DO NOT UNSTAPLE

On the attached worksheet, you will find the UNADJUSTED trial balance of LADD AGENCIES for its year ended December $31,2014.$ Ms$.$ Ladd began her own detective agency in January $2013.$ She hired $2$ cilhor female detectives to work with her, along with a personal secretary named Mr$.$ Spelling. In discussitin witi Ms$.$ Ladd, you discover the following about LADD AGENCIES:

The office supplies were counted on December $31,2013$ witha cost value of $$1,000\mathrm{.}00.$ During $2014,$ the business purchased $$3,250\mathrm{.}00$ of office supplies. The office supplies were counted on December $31,2014$ with a cost value of $$1,200\mathrm{.}00.$

The bookkeeper is paid $$2,000$ every two weeks. She was last paid on December $24,2014,$ so at December $31,2014$ she is owed one week's wages. She will be paid $$2,000$ on January $7,2015$ for the two$-$week period ended January $7,2015.$

Computer equipment was purchased on November $1,2014$ for $$25,000.$ The business plans to use the computer equipment for $3$ years, at which time its salvage$/$residual value is expected to be $$7,000.$ In the year that a capital asset is purchased, depreciation is recorded to the nearest whole month.

Ms$.$ Ladd has informed you that a billing from the Agency for services provided to Mr$.$ Charlie in the amount of $$4,000$ has been mailed to him, but not recorded in the accounts of the business because the money was not received by December $31,2014.$ Mr$.$ Charlie has promised to pay in January $2015.$

The December $2014$ telephone bill for $$300$ was received in the mail on January $5,2015,$ so it was not paid before then, nor recorded in the unadjusted trial balance dated December $31,2014.$

Insurance costing $$2,400$ was purchased on September $1,2014$ for the period October $1,2014$ through September, $2015.$

Ladd Agencies arranged a five$-$year note payable in order to purchase the equipment. Interest for December $2014$ calculated at the rate of $1\%$ per month on the loan balance will be paid on January $2,2015.$ The loan calls for principle repayments of $$5,000$ per year each January $2$ beginning January $2,2015.$

In reviewing the December $2014$ deposits to the bank account, you find a cheque that was received from BAD Co$.$ for $$1,000.$ The money was credited to Detective Fees earned when it was received and the Agency had NOT completed the required work by December $31,2014.$

In December $2013,$ the business prepaid its rent through February $2014.$ Monthly rent is $$1,000$ per month. In December $2014,$ the company prepaid rent through March $2015.$

SUBSEQUENT GENERAL JOURNAL ENTRY

REQUIRED $-$ COMPLETE THE FOLLOWING FOR LADD AGENCIES:

Prepare adjusting journal entries in proper general journal form for the number $1-9$ above on the attached general journal page $(27$ marks$).$

Enter the adjusting joumal entries to the attached adjusting entries to the adjustments column on the attached trial balance $(9$ marks$).$

Complete the adjusted trial balance columns on the attached trial balance $(5$ marks$).$

Prepare the subsequent general joumal entry for number $10$ above to record the payment of wages on January $7,2015($see number $2$ above$)(3$ marks$)$

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