45 E3-43. (Learning Objectives 3, 4, 5: Adjusting the accounts; preparing the financial statements, closing the accounts) Refer to Exercise 2-36. Start from the trial balance and the posted T-accounts that Jerome Smith, Certified Public Accountant, Professional Corporation (P.C.), prepared for his accounting practice at March 18. A professional corporation is not subject to income tax. Later in March, the business completed these transactions: Accrual Accounting 177 Mar 21 21 26 28 31 Received $2,000 in advance for tax work to be performed over the next 30 days. Hired a secretary to be paid on the 15th day of each month. Paid $800 for the supplies purchased on March 5. Collected $1,900 from the client on March 18. Declared and paid dividends of $1,600. Requirements 1. Journalize the transactions of March 21 through 31. 2. Post the March 21 to 31 transactions to the T-accounts, keying all items by date. 3. Prepare a trial balance at March 31. 4. At March 31, gather the following information for the adjusting entries: a. Accrued service revenue, $1,800 b. Earned $600 of the service revenue collected in advance on March 21 c. Supplies on hand, $300 d. Depreciation expense equipment, $70; furniture, $125 e. Accrued expense for secretary's salary, $620 Make these adjustments in the adjustments columns and complete the adjusted trial balance at March 31