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Next Job Inc provided employment consulting services. The company adjustes its accounts monthly but performs closing entries annually on the 31 December. The firms unadjusted

Next Job Inc provided employment consulting services. The company adjustes its accounts monthly but performs closing entries annually on the 31 December. The firms unadjusted trial balance dated 31December is shown as follows:

Other data:

  1. Accrued but unrecorded and uncollected consulting fees earned total R25 000 at 31 December 2022
  2. The company determine that R15 000 of previously unearned consulting fees has been earned at 31 December 2022
  3. Office supplies on hand at 31 December 2022
  4. The company purchases all of its equipment when it first began business. At the time the estimated useful life of the equipment was six years
  5. The company prepaid its nine-month rental agreement on 1June 2022
  6. The company prepaid its six-month insurance policy on 1 December 2022.
  7. Accrued but unpaid salaries total R12,000 at 31 December 2022
  8. On 1September 2022, the company borrowed R60,000 by signing an eight-month, 4 percent note payable. The entire amount, plus interest, is due on 1 March 2023
  9. The companys external auditors estimates that income taxes expense for the entire year is R50,000. The unpaid portion of this amount is due early in 2023

Original TB DebitCreditCash276 500 Account Receivable90 000 Office Supplies800 Prepaid Rent3 600 Prepaid Insurance1 500 Office Equipment72 000 Accumu Depreciation 24 000Account Payable 4 000Notes Payable( Liability) 60 000Interest Payable 600Income taxes payable 9 000Dividends Payable 3 000Unearned consulting fees 22 000Ordinary shares 200 000Retained earnings 40 000Dividends Expense3 000 Consulting fees earned 500 000Cost of Goods Rent expense14 700 Insurance Expense2 200 Office supplies expense4 500 Depreciation expense: Office equipment11 000 Accrued Revenue Salaries Expense330 000 Utilities Expense4 800 Interest Expense3 000 Income taxes expense45 000 862 600862 600

Instructions

  1. Prepare the necessary adjusting journal entries on 31 December 2022, in anticipation of preparing the year-end financial statements

  1. Prepare an income statement and statement of retained earnings for the year ended 31 December 2022, as well as the companys balance sheet dated 31 December 2022.

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