Required:

$[20$ points$]$

Prepare any necessary adjusting entries on December $31,2010,$ in relation to transactions and events a through e$.$

$[10$ points$]$

Prepare T$-$accounts for the accounts affected by adjusting entries, and post the adjusting entries. $[5$ points$]$

Use the amounts in the T$-$accounts to prepare an adjusted trial balance for Magic Company on Dec $31,2011$

$[5$ points$]$

s$.$

The following information is also available:

a$.$ Office supplies on hand, December $31,2010,$$$225.$

b$.$ Insurance still unexpired, $$100.$

c$.$ Estimated depreciation of office equipment, $$795.$

d$.$ Telephone expense for December, $$21$; the bill was received but not recorded.

e$.$ The services for all unearned tax fees had been performed by the end of the year.