Main task

Powerjob Inc. provides employment consulting services. The company adjusts its accounts monthly but performs closing entries annually on December $31.$ The firm's unadjusted trial balance dated December $31,2022$ is shown below.

Other data:

Accrued but unrecorded and uncollected consulting fee earned at December $31$ totals: $$22500.$

The company determined that $$15000$ of previously unearned consulting fees had been earned at December $31.$

Office supplies on hand at December $31$ total $$310$

The company purchased all of its equipment when it first began business. At that time, the estimated useful life of the equipment was six years.

The company prepaid its nine$-$month rent agreement on June $1,2022.$

The company prepaid its six$-$month insurance policy on December $1,2022$

Accrued but unpaid salaries total $$11500$ at December $31,2022.$

On September $1,2022,$ the company borrowed $$60000$ by signing an eight$-$month, $4$ percent note payable. The entire amount, plus interest, is due March $31,2023.$

PowerJob Inc.

UNADJUSTED TRIAL BALANCE

DECEMBER $31,2022$

Instructions:

a$.$ Prepare the necessary adjusting journal entries on December $31,2022.$ Also prepare an adjusted trial balance dated December $31,2022(20$ points$).$

b$.$ From the adjusted trial balance prepared in part a$,$ prepare an income statement and statement of retained earnings for the year ended December $31,2022.$ Also prepare the company's balance sheet dated December $31,2022(20$ points$).$

c$.$ Prepare the necessary year$-$end closing entries $(15$ points$).$

d$.$ Prepare an after$-$closing trial balance $(15$ points$).$

e$.$ Compute the company's average monthly insurance expense for January through November $2022(5$ points$).$

f$.$ Compute the company's average monthly rent expense for January through May $2022(5$ points$).$

g$.$ If the company purchased all of its office equipment when it first incorporated, for how long has it been in business as of December $31,2022?(5$ points$).$

h$.$ Using the financial statements prepared in part b$.,$ evaluate the company's $($i$)$ profitability, $($ii$)$ liquidity, and $($iii$)$ solvency. $(15$ points$).$