End of period adjustments Allied Architects adjusts its books each month and closes its books at the end of the year The trial balance at January 31, 2010, before adjustments is as follows The following information relates to month end adjustments (a) According to contracts, consulting fees received in advance that were earned in January total $13,500 (b) On November 1, 2009, the company paid in advance for 5 months' advertising in professional journals (c) At January 31, supplies on hand amount to $2,250 (d) The equipment has an original estimated useful life of 4 years Questions Prepare the journal entries for the month end adjustments After the proper adjusting entries are made, what is the balance in the unearned consulting fees account at January 31 Compute the amount to be reported in the January income statement for the following Advertising Expense Supplies Expense What is the book value of the equipment at January 3 after the proper adjusting entry is recorded Prepare the adjusted trial balance and compute the amount of net income or loss to be shown in January income statement (The corporation is subject to income taxes of 25 of taxable income ) Debit Credit as Accounts Receivable Supplies $39,645 27,000 3,375 7,560 4, 800 sin 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

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End-of-period adjustments Allied Architects adjusts its books each month and closes its books at the end of the year. The trial balance at January 31,

End-of-period adjustments Allied Architects adjusts its books each month and closes its books at the end of the year. The trial balance at January 31, 2010, before adjustments is as follows: image text in transcribed The following information relates to month-end adjustments: (a) According to contracts, consulting fees received in advance that were earned in January total $13,500. (b) On November 1, 2009, the company paid in advance for 5 months' advertising in professional journals. (c) At January 31, supplies on hand amount to $2,250. (d) The equipment has an original estimated useful life of 4 years.

Questions

Prepare the journal entries for the month-end adjustments.
After the proper adjusting entries are made, what is the balance in the unearned consulting fees account at January 31?
Compute the amount to be reported in the January income statement for the following:

Advertising Expense
Supplies Expense

What is the book value of the equipment at January 3 after the proper adjusting entry is recorded?
Prepare the adjusted trial balance and compute the amount of net income or loss to be shown in January income statement (The corporation is subject to income taxes of 25% of taxable income. )

Debit Credit as Accounts Receivable Supplies $39,645 27,000 3,375 7,560 4, 800 sin 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