Moyamba Inc. has been an operation for six months and it adjusts and closes its accounts at the end of each month. The unadjusted trial balance at December 31, 2020 is listed below: the debits and credits are to be created by you, as these numbers are not listed by debits and credits. You do not have to recreate the unadjusted trial balance, but you will need the total for each account to create the adjusted trial balance.

The following information related to month and adjustments:

A. The company CPA has estimated the total income tax for December 2020 is 30% of income before taxes which amounted to $95,100.

B. Office supplies on hand December 30, amounted to $20,000.

C. On November 1, 2020 MOYANBA Inc. prepaid $96,000 for rent for 6months.

D. Many patients pay in advance for major medical procedures; fees of $30,000 we earned during the month of December

E. Salaries earned by employees during the last week and a half for the month of December were not recorded and not paid amounted to $38,000.

F. Accounting services performed during the last week of the month of December but not yet billed or recorded amounted to $62,000.

G. The useful life of the equipment was estimated to be 8 years with a $40,000 residual value.

H. On December 1, 2020 the company borrowed money from the bank by signing a $24,000, 8%, 60 months (5 years) note payable. The entire note plus 60 months interest is due on November 30, 2025.

Requirements:

A. For each of the above numbered paragraphs, prepare (journalize) the adjusting entries required at December 30, 2020 including an explanation

B. Prepare the companies adjusting child balance dated December 30, 2020.

C. Prepare the income statement.

D. Show the effects of transactions A through H on the income, statement and balance sheet after the adjustments were made.

Use the following (Increase=I, Decrease=D and Not Effect = NE)

Income statement: revenue - expenses= Net income

Balance sheet: asset=Liability+Owners equity

Accounts	Amounts
Account payable	$68,700
Accumulated depreciation equipment	$50,000
Capital stock	$750,000
Cash	$85,000
Dividend	$20,000
Income tax account	$23,460
Insurance expense	$60,000
Land	$600,000
Accounting fee earned	$500,000
Account receivable	$25,700
Equipment	$1,000,000
Notes payable	$240,000
Office supplies	$60,000
Prepaid rent	$80,000
Retaining earning	$268,540.000
Salary expense	$13,000
Service expense	$22,000
Unearned revenue	$65,000
Total:	3,931,400