Walker Corp. provides the following information relating to adjusting entries required at the end of its fiscal
Question:
Walker Corp. provides the following information relating to adjusting entries required at the end of its fiscal year, December 31.
a. Interest expense of $270 for the month of December will be paid in January of next year.
b. Unbilled revenue for services performed in December is $900. The company will prepare and forward invoices for this amount in January of next year to customers with a 30-day collection term.
c. $2,700 cash was received in advance on November 30 for future services to be performed by Walker Corp. and was recorded as deferred service revenue. The services were performed on December 20.
d. Walker Corp. acquired a two-year insurance policy on January 1 for $8,640 cash that was recorded initially as prepaid insurance.
e. Depreciation on equipment is $10,800 for the year.
The following is the unadjusted trial balance for Walker Corp. as of December 31. Prepare an adjusted trial balance after the required adjusting entries were made for the above information. Assume that no adjusting journal entries were recorded during the year prior to year-end.