BALA LEGAL SERVICE

TRIAL BALANCE

DECEMBER 31, 2004

ACCOUNTS NO. ACCOUNT TITLES DEBIT CREDIT

? CASH 75,000

OFFICE SUPPLIES 8,000

PREPAID INSUANCE 12,000

OFFICE EQUIPMENT 150,000

COMPUTER EQUIPMENT 60,000

NOTES PAYABLE 50,0000

ACCOUNTS PAYABLE 5,000

BALA, CAPITAL 114,000

BALA, WITHDRAWAL 35,000

CONSULTING REVENUES 390,000

RENT EXPENSE 50,000

SALARIES EXPENSE 120,000

TELEPHONE EXPENSE 10,000

UTILITIES EXPENSE 39,000

TOTAL 559,000 559,000

Information for the year end adjustments

a. Office supplies on hand at year end amounted to 3,000

b. On jan 1 of the current year. bala purchased office equipment which cost 150,000 with an expected life of 5 year and no salvage value.

c. Computer equipment costing 60,000 with an expected life of three years and no salvage value was purchased on july 1 of the current year

d. a premium of 12,000 for a one year insurance policy was paid on dec 1

e. salvage earned by legal aide, which have not yet been paid, amounted to 3,000

required:

Journalize the adjusting entrie

prepaire unadjusted trial balance

Prepare financial statement (income statement, statement of equity and balance sheet)

?