October 1: Stockholders invest $100,000 cash in an advertising venture to be known as Pioneer Advertising Agency Inc. Investors receive no-par shares of common stock (credit entire proceeds to Common stock).

October 1: Pioneer Advertising purchases office equipment costing $50,000 by signing a 3-month, 12%, $50,000 note payable.

October 2: Pioneer Advertising receives a $12,000 cash advance from R. Knox, a client, for 3-months of advertising services that will be completed evenly October through December ($4,000/month).

October 3: Pioneer Advertising pays $9,000 office rent, in cash, for October.

October 4: Pioneer Advertising pays $6,000 for a one-year insurance policy that will expire next year on September 30.

October 5: Pioneer Advertising purchases, for $25,000 on account, advertising supplies from Aero Supply.

October 20: Pioneer Advertisings board of directors declares and pays $5,000 cash dividend to stockholders.

October 26: Paid cash for salaries and wages of $40,000.

October 31: Pioneer completes $100,000 of advertising services in October for Copa Company. Copa pays $28,000 in cash, and Pioneer bills Copa Company for the remaining $72,000.

Eight adjusting entries are required before Pioneer can prepare October financial statements. For 3 of the adjustments sufficient information is available in the above October transactions (interest payable on the note, unearned revenue now earned, prepaid insurance expired). For the other 5, the information below is provided.

An inventory shows $10,000 of supplies on hand at October 31.

The Office Equipment has an estimated useful life of 10 years and salvage value of $2,000. Use straight-line depreciation.

Advertising services of $2,000 were completed late in October. The bookkeeper at Pioneer

did not have time to bill the client, nor record anything regarding these services as of October 31.

Of the accounts receivable at October 31, it is estimated that $1,600 will be uncollectible.

Since being paid on October 26, employees have earned wages and salaries of $6,000.

Required: journalize & post adjusting entries and prepare an adjusted trial balance as of October 31. Check figure for the trial balance footings: dr=cr=297,500.