Other Data Office equipment is being depreciated over 60 months (5 years). At December 31, 2007. $2,500 of previously unearned agency fees had been earned. Accrued but unrecorded and unpaid salary expense totals $1,360 at December 31, 2007. The agency pays rent quarterly (every three months) The most recent advance payment of $1,800 was made November 1, 2007. The next payment of $1,800 will be made on February 1, 2008. Accrued but unrecorded and uncollected agency fees earned total $3,000 at December 31, 2007. Office supplies on hand at December 31, 2007. total $530. On September 1,2007 the agency purchased a six- month insurance policy for $750. On December 1, 2007 the agency borrowed $6,000 by signing a three-month 9 percent note payable The entire amount borrowed, plus interest, is due March 1, 2008. Accrued income taxes payable for the entire year ending December 31, 2007 total $3,900. The full amount is due early in 2008. Instructions Prepare the necessary adjusting journal entries on December 31, 2007, Also prepare an adjusted trial balance dated December 31, 2007 From the adjusted trial balance prepared in put a prepare an income statement and statement of retained earning for the year ended December 31,2007, Also prepare the company's balance sheet dated December 31, 2007 Prepare the necessary year-end closing entries. Prepare an after-closing trial balance Assume that the agency purchased all of its office equipment when it first began business activities. For how many months has the agency been in operation? Other Data Office equipment is being depreciated over 60 months (5 years). At December 31, 2007. $2,500 of previously unearned agency fees had been earned. Accrued but unrecorded and unpaid salary expense totals $1,360 at December 31, 2007. The agency pays rent quarterly (every three months) The most recent advance payment of $1,800 was made November 1, 2007. The next payment of $1,800 will be made on February 1, 2008. Accrued but unrecorded and uncollected agency fees earned total $3,000 at December 31, 2007. Office supplies on hand at December 31, 2007. total $530. On September 1,2007 the agency purchased a six- month insurance policy for $750. On December 1, 2007 the agency borrowed $6,000 by signing a three-month 9 percent note payable The entire amount borrowed, plus interest, is due March 1, 2008. Accrued income taxes payable for the entire year ending December 31, 2007 total $3,900. The full amount is due early in 2008. Instructions Prepare the necessary adjusting journal entries on December 31, 2007, Also prepare an adjusted trial balance dated December 31, 2007 From the adjusted trial balance prepared in put a prepare an income statement and statement of retained earning for the year ended December 31,2007, Also prepare the company's balance sheet dated December 31, 2007 Prepare the necessary year-end closing entries. Prepare an after-closing trial balance Assume that the agency purchased all of its office equipment when it first began business activities. For how many months has the agency been in operation
