I cannot see the solution of c).

10:08

1 4G

Expert Q&A

Done

New Education Agency Is a business which provides

coaching and consulting service to students, parents

and institutions. Some clients pay in advance with

pavments credited to Unearned agency tees; other:

Are DIllAd ATtAr cArVIcAS hAVA hAAn neMOrmed Ar

AdIUSted trial

folloWs.

New Education Agenc

Adiusted Trial Balanct

fu November u

Casn

14 249

21 910

Prepaid rent

1,500

U nexoIred insurance nolicie

Ofice supplies

UnICe

6,125

Accounts payable

2.385

Dividend payable

dOn

Unearned agency fees

7,700

balanes davadle

1,210

Chare canital

40 000

Retained earnings

10.800

DIvicenas

Agency fees earned

R4 940

1 090

1 025

5.500

InsurAnce AynAnsA

CalariAc ArnAnce

19.850

3,350

060

107.910

Below are the transactions of the companv in

December U

Dec 1 Issued 1,000 shares of share capital ir

exchange for $10.000 cash

Dec 2 Borro

wed $11,000 from bank by issuing 6-

month notes pavable. 3 Purchased office supplies

that cost $500 with $230 cash and the

Inalance on account

Dec 7 Paid the dividend of $400 declared in October

2022 which become due on 7 December 2022 to

sharenolgers

Dec 10 Billed clients $3 560 for agencv service

performed, with $2,000 collect

TAG ImmAdIATAY O

each and the halance cue in neyt month

Dec 13 Received $2.000 from clients in advance fol

service to be conaucied over the next few monts

Dec 17 Collected fees receivable of $5.800 from a

clent.

Dec 21 Issued a check in Tull payment or the offIce

supplies purchased on 3 December.

Dec 26 Declared a dividend of $400 to be paid on 24

February 2023. 30 Paid December's salarv expense

of $1.790 and settled all salar

navable outstanding.

(a) Journalize the December transactions.

(b) Post the journal entries to the T-accounts

(c) Prepare an unadiusted trial balance at 31

Idl LATer to the tollowing intormation. lournallz.

adjusting entries for the month ol

December 2022.

1. Records show that $4.200 of cash receipts

rees nd

abeen earned as of 31 lecember

2. Office Equipment have a useful life of 10 years, to

Ine denreciated using straight line method

3. The company had paid S2.160 cash on 1 April for

4. ne

companv had paid $3.000 cash on 1

sAnTember tor a b-month rent e

b AcCruJed out Inaid AmDIovAA salArIAS wArA

431601

6. A count shows $720 of supplies on hand at 31

Decemb

7. Agencv services performed but unbilled and

uncollected ember were

6 00

o. Ab-month 6% note payable was Issued on 2

December 2022, with all interests and the balance tc

be settled on maturity

9. The companv's CPA estimates that income taxes

expense for the vear is $4 200.

lelprepare an adlusted fllance a