End-of-period adjustments - selected computations

Allied Architects adjusts its books each month and closes its books at the end of the year. The trial balance at January 31, 2018, before adjustments are 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, 2017, 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.

(e) The corporation is subject to income taxes of 25% of taxable income. (Assume taxable income is the same as "income before taxes.")

Prepare the adjusting entries required at January 31.

Post to the Ledger accounts

Prepare the adjusted Trial Balance as of January 31.

Prepare the following Financial Statements: Income Statement, Owners Equity Statement and Balance Sheet.

Debit Credit Cash Accounts Receivable Supplies Prepaid Advertising $39,645 27,000 3,375 7,560 64,800 Accumulated Depreciation: Equipment Unearned Consulting Fees Incom 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 e Taxes Payable .... 28,800 1,080 4,050 $176 310 $176.310