Part B Sam & Sammy Corporation is engaged in providing private investigating agency service. Adjusting entries are performed on a monthly basis. An unadjusted trial balance dated 31 December 20X1 is shown as follow: Semester 1 2021/22 Page 1 Credit $ Debit $ 40,585 2,000 205 1,200 270 54,000 Cash Accounts receivable Office Supplies Prepaid rent Unexpired insurance Office equipment Accumulated depreciation: office equipment Note payable Accounts payable Interest payable Income tax payable Unearned service revenue Shares capital Retained earnings Dividends Client fees earned Office supplies expense Depreciation expense: office equipment Rent expense Insurance expense Salaries expense Interest expense Income taxes expense Total 35,250 9,000 1,400 360 1,750 3,500 30,000 8,000 1,000 60,000 605 8,250 5,775 1,010 27,100 360 6,900 149,260 149,260 Information on adjusting entries: 1. Accrued but unrecorded client fees earned at 31 December amount to $1,500. 2. Records show that $2,500 of cash receipts originally recorded as unearned service fees had been earned as at 31 December. 3. Office supplies on hand at 31 December amount to $110. 4. Estimated useful life of the equipment was six years. 5. On 1 October 20X1, the company renewed its rental agreement paying $1,800 cash for 6 months' rent in advance. 6. Accrued but unrecorded salaries at 31 December amount to $1,900. 7. On 1 June 20X1, the company borrowed money from the bank by signing a $9,000, 8%, 12-month note payable. The entire note, plus 12 months' accrued interest, is due on 31 May 20X2. 8. The company estimates that income taxes expense for the entire year is $7,500. Required: Prepare the necessary adjusting entries (no explanations are needed) and the adjusted trial balance as at 31 December 20X1. Semester 1 2021/22 Page 2 Debit $ Credit $ 1 2 3 4 5 6 7 8