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Can you help me to solve for this question? The following Trial Balance of Euroconsultants S.A. is given to you. You know that the company
Can you help me to solve for this question?
The following Trial Balance of Euroconsultants S.A. is given to you. You know that the company adjusts its books each month and closes its books at the end of the year. The trial balance at January 31, 2019, before adjustments is as follows: Credit Debit $39,645 27.000 3,375 7,560 64,800 Cash Accounts Receivable. Supplies Prepaid Advertising Equipment Accumulated Depreciation Equipment Unearned Consulting Fees Income Taxes Payable Capital Stock Retained Earnings Consulting Fees Earned Salaries Expense Utilities Expense Rent Expense $22,500 17,550 15.840 18,000 23,850 78,570 28,800 1,080 4,050 $176.310 $176.310 Your manager gives you the following information related to the month-end adjustments: a) Consulting fees received in advance, according to signed contracts, and were earned in January were equal to a total of $13,500. b) The company paid in advance for 5 months' advertising, on the 1st of November 2018, (remaining prepaid advertisement amount before adjustments covers 3 remaining months). c) On the 31st of January 2019, supplies on hand (remaining supplies) amount to $2,250. d) The useful life of the company's equipment was originally estimated to be 4 years. e) The corporation is subject to income taxes of 25% of taxable income. (Assume taxable income is the same as "income before taxes" and use the 25% rate to estimate the taxes that the company will have to pay) Questions: A. What is the balance in the Unearned Consulting Fees account on the 31st of January, after the proper adjusting entry is made? B. What are the amounts of the Advertising Expense and the Supplies Expense accounts to be reported in the January Income Statement? C. After the proper adjusting entry is recorded, what is the Book Value of the equipment on the 31st of January? D. Present the Income Statement and compute the amount of Net Income or Loss to be shown in the January Income StatementStep by Step Solution
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