Bullseye Market Research Company (BMRC) specializes in conducting focus groups for businesses launching a new product. BMRC analyzes customer likes and dislikes to ensure new products will be successful.

You are the accounting manager. Your staff submitted the above trial balance for December 31, 2020. In your review, you discover the following additional information that has not been included in the trial balance.

a. The equipment has an estimated useful life of 16 years. If you need to create a new account, use account number 604.

b. Employees were paid $3,100 for 10 days of work. This payroll included 2 days of payroll in December that were not recorded at year-end. If you need to add an account, use account number 202.

c. On December 31, BMRC completed a focus group for a client on handbags. An invoice was sent to the company for $5,000 due January 31, 2021.

d. On December 31, the company completed a market research report for a client. The client had prepaid $3,000 for this service in November.

Required

1. Prepare the missing adjusting entries for transactions a?d.

2. Prepare an adjusted trial balance.

3. Based on your adjusted trial balance, prepare the closing entries.

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Debit No. Account Credit $ 100 Accounts payable.. 201 $2,000 108 Accounts receivable Accumulated depreciation, equipment. 168 7,250 184 Accumulated depreciation, office furniture 3,100 101 Cash 1,500 Consulting revenue. 302 44,000 194 Copyright. 4,200 Dan Eagle, capital. Dan Eagle, withdrawals. Depreciation expense, office furniture 251 24,715 301 3,500 606 700 167 Equipment. 16,000 Insurance expense 633 600 401 Interest income... 70 623 Interest expense 30 233 Long-term notes payable. 4,000 145 Notes receivable. 5,000 183 5,100 Office furniture. 104 Short-term investments. 4,000 750 126 Supplies. Supplies expense. 2,150 637 Telephone expense.. 652 470 Unearned consulting revenue. 203 3,375 688 Utilities expense. 3,230 612 Wages expense.. 37,380 $86,610 $86,610 Totals.