Internet Consulting Service, Inc., adjusts its accounts every month. The companys year-end unadjusted trial balance dated December 31, current year follows. (Bear in mind that adjusting entries already have been made for the first 11 months of current year, but have not been made for December.)

INTERNET CONSULTING SERVICE, INC.
Unadjusted Trial Balance
December 31, Current Year
		Debits				Credits
Cash	$	49,100
Consulting fees receivable		23,400
Prepaid office rent		6,300
Prepaid dues and subscriptions		300
Supplies		600
Equipment		36,000
Accumulated depreciation: equipment					$	10,200
Notes payable						5,000
Income taxes payable						12,000
Unearned consulting fees						5,950
Capital stock						30,000
Retained earnings						32,700
Dividends		60,000
Consulting fees earned						257,180
Salaries expense		88,820
Telephone expense		2,550
Rent expense		22,000
Income taxes expense		51,000
Dues and subscriptions expense		560
Supplies expense		1,600
Depreciation expense: equipment		6,600
Miscellaneous expenses		4,200
	$	353,030			$	353,030

Other Data

1. On December 1, the company signed a new rental agreement and paid three months' rent in advance at a rate of $2,100 per month. This advance payment was debited to the Prepaid Office Rent account.

2. Dues and subscriptions expiring during December amounted to $50.

3. An estimate of supplies on hand was made at December 31; the estimated cost of the unused supplies was $450.

4. The useful life of the equipment has been estimated at five years (60 months) from date of acquisition.

5. Accrued interest on notes payable amounted to $100 at year-end. (Set up accounts for Interest Expense and for Interest Payable.)

6. Consulting services valued at $2,850 were rendered during December to clients who had made payment in advance.

7. It is the custom of the firm to bill clients only when consulting work is completed or, in the case of prolonged engagements, at monthly intervals. At December 31, consulting services valued at $11,000 had been rendered to clients but not yet billed. No advance payments had been received from these clients.

8. Salaries earned by employees but not paid as of December 31 amount to $1,700.

9. Income taxes expense for the year is estimated at $56,000. Of this amount, $51,000 has been recognized as expense in prior months, and $39,000 has been paid to tax authorities. The company plans to pay the $17,000 remainder of its income tax liability on January 15.

Prepare a worksheet for Internet Consulting Service, Inc., dated December 31, current year. (Adjustments are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)

trail balance / adjustmemt / adjusted trail. balance/income statement / balance sheet

debit / credit -debit / credit- debit / credit- debit / credit- debit / credit