Applying the Entire Accounting Cycle Rhoades Tax Services began business on December 1, 2018. Its December transactions are as follows. Dec. 1 Rhoades invested $20,000 in the business in exchange for common stock. 2 Paid $1,200 cash for December rent to Bomba Realty. 2 Purchased $1,080 of supplies on account. 3 Purchased $9,500 of office equipment; paying $4,700 cash with the balance due in 30 days. 8 Paid $1,080 cash on account for supplies purchased December 2. 14 Paid $900 cash for assistant's wages for 2 weeks' work. 20 Performed consulting services for $3,000 cash. 28 Paid $900 cash for assistant's wages for 2 weeks' work. 30 Billed clients $7,200 for December consulting services. 31 Paid $1,800 cash for dividends. 1. Supplies available at December 31 are $710. 2. Accrued wages payable at December 31 are $270. 3. Depreciation for December is $120. 4. Rhoades has spent 30 hours on an involved tax fraud case during December. When completed in January, his work will be billed at $75 per hour. (It uses the account Fees Receivable to reflect amounts earned but not yet billed.) Then post adjusting entries to their T-accounts. Unadj. Bal. Cash (A) 12,420 Accounts Payable (L) Unadj. Bal. 4,800 Unadj. Bal. Supplies (A) 1,080 1 20,000 x 0 1 1,080 x 0 1 0 0 x 2 0 1,200 x 2 0 1,080 x 2 1,080 x 0 3 0 4,700 x 3 0 0 3 0 0 4 0 1,080 x 4 0 4,800 x 4 0 0 Adj. Bal. 0 x 900 x Adj. Bal. 0 0 % Adj. Bal. 0 x 0 5 0 900 x 5 0 0 5 0 0 6 3,000 x 1,800 x 6 0 0 6 0 Final Bal. 12,420 0 Final Bal. 4,800 Final Bal. 1,080 x Office Equipment (A) Fees Receivable (A) Consulting Reveune Unadj. Bal. 9,500 Unadj. Bal. 1 0 0 1 7,200 0 Unadj. Bal. 10,200 2 0 0 2 0 3 9,500 x 0 3 4 0 0 4 7,200 x Adj. Bal. 0 % 0 Adj. Bal. 0 % 5 0 0 5 0 oooooo 0 1 0 3,000 x 0 2 0 7,200 x 3 0 0 4 0 0 x 0 Adj. Bal. 0 0 x 6 0 6 0 0 0 5 0 x 6 0 Final Bal. 9,500 Final Bal. 7,200 x Final Bal. 0 10,200 x Depreciation Expense Accumulated Depreciation (XA) Supplies Expense Unadj. Bal. Unadj. Bal. Unadj. Bal. 1 0 0 0 1 0 x 2 0 0 2 0 0 2 0 0 3 0 x 0 3 0 0 x 3 0 0 4 0 0 4 0 0 4 0 0 Adj. Bal. 0 x 0 Adj. Bal. 0 0 % Adj. Bal. 0 x 0 5 0 0 5 0 0 5 0 6 0 0 x 6 0 0 6 0 x Final Bal. 0 0 Final Bal. 0 0 * Final Bal. 0 0 Unadi Bal D Wages Expense (E) Rent Expense (E) Common Stock (SE) 1.800 Unadi Bal 1.200 Unadi Bal 20.000 SMB 9+ 1 Unadj. Bal. Wages Expense (E) 1,800 900 x Unadj. Bal. Rent Expense (E) Common Stock (SE) 1,200 Unadj. Bal. 20,000 1 0 0 1 0 0 2 900 x 0 2 0 0 2 0 0 3 0 0 3 0 0 3 0 0 4 0 0 4 0 0 4 0 0 Adj. Bal. 0 % 0 Adj. Bal. 0 x 0 Adj. Bal. 0 x 5 0 0 5 0 0 5 0 0 6 0 0 % 6 0 0 x 6 0 0 Final Bal. 0 0 Final Bal. 0 0 Final Bal. 0 0 x Retained Earnings (SE) Wages Payable (L) Unadj. Bal. 1 2 1,800 2,070 x Unadj. Bal. 12,450 x 1 0 0 1,200 x 0 2 0 0 x 3 370 x 0 3 0 0 4 120 x 0 4 0 0 Adj. Bal. 1,800 0 Adj. Bal. 0 0x 5 0 0 x 5 0 0 6 0 % 6 0 0 Final Bal. 0 0 % Final Bal. 0 0 x