The post-closing trial balance for Heron Consulting Services, inc, at December 31 of the prior year is presented here. 

The company respond the following transactions during the current year:

• January 2: Heron took out a 5%, 2-year note payable in the amount of $3,000 to pay for operating expenses. Interest is paid annually on January 1.
• February 1: Heron prepaid $600 for a one-year insurance policy. Policy begins February 1.
• March 1: Heron purchased office supplies for cash, $ 275.
• March 23: Heron paid $300 cash for advertising expenses.
• April 1: The existing balance of prepaid rent expired, so the company prepaid an additional $480 for a one-year lease on a warehouse.
• May 1: Heron signed a contract 10 perform consulting services and collected $550. Heron will not provide the services until next year.
• June 30: Heron paid wages in the amount of $200 to employees in cash.
• July 1: The company received $2,150 in cash for services rendered that day.
• August 8: Heron paid a utilities bill in the amount of $70 in cash .
• September 1: Heron paid wages in the amount of $80 in cash.
• October 1: Heron collected $250 of the accounts receivable balance.
• November 14: Heron purchased office equipment in the amount of $1,800 with cash. Heron will record $50 of depreciation on the equipment this year.
• December 6: Heron received a bill for $100 for deliveries made this year and will pay the bill next year.

At year-end, Heron had $100 of supplies remaining on hand. Also. services pertaining to the beginning balance of unearned service revenue were performed during the year. Finally, Heron reports $500 of depreciation expense related to the buildings.

Required
a. Show the accounting equation effect of each of the original transactions.

b. Prepare the journal entries for the original transactions. Omit explanations.

c. Prepare any necessary year-end adjusting journal entries for these transactions. Show the accounting equation effect of each of the adjusting journal entries.

d. Post all entries to the T-accounts.

e. Prepare the adjusted trial balance at the end of the year.

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Heron Consu ting Services, Inc. Post-Closing Triai Balance At December 31 (Prior Year) Account Debit Credit Cash $1,000 Accounts Receivable 800 150 Supp es 300 Prepad Rent Build ng 6,500 $ 750 Accounts Payable Unearned Serv ce Revenue 400 Common Stock 5,000 Retained Earnings 2.600 Serv ce Revenue Wage Expense Ut lit es Expense Admin strative Expense Totals $8.750 $8 750