Clint Stillmore operates a private investigating agency called Stillmore Investigations Some clients pay in advance for services, others are billed after services have been performed. Advance payments are credited to an account entitled Uneared Retainer Fees. Adjusting entries are performed on a monthly basis. An unadjusted trial balance dated December 31, 2011, follows. (Bear in mind that adjusting entries have already been made for the first 11 months of 2011, but not for December.) Other Data 1. Accrued but unrecorded client fees earned at December 31 amount to $1,500 2. Records show that $2,500 of cash receipts originally recorded as Unearned Retainer Fees had been earned as of December 31 3. Office supplies on hand at December 31 amount to $110. 4. 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, 2011, the company renewed its rental agreement paying $1,800 cash for six months' rent in advance 6. On March 1 of the current year, the company paid $1,080 cash to renew its 12 month insurance policy 7. Accrued but unrecorded salaries at December 31 amount to $1,900 8. On June 1, 2011, the company borrowed money from the bank by signing a $9,000, 8 percent 12-month note payable. The entire note, plus 12 months' accrued interest, is due on May 31, 2012 9. The company's CPA estimates that income taxes expense for the entire year is $7,500 12:13 Cont. Pg 2 STILLMORE INVESTIGATIONS UNADJUSTED TRIAL BALANCE DECEMBER 31, 2011 Cash Accounts receivable Office Supplies Prepaid ron Unexpired insurance Office equipment Accumulated depreciation office equipment Accounts payable Intorst payable Income taxes payable Note payable Unoamned retainers Capital stock Retained oaming Dividends Clontoosamed Office Supplies exponce Depreciation expense office qumont Ront sponso Insurance expense Sales o ponto Interest expense Income taxes opone Totals. $ 46,585 2.000 205 1,200 270 54,000 $ 35,250 1,400 360 1.750 9,000 3.500 30,000 8,000 1.000 60.000 605 8.250 5,775 1,010 27.100 360 8,000 $149,200 $140200 Instructions a. For each of the above numbered paragraphs, prepare the necessary adjusting entry 12:13 Pg3 (including an explanation). b. Prepare the company's adjusted trial balance dated December 31, 2011