Aim Higher Inc. provides architectural consulting services. The company adjusts its accounts monthly but performs closing entries annually on December 31. The firms unadjusted trial balance dated December 31, 2021 is shown below.

Other Data

1. Accrued but unrecorded and uncollected consulting fees earned total $25,000 at December 31, current year.
2. The company determined that $15,000 of previously unearned consulting services fees had been earned at December 31, 2021.
3. Office supplies on hand at December 31 total $300.
4. The company purchased all of its equipment when it first began business. At that time, the estimated useful life of the equipment was six years (72 months).
5. The company prepaid its nine-month rent agreement on June 1, 2021.
6. The company prepaid its six-month insurance policy on December 1, 2021.
7. Accrued but unpaid salaries total $12,000 at December 31, 2021.
8. On September 1, 2021, the company borrowed $60,000 by signing an 8-month, 4 percent note payable. The entire amount, plus interest, is due on March 1, 2022.
9. The companys accounting firm estimates that income taxes expense for the entire year is $50,000. The unpaid portion of this amount is due early in the next year.

Instructions:

1. Prepare the necessary adjusting journal entries on December 31, 2021 using the information provided. Use the accounts already listed but create accounts as necessary (payables, expenses etc).
2. Prepare the adjusted trial balance dated December 31, 2021
3. From the adjusted trial balance prepared in part B, prepare an income statement, statement of retained earnings for the year ended December 31, 2021 and the balance sheet, as of December 31, 2021.

276,500 90,000 800 3,600 1,500 72,000 Aim Higher Inc. Unadjusted Trial Balance December 31, 2021 Cash Accounts Receivable Office Supplies Prepaid rent Unexpired insurance Office equipment Accumulated depreciation office equipment Accounts payable Notes payable (due 3/1/22) Interest payable Income taxes payable Dividends payable Unearned consulting fees Capital stock Retained eamings Dividends Consulting fees eamed Rent expense Insurance expense Office supplies expense Depreciation expense: office equipment Salaires expense Utilities expense Interest expense Income taxes expense $ 24,000 4,000 60,000 600 9,000 3,000 22,000 200,000 40,000 3,000 500,000 14,700 2,200 4,500 11,000 330,000 4,800 3,000 45,000 862,600 $ $ 862,600 276,500 90,000 800 3,600 1,500 72,000 Aim Higher Inc. Unadjusted Trial Balance December 31, 2021 Cash Accounts Receivable Office Supplies Prepaid rent Unexpired insurance Office equipment Accumulated depreciation office equipment Accounts payable Notes payable (due 3/1/22) Interest payable Income taxes payable Dividends payable Unearned consulting fees Capital stock Retained eamings Dividends Consulting fees eamed Rent expense Insurance expense Office supplies expense Depreciation expense: office equipment Salaires expense Utilities expense Interest expense Income taxes expense $ 24,000 4,000 60,000 600 9,000 3,000 22,000 200,000 40,000 3,000 500,000 14,700 2,200 4,500 11,000 330,000 4,800 3,000 45,000 862,600 $ $ 862,600