P4-4B Allesnik Advertising Agency was founded in January 2017. Presented here are both the adjusted and unadjusted trial balances as of December 31, 2017.

ALLESNIK ADVERTISING AGENCY

Trial Balance

December 31, 2017

			Unadjusted											Adjusted
Cash			Dr.						Cr.					Dr.						Cr.
	$		11,000									$		11,000
Accounts Receivable			16,000											19,000
Supplies			9,400											7,000
Prepaid Insurance			3,350											1,790
Equipment			60,000											60,000
Accumulated Depreciation
Equipment					$				25,000							$				30,000
Notes Payable									8,000											8,000
Accounts Payable									2,000											2,000
Interest Payable									0											560
Unearned Service Revenue									5,000											3,100
Salaries and Wages Payable									0											820
Common Stock									20,000											20,000
Retained Earnings									5,500											5,500
Dividends			10,000											10,000
Service Revenue									57,600											62,500
Salaries and Wages Expense			9,000											9,820
Insurance Expense														1,560
Interest Expense														560
Depreciation Expense														5,000
Supplies Expense														2,400
Rent Expense			4,350											4,350
		$	123,100		$				123,100				$	132,480		$				132,480

Instructions

(a)Journalize the annual adjusting entries that were made.

(b) Prepare an income statement and a retained earnings statement for the year ended December 31, and a classified balance sheet at December 31.