Michael and Sons' Law Offices opened on January 1, 2018.

During the first year of business, the company had the following transactions:

January 2: The owners invested $ 350 comma 000$350,000 (the par value of the stock) into the business and acquired 35 comma 00035,000 shares of common stock in return.
times	January 15: MichaelMichael and Sons' bought an office building in the amount of $ 95 comma 000$95,000. The company took out a long-term note from the bank to finance the purchase.
times	February 12: MichaelMichael and Sons' billed clients for $ 85 comma 000$85,000 of services performed.
times	March 1: MichaelMichael and Sons' took out a two-year insurance policy, which it paid cash for in the amount of $ 23 comma 400$23,400.
times	March 10: MichaelMichael collected $ 26 comma 000$26,000 from clients toward the outstanding accounts receivable balance.
times	May 13: MichaelMichael received cash payments totaling $ 230 comma 000$230,000 for legal serviceslong dash$ 59 comma 000$59,000 was for services previously billed to customers on February 12 and the remainder was for services provided in May not yet recorded.
times	June 10: MichaelMichael purchased office supplies in the amount of $ 15 comma 000$15,000, all on credit.
times	July 15: MichaelMichael paid wages of $ 12 comma 000$12,000 in cash to office staff workers.
times	August 8: MichaelMichael paid off the $ 15 comma 000$15,000 balance owed to a supplier for the purchase made on June 10.
times	September 3: MichaelMichael and Sons' purchased $ 50 comma 000$50,000 of office supplies in cash.
times	September 20: The company paid $ 15 comma 000$15,000 cash for utilities.
times	October 1: MichaelMichael and Sons' paid wages in the amount of $ 32 comma 000$32,000 to office workers.
times	December 1: MichaelMichael and Sons' received cash payments from clients in the amount of $ 290 comma 000$290,000 for services to be performed in the upcoming months.
times	December 31: MichaelMichael declared and paid a $ 14 comma 000$14,000 dividend.

Michael and Sons' Law Offices

Unadjusted Trial Balance

At December 31, 2018

Account

Debit

Credit

Cash

$734,600

Office Supplies

65,000

Prepaid Insurance

23,400

Building

95,000

Unearned Service Revenue

$290,000

Notes Payable

95,000

Common Stock

350,000

Dividends

14,000

Service Revenue

256,000

Wage Expense

44,000

Utilities Expense

15,000

Total

$991,000

$991,000

a.	Journalize and post adjusting journal entries for MichaelMichael and Sons' based on the following additional information:
	times	Of the cash payments received from customers on December 1, half of these services were performed in December and half relates to future services to be rendered in the following year.
	times	Ten months of the insurance policy expired by the end of the year.
	times	Depreciation for the full year should be recorded on the building purchased. The building has a 20-year life and no residual value. Depreciation will be recorded on a straight-line basis.
	times	A total of $ 18 comma 000$18,000 of office supplies remains on hand at the end of the year.
	times	Interest expense in the amount of $ 7 comma 600$7,600 should be accrued on the note payable.
	times	Wages in the amount of $ 24 comma 000$24,000 must be accrued at year end to be paid in January.
b.	Prepare an adjusted trial balance as of December 31.
c.	Prepare a single-step income statement, a statement of shareholders' equity, and a balance sheet.