Below are the transactions of the company in December $2022$:

Dec $1$ Issued $1,000$ shares of share capital in exchange for $$10,000$ cash

$2$ Borrowed $$11,000$ from bank by issuing $6-$month notes payable.

$3$ Purchased office supplies that cost $$500$ with $$230$ cash and the

balance on account.

$7$ Paid the dividend of $$400$ declared in October $2022$ which become

due on $7$ December $2022$ to shareholders.

$10$ Billed clients $$3,560$ for agency service performed, with $$2,000$

collected immediately by cash and the balance due in next month.

$13$ Received $$2,000$ from clients in advance for service to be conducted

over the next few months.

$17$ Collected fees receivable of $$5,800$ from a client.

$21$ Issued a check in full payment of the office supplies purchased on $3$

December.

$26$ Declared a dividend of $$400$ to be paid on $24$ February $2023.$

$30$ Paid December$$s salary expense of $$1,790$ and settled all salary

payable outstanding.

Instructions

$($a$)$ Journalize the December transactions.

$($b$)$ Post the journal entries to the T$-$accounts.

$($c$)$ Prepare an unadjusted trial balance at $31$ December $2022.$

$($d$)$ Refer to the following information, journalize adjusting entries for the month of

December $2022.$

$1.$ Records show that $$4,200$ of cash receipts originally recorded as Unearned

agency fees had been earned as of $31$ December.

$2.$ Office Equipment have a useful life of $10$ years, to be depreciated using

straight line method.

$3.$ The company had paid $$2,160$ cash on $1$ April for an annual insurance policy

effective April $1.$

$4.$ The company had paid $$3,000$ cash on $1$ September for a $6-$month rent

effective $1$ September.

$5.$ Accrued but unpaid employee salaries were $$3,150.$

$6.$ A count shows $$720$ of supplies on hand at $31$ December..

$7.$ Agency services performed but unbilled and uncollected at $31$ December

were $$8,300.$

$8.$ A $6-$month $6\%$ note payable was issued on $2$ December $2022,$ with all

interests and the balance to be settled on maturity.

$9.$ The company$$s CPA estimates that income taxes expense for the year is

$$4,200.$

$($e$)$ Prepare an adjusted trial balance at $31$ December $2022.$New Education Agency is a business which provides coaching and consulting service

to students, parents and institutions. Some clients pay in advance with payments

credited to Unearned agency fees; others are billed after services have been performed.

An adjusted trial balance dated November $30,2022$ follows.