Govind Enterprises is a small photo studio in Melbourne. Theatre productions use the studio to mix high-quality demo recordings. New clients are required to pay in advance for studio services. Theatre productions with established credit are billed for studio services at the end of each month. Adjusting entries are performed monthly. An unadjusted trial balance dated December 31, year 1, follows. (Bear in mind that adjusting entries already have been made for the first 11 months of year 1, but not for December.) Govind Enterprises Unadjusted Trial Balance December 31, Year 1 Cash 50,154 Accounts receivable 99,330 Studio supplies 9,120 Prepaid insurance 600 Prepaid studio rent 4,800 Recording equipment 108,000 Accumualted depreciation: recording equipment 63,000 Notes payable Interest payable 19,200 1,008 Income taxes payable 3,840