Belair Corporation
Unadjusted Trial Balance
January 31, 2015
		Debits		Credits
	Cash	$37,500		$-
	Accounts receivable	12,410		-
	Prepaid insurance	2,400		-
	Supplies	7,113		-
	Equipment	35,000		-
	Accumulated depreciation	-		10,000
	Accounts payable	-		7,569
	Unearned revenue	-		8,500
	Loan payable	-		15,000
	Capital stock	-		24,000
	Retained earnings, Jan. 1	-		15,457
	Revenues	-		43,995
	Salary expense	12,098		-
	Rent expense	13,000		-
	Office expense	2,500		-
	Dividends	2,500		-
		$124,521		$124,521

Belair Corporations equipment had an original life of 140 months, and the straight-line depreciation method is used. As of January 1, the equipment was 40 months old. The equipment will be worthless at the end of its useful life.

As of the end of the month, Belair Corporation has provided services to customers for which the earnings process is complete. Formal billings are normally set out on the first day of each month for the prior months work. Januarys unbilled work is $25,000.

Utilities used during January, for which bills will soon be forthcoming from providers, are estimated at $1,500.

A review of supplies on hand at the end of the month revealed items costing $3,500.

The $2,400 balance is prepaid insurance was for a 6-month policy running from January 1 to June 30.

The unearned revenue was collected in December of 2014. 60% of that amount was actually earned in January, with the remainder to be earned in February.

The loan accrues interest at 1% per month. No interest was paid in January.

Previously declared and recorded dividend of $2,500 was paid.

JE #	Account	Debit	Credit
1
2
3
4
5
6
7
8

Belair Corporation
Adjusted Trial Balance
January 31, 2015
			Debits				Credits
	Cash
	Accounts receivable
	Prepaid insurance
	Supplies
	Equipment
	Accumulated depreciation
	Accounts payable
	Interest Payable
	Unearned revenue
	Loan payable
	Capital stock
	Retained earnings
	Revenues
	Salary expense
	Rent expense
	Office expense
	Supplies expense
	Insurance expense
	Interest expense
	Utilities expense
	Depreciation expense
	Dividends
			$-				$-
Belair Corporation
Income Statement
For the month ended January 31, 2015
Belair Corporation
Balance Sheet
January 31, 2015

Review the unadjusted trial balance above and prepare adjusting journal entries to record the various described items above. After completing the journal entries, complete the adjusted trial balance above. Lastly, complete the income statement and balance sheet. The balance sheet must balance.