Other data: 1. Accrued but unrecorded and uncollected consulting fee earned at December 31 totals: $22500.

2. The company determined that $15000 of previously unearned consulting fees had been earned at December 31.

3. Office supplies on hand at December 31 total $310 4. The company purchased all of its equipment when it first began business. At that time, the estimated useful

life of the equipment was six years.

5. The company prepaid its nine-month rent agreement on June 1, 2022.

6. The company prepaid its six-month insurance policy on December 1, 2022

7. Accrued but unpaid salaries total $11500 at December 31,2022.

8. On September 1, 2022, the company borrowed $60000 by signing an eight-month, 4 percent note payable. The entire amount, plus interest, is due March 31, 2023.

Instructions: a. Prepare the necessary adjusting journal entries on December 31, 2022. Also prepare an adjusted trial

balance dated December 31, 2022 (20 points).

From the adjusted trial balance prepared in part a, prepare an income statement and statement of retained earnings for the year ended December 31, 2022. Also prepare the companys balance sheet dated December 31, 2022 (20 points).

Prepare the necessary year-end closing entries (15 points).

Prepare an after-closing trial balance (15 points).

Compute the companys average monthly insurance expense for January through November 2022 (5

points).

Compute the companys average monthly rent expense for January through May 2022 (5 points).

If the company purchased all of its office equipment when it first incorporated, for how long has it

been in business as of December 31, 2022? (5 points).

h. Using the financial statements prepared in part b., evaluate the company s (i) profitability, (ii) liquidity, and (iii) solvency. (15 points).

unadjusted trial balance debit credit accounts cash $ 276 500,00 accounts receivable $ office supplies $ 90 000,00 800,00 prepaid rent $ 3 600,00 unexpired insurance $ 1 500,00 office equipement $ 72 000,00 accumulated depreciation equipement $ 24 000,00 accounts payable $ 4 000,00 notes payable due 31.12.22 (4%) $ 60 000,00 interest payable $ 600,00 income taxes payable dividends payable unearned consulting fees capital stock $ 9 000,00 $ 3 000,00 $ 22 000,00 $ 200 000,00 retained earnings $ 40 000,00 dividends $ 3 000,00 consulting fees earned $ 500 000,00 rent expense $ 14 700,00 insurance expense $ 2 200,00 depreciation expense: office expense $ 4 500,00 office supplies expense $ 11 000,00 salaries expense $ 330 000,00 utilities expense $ 4 800,00 interest expense $ 3 000,00 income taxes expense $ 45 000,00 Totals $ 862 600,00 $ 862 600,00