firm's unadjusted trial balance dated December $31,$ ?current year, appears as follows.

Other Data

Accrued but unrecorded and uncollected consulting services revenue totals $$1,800$ ?at December $31,$ ?current year.

The company determined that $$3,000$ ?of previously unearned consulting services revenue had been earned at December $31,$ ?current year.

Office supplies on hand at December $31$ ?total $$132.$

The company purchased all of its equipment when it first began business. At that time, the estimated useful life of the equipment was six years

$(72$ ?months$).$

The company prepaid its six$-$month rent agreement on October $1,$ ?current year.

The company prepaid its $12-$month insurance policy on March $1,$ ?current year.

Accrued but unpaid salaries total $$2,280$ ?at December $31,$ ?current year.

On June $1,$ ?current year, the company borrowed $$10,800$ ?by signing a $9-$month, $8$ ?percent note payable. The entire amount, plus interest, is due

on March $1,$ ?next year.

The company's CPA estimates that income taxes expense for the entire year is $$9,000.$ ?The unpaid portion of this amount is due early in the next

year.

Required:

a$-1.$ ?Prepare the necessary adjusting journal entries on December $31,$ ?current year.

a$-2.$ ?Prepare an adjusted trial balance dated December $31,$ ?current year.

b$-1.$ ?From the adjusted trial balance prepared in part a$-2,$ ?prepare an income statement for the year ended December $31,$ ?current year.

b$-2.$ ?From the adjusted trial balance prepared in part a$-2,$ ?prepare the statement of retained earnings for the year ended December $31,$ ?current year.

b$-3.$ ?From the adjusted trial balance prepared in part a$-2,$ ?prepare the company's balance sheet dated December $31,$ ?current year.

c$.$ ?Prepare the necessary year$-$end closing entries.

d$.$ ?Prepare an after$-$closing trial balance.

e$.$ ?Compute the company's average monthly insurance expense for January and February of current year.

f$.$ ?Compute the company's average monthly rent expense for January through September of current year.

g$.$ ?If the company purchased all of its office equipment when it first incorporated, for how long has it been in business as of December $31,$ ?current

year?