FRED SCHWARTZ DANCE STUDIO, INC.

 Trial Balance

December 31, 2002

                                                                                                                 Debits          Credits

            Cash....................................................................................... $ 10,800

            Client’s fees receivable..........................................................     58,000

            Supplies..................................................................................       7,000

            Prepaid studio rent.................................................................       5,000

            Studio equipment...................................................................     96,000

            Accumulated depreciation: studio equipment.......................                       $ 45,000

            Accounts payable...................................................................                            7,000

            Notes payable........................................................................                          25,000

            Interest payable......................................................................                               500

            Unearned client fees..............................................................                          10,000

            Income taxes payable.............................................................                            3,000

            Capital stock..........................................................................                          70,000

            Client fees earned..................................................................                          87,000

            Supply expense......................................................................       6,000

            Salary expense.......................................................................     19,000

            Interest expense ....................................................................          500

            Studio rent expense...............................................................     26,000

            Utilities expense.....................................................................       4,200

            Depreciation expense: studio equipment...............................       9,000

            Income taxes expense............................................................       6,000     ________

                                                                                                            $247,500      $247,500

Other data

Supplies on hand at December 31, 2002, total $2,500.

The studio pays rent quarterly (every 3 months).  The last payment was made November 1, 2002.  The next payment will be made early in February 2003.

Studio equipment is being depreciated over 96 months (8 years).

$250 Interest is yet to be paid.

At December 31, 2002, $4,000 of previously unearned client fees had been earned.

Accrued, but unrecorded and uncollected client fees earned total $700 at Dec 31

Accrued, but unrecorded and unpaid salary expense totals $900 at December 31.

Required: 1) Prepare a 10-column work sheet utilizing the trial balance and adjustments shown above.       .2) Also adjusting and closing entries