Mate Ease is an Internet dating service. All members pay in advance to be listed in the database.

Advance payments are credited to an account entitled Unearned Member Dues. Adjusting entries are performed on a monthly basis. An unadjusted trial balance dated December 31, 2011, follows. (Bear in mind that adjusting entries have already been made for the first 11 months of 2011, but not for December.)

UNADJUSTED TRIAL BALANCE

DECEMBER 31, 2011

Cash $169500

Unexpired insurance 12800

Prepaid rent 14600

Office supplies 2160

Computer equipment 108000

Accumulated depreciation: Computer equipment $ 54000

Accounts payable 4300

Notes payable 90000

Interest payable 6750

Income taxes payable 7500

Unearned member dues 36000

Capital stock 40000

Retained earnings 28000

Client fees earned 508450

Advertising expense 17290

Insurance expense 35200

Rent expense 80300

Office supplies expense 18400

Internet connection expense 24000

Depreciation expense: computer equipment 33000

Salaries expense 239000

Interest expense 6750

Income taxes expense 14000

S775000 $775000

Other Data

1. Records show that $21,000 of cash receipts originally recorded as unearned member dues had been earned as of December 31, 2011.

2. The company purchased a six-month insurance policy on October 1, 2011, for $19,200.

3. On November 1, 2011, the company paid $21,900 for rent through January 31, 2012.

4. Office supplies on hand at December 31 amount to $440.

5. All computer equipment was purchased when the business first formed. The estimated life of the equipment at that time was three years (or 36 months).

6. On March 1, 2011, the company borrowed $90,000 by signing a 12-month, 10 percent note payable. The entire note, plus 12 months' accrued interest, is due on March 1, 2012.

7. Accrued but unrecorded salaries at December 31 amount to $10,500.

8. Estimated income taxes expense for the entire year totals $16,000. Taxes are due in the first quarter of 2012.

Instructions

a. For each of the numbered paragraphs, prepare the necessary adjusting entry (including an explanation).

b. Determine that amount at which each of the following accounts will be reported in the company's balance sheet dated December 31, 2011:

1. Cash 7. Accounts Payable

2. Unexpired Insurance 8. Notes Payable

3. Prepaid Rent 9. Salaries Payable

4. Office Supplies 10. Interest Payable

5. Computer Equipment 11. Income Taxes Payable

6. Accumulated Depreciation: Computer Equipment 12. Unearned Member Dues

it is Adjusting Entries question from accounting