Problem 5.5A (Static) Short Comprehensive Problem Including Both Adjusting and Closing Entries (LO5-1, LO5-2, LO5-3, LO5-4, LO5-6) Silver Lining, Inc., provides investment advisory services. The company adjusts its accounts monthly, but performs closing entries annually on December 31. The firms unadjusted trial balance dated December 31, current year, appears as follows. SILVER LINING, INC. Unadjusted Trial Balance December 31, Current Year Debits Credits Cash $ 51,402 Accounts receivable 2,400 Office supplies 246 Prepaid rent 1,440 Unexpired insurance 324 Office equipment 64,800 Accumulated depreciation: office equipment $ 42,300 Accounts payable 1,680 Interest payable 432 Income taxes payable 2,100 Notes payable 10,800 Unearned consulting services revenue 4,200 Capital stock 36,000 Retained earnings 9,600 Dividends 1,200 Consulting services revenue 72,000 Office supplies expense 726 Depreciation expense: office equipment 9,900 Rent expense 4,230 Insurance expense 1,212 Salaries expense 32,520 Interest expense 432 Income taxes expense 8,280 Totals $ 179,112 $ 179,112 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 companys 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?