On July $31,20$X$1,$ after one month of operation, the general ledger of Michael Domenici, Consultant, contained the accounts and balances given below.

ACCOUNTS AND BALANCES

Cash $ $25,360$ Dr$.$

Accounts Receivable $1,410$ Dr$.$

Supplies $930$ Dr$.$

Prepaid Rent $10,050$ Dr$.$

Prepaid Insurance $2,040$ Dr$.$

Prepaid Advertising $388$ Dr$.$

Furniture $14,397$ Dr$.$

Accumulated Depreciation$$Furniture

Equipment $6,995$ Dr$.$

Accumulated Depreciation$$Equipment

Notes Payable $17,400$ Cr$.$

Accounts Payable $5,200$ Cr$.$

Interest Payable

Unearned Accounting Fees $5,640$ Cr$.$

Michael Domenici, Capital $31,680$ Cr$.$

Michael Domenici, Drawing $2,700$ Dr$.$

Accounting Fees $8,700$ Cr$.$

Salaries Expense $3,900$ Dr$.$

Utilities Expense $255$ Dr$.$

Telephone Expense $195$ Dr$.$

Supplies Expense

Rent Expense

Insurance Expense

Advertising Expense

Depreciation Expense$$Furniture

Depreciation Expense$$Equipment

Interest Expense

ADJUSTMENTS

On July $31,$ an inventory of the supplies showed that items costing $$615$ were on hand.

On July $1,$ the firm paid $$10,050$ in advance for six months of rent.

On July $1,$ the firm purchased a one$-$year insurance policy for $$2,040.$

On July $1,$ the firm paid $$388$ for four months of advertising. The ads began running in July.

On July $1,$ the firm purchased office furniture for $$14,397.$ The furniture is expected to have a useful life of eight years and a salvage value of $$1,725.$

On July $1,$ the firm purchased office equipment for $$6,995.$ The equipment is expected to have a useful life of five years and a salvage value of $$1,775.$

On July $1,$ the firm issued a three$-$month, $6$ percent note for $$9,200.$

On July $1,$ the firm received a consulting fee of $$5,640$ in advance for a one$-$year period.

Required:

Prepare a partial worksheet with the following sections: Trial Balance, Adjustments, and Adjusted Trial Balance. Use the data about the firm$$s accounts and balances to complete the Trial Balance section.

Enter the adjustments described above in the Adjustments section.

Complete the Adjusted Trial Balance section.

Analyze:

By what total amount were the expense accounts of the business adjusted?Partial

Worksheet

Analyze

Complete the partial worksheet.

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