Alpine Expeditions operates a mountain climbing school in Colorado. Some clients pay in advance for services; others are billed after services have been performed. Advance payments are credited to an account entitled Unearned Client Revenue. Adjusting entries are performed on a monthly basis. An unadjusted trial balance dated December 31, year 1, follows. (Bear in mind that adjusting entries have already been made for the first 11 months of year 1, but not for December.)

ALPINE EXPEDITIONS Unadjusted Trial Balance December 31, Year 1
Cash	$	13,900
Accounts receivable		78,000
Unexpired insurance		18,000
Prepaid advertising		2,200
Climbing supplies		4,900
Climbing equipment		57,600
Accumulated depreciation: climbing equipment				$	38,400
Accounts payable					1,250
Notes payable					10,000
Interest payable					150
Income taxes payable					1,200
Unearned client revenue					9,600
Capital stock					17,000
Retained earnings					62,400
Client revenue earned					188,000
Advertising expense		7,400
Insurance expense		33,000
Rent expense		16,500
Climbing supplies expense		8,400
Repairs expense		4,800
Depreciation expense: climbing equipment		13,200
Salaries expense		57,200
Interest expense		150
Income taxes expense		12,750
	$	328,000		$	328,000

Other Data

1. Accrued but unrecorded fees earned as of December 31 amount to $6,400.
2. Records show that $6,600 of cash receipts originally recorded as unearned client revenue had been earned as of December 31.
3. The company purchased a 12-month insurance policy on June 1, year 1, for $36,000.
4. On December 1, year 1, the company paid $2,200 for numerous advertisements in several climbing magazines. Half of these advertisements have appeared in print as of December 31.
5. Climbing supplies on hand at December 31 amount to $2,000.
6. All climbing equipment was purchased when the business first formed. The estimated life of the equipment at that time was four years (or 48 months).
7. On October 1, year 1, the company borrowed $10,000 by signing an 8-month, 9 percent note payable. The entire note, plus 8 months accrued interest, is due on June 1, year 2.
8. Accrued but unrecorded salaries at December 31 amount to $3,100.
9. Estimated income taxes expense for the entire year totals $14,000. Taxes are due in the first quarter of year 2.