DIR fit-unadjusted trial balance december 31.2020

1. Records show that 26,200 of cash receipts originally recorded as unearned revenue had been earned as of December 31, 2020.

2. The company purchased a six-month insurance policy on September 1, 2020, for 24.000.

3. On November 1, 2020, the company paid 30.000 for rent through January 31, 2021.

4. Supplies on hand at December 31 amount to 500.

5. All equipment was purchased when the business first formed. The estimated life of the equipment at that time was three years (or 36 months).

6. On April 1, 2020, the company borrowed 100,000 by signing a 12-month, 10 percent note payable. The entire note, plus 12 months accrued

interest, is due on March 1, 2021.

7. Accrued but unrecorded salaries at December 31 amount to 10,000.

8. Estimated income taxes expense for the entire year totals 25,000. Taxes are due in the first quarter of year 2021.

9. At December 31^st. DIR has signed an agreement with Futbol Club Barcelona that states that all Futbol Club Barcelona members will be given access to the Gym for an annual fee of 60.000.

8.-Prepare Trial Balance after closing (10 points)

9.-Prepare Balance Sheet after closing. (10 points)

10-Comment on the profitability and liquidity of the company. (10 points