After five years of operations, Svenson's Tutoring Clinic showed the following post-closing balances at December 31, 2013.

Required
Analysis Component:
a. Explain why Leda Svenson, Withdrawals, Tutoring Fees Earned, Rent Expense, Depreciation Expense, and Advertising Expense have zero balances.
Preparation Component:
b. Journalize and post the following transactions that occurred during 2014.
Jan 15Provided $8,000 of tutoring services on account.
Feb. 20 Paid $2,000 for advertising that appeared in today's newspaper.
Jul. 7Collected $9,000 from credit customers.
Dec. 10 The owner withdrew $3,000 cash for personal use.
c. Prepare an unadjusted trial balance as at December 31, 2014.
d. Journalize and post the adjusting entries on December 31, 2014, based on the following additional information:
- Annual depreciation on the office equipment is $2,000.
- $2,400 of the balance in unearned fees has been earned.
- The entire balance in prepaid rent has expired.
e. Prepare an adjusted trial balance at December 31, 2014.
f. Prepare an income statement, statement of changes in equity, and classified balance sheet.
g. Journalize and post the closing entries.
h. Prepare a post-closing trial balance.

Transcribed Image Text:

Accounts Receivable Office Equipment Cash Prepaid Rent 2,000 5,000 3,000 20,000 Accumulated Depreciation, Office Equipment Leda Svenson Capital Leda Svenson Withdrawals Unearned Fees 10,000 2,900 17,100 0- Advertising Tutoring Fees Earned Depreciation Expense Expense 0 Rent Expense 0-