a. XYZ Co. has earned $40,000 in additional fees for services they provided but not yet invoiced for year by end.

b. XYZ Co. pays its employees each Friday for the CURRENT Monday through Friday.

Assuming 12/31 is a Monday, and there are 5 employees who are paid $1000 in total daily, record the adjustment required for the days in December not yet recorded as an expense on the books

c. XYZ Co. Prepaid Insurance for $12,000 on May 1. It was a 12 month policy. Record the adjustment required as of 12/31 for the usage of the insurance.

d. XYZ Co. purchased a building on January 1 for $120,000 with a salvage value of $10,000. The useful life of the building is 20 years. Record the required adjustment as of 12/31.

e. A count of supplies at year end found that $2,000 of supplies were expired. Record the adjustment d.required as of 12/31 to recognize supplies used.

f. On 7/1 a client paid XYZ Co. $12,000 in advance for 12 months of services to start immediately upon payment e.Record the adjustment required as of 12/31 to recognize the revenue earned. f.INSTRUCTIONS: 1) Record the adjusting entries in a-f.

2) Post adjustments to chart

3)Complete the Adjusted Trial Balance/Income Statement/Balance Sheet in Chart 4) Prepare closing entries (4 of them) 5) Complete Post Closing Trial Balance in Chart 6) prepare the correctly formatted Income Statement, Statement of Owners Equity, and Balance Sheet for XYZ Co. NOTES: c.1) Assume the owners beginning capital was $0.00

2 XYZ Co. Unadjusted Adjusted Trial Balance Adjustments Trial Balance No Account Title Dr Cr Dr Cr Dr Cr 101 Cash 185,600 106 A/R 5,000 1 10 Prepaid Insurance 12,000 115 Supplies 8,400 183 Building 120,000 185 Accumulated Depreciation Building 201 A/P 25,000 221 Salary Payable 241 Unearned Revenue 12,000 251 Long-Term N/P 100,000 301 Doe, Capital 63,000 302 Doe, Withdrawals 7,000 01 Fees Earned 175,000 622 Salaries Expense 32,000 632 Insurance Expense 650 Office Supplies Expense 5,000 670 Depreciation Expense Totals 375.000 375,000 Net Income Totals