Refer to Exercise 2-13 of Chapter 2. Start from the trial balance and the posted Taccounts that Emily Schneider, Accountant, Professional Corporation (P.C.), prepared for her accounting practice at December 18. Later in December, the business completed these transactions:

Dec. 21 Received \(\$ 900\) in advance for tax work to be performed evenly over the next 30 days. 21 Hired a secretary to be paid \(\$ 1,500\) on the 21 st day of each month.

26 Paid for the supplies purchased on December 5.

28 Collected \(\$ 600\) from the consulting client on December 18 .

30 Declared and paid dividends of \(\$ 1,600\).

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1. Open these T-accounts: Accumulated Depreciation-Equipment; Accumulated Depreciation-Furniture; Salary Payable; Unearned Service Revenue; Retained Earnings; Depreciation Expense--Equipment; Depreciation Expense--Furniture; Supplies Expense.

2. Journalize the transactions of December 21 through 30 .

3. Post to the T-accounts, keying all items by date.

4. Prepare a trial balance at December 31. Also set up columns for the adjustments and for the adjusted trial balance, as illustrated in Exhibit 3-10.

5. At December 31, Schneider gathers the following information for the adjusting entries:

a. Accrued service revenue, \(\$ 400\).

b. Earned a portion of the service revenue collected in advance on December 21.

c. Supplies on hand, \(\$ 100\).

d. Depreciation expense-equipment, \(\$ 50\); furniture, \(\$ 60\).

e. Accrued expense for secretary salary.

Make these adjustments directly in the adjustments columns, and complete the adjusted trial balance at December 31 .
6. Journalize and post the adjusting entries. Denote each adjusting amount as Adj. and an account balance as Bal.
7. Prepare the income statement and statement of retained earnings of Emily Schneider, Accountant, P.C., for the month ended December 31, and prepare the balance sheet at that date.
\section*{CHALLENGE EXERCISES}