Ken Hensley Enterprises, Inc., is a small recording studio in St. Louis. Rock bands use the studio to mix high-quality demo recordings distributed to talent agents. New clients are required to pay in advance for studio services. Bands with established credit are billed for studio services at the end of each month. Adjusting entries are performed on a monthly basis. Below is an unadjusted trial balance dated December 31 of the current year. (Bear in mind that adjusting entries have already been made for the first 11 months, but not for December.) KEN HENSLEY ENTERPRISES, INC. UNADJUSTED TRIAL BALANCE DECEMBER 31, CURRENT YEAR Cash Accounts receivable Studio supplies Unexpired insurance $ 51,804 97,680 9,120 600 Prepaid studio rent.. 4,800 Recording equipment Accumulated depreciation: recording equipment 108,000 $ 63,000 Notes payable. 19,200 Interest payable 1,008 Income taxes payable 3,840 Unearned studio revenue 11,520 Capital stock 96,000 Retained earnings 45,600 Studio revenue earned 128,400 Salaries expense 21,600 Supplies expense 1,440 Insurance expense.. 3,216 Depreciation expense: recording equipment 19,800 Studio rent expense... 25,200 Interest expense 1,008 Utilities expense 2,820 Income taxes expense 21,480 $368,568 $368,568