I really need help with the adjusted trial balance for this question!

JNK Accounting

To: New intern Date: September 5, 2016

From: S. Supervisor Subject: Alternative Consulting

As you know, we recently took on a new client, Alternative Consulting. Alternative provides consulting services to major utility companies and was formed on September 1, 2015. Our first assignment is to prepare GAAP financial statements for year ending August 31, 2016. I have attached a spreadsheet with Alternative Consultings unadjusted trial balance, and I need you to prepare adjusting entries, an adjusted trial balance and financial statements for the year. Although the accounts are in chart-of-accounts order, they first need to be separated into debit and credit columns. You will need the following information to make the adjusting entries.

1. Prepaid insurance relates to a six-month policy that was purchased on July 1, 2016.

2. The equipments useful life is 20 years with no salvage value; the patent is expected to last five years, also with no salvage value. Use the straight-line method.

3. The company earned $70,000 of the unearned revenue in this fiscal year.

4. Based on a physical count, the value of the supplies at August 31, 2016 was $500,000.

5. The five-year note has an interest rate of 8% and was outstanding the entire year.

6. Employees have earned $200,000 since the last pay period.

7. We estimate that 2% of revenue will be uncollectible.

8. On August 31, the company declared dividends of $50,000 to be paid on September 15, 2016.

9. Income taxes are estimated to be 25% of income before taxes.

Since this is your first work product for the JNK, I need you to frankly assess your work to help me determine what projects to assign you in future. As part of that assessment, please detail any problems that remain with the final work product. Some additional things you should address are the number of hours you spent, what things you remembered from school and what you needed to research, your comfort level with the assignment, and whether you think you would like to have more challenging work in the future. After completing this assignment, what do you see as your strengths and weaknesses? What additional training do you feel you need, if any?

I look forward to working with you. Please let me know if you have questions or concern

cash 73334900

ar 2780000

supplies 1115000

prepaid insurance 24000

equipment 8000000

patent 165700

ap 955000

unearned service revenue 125600

notes payable 5800000

capital stock 10000000

retained earnings 0

consulting revenue 3290000

salary expense 476000

utility expense 42500

advertising expense 42500

rent expense 160000

repairs expense 30000