HW BD +36 (Adjusting Entries and Financial Statements) The following are the trial balance and the other infor- mation related to Yorkis Perez, a consulting engineer Credit Cash $ 750 YORKIS PEREZ, CONSULTING ENGINEER TRIAL BALANCE DECEMBER 31, 2014 Debit $ 29,500 Accounts Receivable 49,600 Allowance for Doubtful Accounts Inventory 1,960 Prepaid Insurance 1.100 Equipment 25.000 Accumulated Depreciation-Equipment Notes Payable Owner's Capital Service Revenue Rent Expense Salaries and Wages Expense Utilities Expenses Office Expense 1.080 6.250 7.200 35,010 100,000 9.750 30,500 720 $149.210 $149.210 Problems 147 1. Fees received in advance from clients $6,000 2 Services performed for clients that were not recorded by December 31, 54,900. 3. Bad debt expense for the year is $1430. 4. Insurance expired during the year $480. 5. Equipment is being depreciated at 10% per year. 6 Yorkis Perez gave the bank a 90-day, 10% note for $7.200 on December 1, 2014. 7. Rent of the building is $750 per month. The rent for 2014 has been paid, as has that for January 2015. & Office salaries and wages earned but unpaid December 31, 2014, 52,510. Instructions (a) From the trial balance and other information given, prepare annual adjusting entries as of Decem- ber 31, 2014. (Omit explanations.) (b) Prepare an income statement for 2014, a statement of owner's equity, and a classified balance sheet Yorkis Perez withdrew $17,000 cash for personal use during the year