Pace Employment Counsellors provides counselling services to employees of companies that are downsizing. The business had the following account balances:

The following transactions occurred during December:
a. On December 1, paid cash to a marketing firm for four months of advertising work in advance. The contract was for $2,875 per month.
b. On December 6, supplies in the amount of $3,700 were purchased on account.
c. On December 15, the company received a cash advance of $8,000 for work to be performed starting January 1.
d. On December 29, the company provided counselling services to a customer for $15,000, to be paid in 30 days.
The following information was available on December 31, 2014:
e. A physical count shows $7,600 of supplies remaining on hand on December 31.
f. The building has an expected useful life of eight years, with no expected value after eight years. The building was purchased on January 2, and the straight-line method of amortization is used.
g. The computer equipment, purchased on January 2, is expected to be used for four years with no expected value after four years. The straight-line method of amortization is used.
h. The marketing firm has performed one quarter of the work on the contract.
i. The company's Managing Director, who earns $800 per day, worked the last six days of the year and will be paid on January 4, 2015.
Required
1. Journalize the entries. Add new accounts if necessary.
2. Prepare an adjusted trial balance on December 31, 2014.
3. Prepare an income statement for the year ended December 31, 2014. List expenses in the order of dollar amount, from the greatest amount to the least.
4. Prepare a statement of owner's equity for the year ended December 31, 2014.
5. Prepare a balance sheet at December 31, 2014.

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PACE EMPLOYMENT COUNSELLORS Unadjusted Trial Balance December 1, 2014 $ 19,000 Cash 23,200 Accounts receivable Prepaid advertising 1,500 5,000 Supplies Computer equipment Accumulated amortization-computer equipment Building Accumulated amortization–building 69,000 288,000 Land 144,000 Accounts payable 93,600 B. Pace, capital 330,000 B. Pace, withdrawals 79,000 Counselling revenue 342,500 Salaries expense 120,000 Supplies expense Utilities expense 17,400 Total $766,100 $766,100 %24