North Slope Engineering Consultants was organized January 1 to provide technical services to various oil companies in Alaska. The trial balance on page 162 was pre¬

pared at June 30 after six months of operations. The accounts are to be adjusted and closed for the first time at June 30. LO8

Other data

(a) Office rent for one year was paid on January 1, when the lease was signed.

(b) Supplies on hand on June 30 amounted to $2,880.

(c) Instruments were purchased on January 1. The useful life was estimated at 10

(d) yAecacrrsu. ed interest expense on notes payable was $600 at June 30.

(e) A number of clients obtained during the first six months of the company’s opera¬
tions had made advance payments for services to be rendered over a considerable period. As of June 30, value of services rendered and chargeable against Un¬
earned Fees was $114,000.
(f ) Services rendered and chargeable to other clients amounted to $44,400 as of June 30. No entries had yet been made to record the revenue earned by performing services for these clients. (Debit Fees Receivable.)
(g) Salaries earned by staff personnel but not yet paid amounted to $6,000 on June 30.
Instructions a Prepare adjusting entries at June 30.
b Prepare an adjusted trial balance. (Note: You may find the use of T accounts helpful in computing the account balances after adjustments.)
c Prepare an income statement for the six-month period ended June 30, a statement of owner’s equity, and a balance sheet.

Transcribed Image Text:

Cash Prepaid office rent. Supplies. Instruments Notes payable Unearned fees Ronald Moulton, capital NORTH SLOPE ENGINEERING CONSULTANTS Trial Balance June 30, 19 Ronald Moulton, drawing. Fees earned. Salaries expense. Miscellaneous expense. $ 61,000 72,000 14,400 79,200 $ 60,000 156,000 131,200 51,240 127,440 194,400 2,400 $474,640 $474,640