Burda Alatau Press is a publishing house based in Kazakhstan which is selling 28 different magazines on Kazakhstani market of which 24 are purchased directly from its immediate parent company Burda Russia based in Russian Federation. Some clients pay subscription fees in advance for the magazines, others are billed after magazines have been delivered. Advance payments are credited to an account entitled Unearned Subscription Fees. Adjusting entries are performed on a monthly basis. An unadjusted trial balance dated December 31, 2015, follows. (Bear in mind that adjusting entries have already been made for the first 11 months of 2015, but not for December.)

Other Data

1. Accrued but unrecorded subscription fees earned at December 31 amount to $8,550.
2. Records show that $8,550 of cash receipts originally recorded as Unearned Subscription Fees had been earned as of December 31.
3. Offic

Burda Alatau Press
Unadjusted Trial Balance
December 31, 2015
Cash	145765
Accounts receivable	8000
Office supplies	945
Prepaid rent	4500
Unexpired insurance	570
Office equipment	255600
Accumulated depreciation: office equipment	166850
Accounts payable	6110
Interest payable	1540
Income taxes payable	6450
Note payable	35500
Unearned subscription fees	12660
Capital stock	110000
Retained earnings	35000
Dividends	4000
Subscription fees earned	227000
Office supplies expense	2145
Depreciation expense: office equipment	32175
Rent expense	20450
Insurance expense	3200
Salaries expense	90560
Interest expense	1200
Income taxes expense	32000

4. e supplies on hand at December 31 amount to $145. The company purchased all of its office equipment when it first began business. At that time, the equipment`s estimated useful life was six years (or 72 months).
5. On October 1, 2015, the company renewed its rental agreement paying $6,750 cash for six months rent in advance.
6. On March 1 of the current year, the company paid $2,280 cash to renew its 12-month insurance policy.
7. Accrued but unrecorded salaries at December 31 amount to $8,150.
8. On 1 June 2015, the company borrowed money from the bank by signing a $42,500, 12 percent, 12-month note payable. The entire note, plus 12 months` accrued interest, is due on May 31, 2016.
9. The company`s tax specialist estimates that income taxes expense for the entire year is $36,750.
10. Additional $7,000 dividends have been declared with the payment planned to be made in February 2016.

Instructions

1. For each of the above numbered paragraphs, prepare the necessary adjusting entry (no explanation required).
2. Prepare the company`s adjusted trial balance dated December 31, 2015.
3. Using figures from the adjusted trial balance prepared in b, prepare the Income Statement and Statement of Stockholders equity for the year ended 31 December 2015, and Balance Sheet as at 31 December 2015.
4. Prepare the closing entries required.