L$01$ PROBLEM $5\mathrm{.}5$B

Snort Comprehensive through Problem Including

Both Adjusting and

$104$

Closing Entries

$106$

Next Job, Inc., provides employment consulting services. The company adjusts its accounts monthly but performs closing entries annually on December $31.$ The firm's unadjusted trial balance dated December $31,2011,$ is shown on the following page.

Other Data

Accrued but unrecorded and uncollected consulting fees earned total $$25,000$ at December $31,2011.$

The company determined that $$15,000$ of previously unearned consulting services fees had been earned at December $31,2011.$

Office supplies on hand at December $31$ total $$300.$

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 nine$-$month rent agreement on June $1,2011.$

The company prepaid its six$-$month insurance policy on December $1,2011.$

Accrued but unpaid salaries total $$12,000$ at December $31,2011.$

On September $1,2011,$ the company borrowed $$60,000$ by signing an eight$-$month, $4$ percent note payable. The entire amount, plus interest, is due on March $1,2012.$

The company's accounting firm estimates that income taxes expense for the entire year is $$50,000.$ The unpaid portion of this amount is due early in $2012.$

Problem Set B

$237$

NEXT JOB, INC.

UNADJUSTED TRIAL BALANCE

DECEMBER $31,2011$

Cash $.....$

Accounts receivable

Office supplies $.$

Prepaid rent $...................................................3,600$

Unexpired insurance $.............................................................................$

Office equipment $.....................................72,000$

Accumulated depreciation: office equipment $.....$

Accounts payable $.$

Notes payable $($due $3/1/12)$

Interest payable $.$

Income taxes payable.

Dividends payable.

Unearned consulting fees $.$

Capital stock $.$

Retained earnings. $.$

Dividends $...$

Consulting fees earned $.$

Rent expense $.$

Insurance expense.

Office supplies expense $.$

Depreciation expense: office equipment

Salaries expense $.$

Utilities expense.

Interest expense.

Income taxes expense

Totals

$$24,000$

$4,000$

$60,000$

$600$

$9,000$

$3,000$

$22,000$

$200,000$

$40,000$

$500,000$

$\backslash$table$[[14,700],[2,200],[4,500],[11,000],[330,000],[4,800],[3,000],[45,000],[$$$862,600$