GoodJob Inc. provides employment consulting services. The company adjusts its accounts monthly but performs closing entries annually on December 31. The firms unadjusted trial balance dated December 31, 2020 is shown below.

0. Other data:

   1. Accrued but unrecorded and uncollected consulting fees earned at December 31 amount to: $27500.

   2. The company determined that $16500 of previously unearned consulting fees had been earned at December 31.

   3. Office supplies on hand at December 31 total $330

   4. The company purchased all of its equipment when it first began business. At that time, the estimated useful life of the equipment was six years.

   5. The company prepaid its nine-month rent agreement on June 1, 2020.

   6. The company prepaid its six-month insurance policy on December 1, 2020

   7. Accrued but unpaid salaries total $13200 at December 31,2020.

   8. On September 1, 2020, the company borrowed $66000 by signing an eight-month, 4 percent note payable. The entire amount, plus interest, is due March

GoodJob Inc.

Unadjusted Trial Balance

December 31,2020

Account Debit Credit

Cash 304,150

Accounts Receivable 99,000

Office supplies 880

Prepaid rent. 3,960

Unexpired insurance 1,650

Office equipment 79,200

Accumulated depreciation: office equipment 26,400

Accounts payable 4,400

Notes payable (due 3/1/12) 66,000

Interest payable 660

Income taxes payable 9,900

Dividends payable 3,500

Unearned consulting fees 24,200

Capital stock 220,000

Retained earnings 44,000

Dividends 3,500

Consulting fees earned 550,000

Rent expense 16,170

Insurance expense 2,420

Office supplies expense 4,950

Depreciation expense: office equipment 12,100

Salaries expense 363,000

Utilities expense 5,280

Interest expense 3,300

Income taxes expense 49,500

Totals 949,060 949,8060

Instructions:

1. Prepare the necessary adjusting journal entries on December 31, 2020. Also prepare an adjusted trial balance dated December 31, 2020 (20 points).

2. From the adjusted trial balance prepared in part a, prepare an income statement and statement of retained earnings for the year ended December 31,

   2020. Also prepare the companys balance sheet dated December 31, 2020 (20 points).

3. Prepare the necessary year-end closing entries (15 points).

4. Prepare an after-closing trial balance (15 points).

5. Compute the companys average monthly insurance expense for January through November 2020 (5 points).

6. Compute the companys average monthly rent expense for January through May 2020 (5 points).

7. If the company purchased all of its office equipment when it first incorporated, for how long has it been in business as of December 31, 2020? (5 points).

8. Using the financial statements prepared in part b., evaluate the company s (i) profitability, (ii) liquidity, and (iii) solvency. (15 points).