Please help with MONTH END ADJUSTING ENTRY Number 5. Please explain only adjusting entry no. 5. "earned 3000 from the advance that was received" Cash will be debited with $3000 What will be Credited and WHY? Consider the following transactions for the first month of operations of a small law firm called Elephant Law Sept 1 Law invested $5,000 and a two office desks with a market value of $3,000 into the firm. The desks have a 10-year life. Sept 2 The law firm paid first and last month rent total of $3,000 of a 5-year lease. Sept 3 Paid $500 insurance for the period Sept 1-Aug 31 ( 1 year) Sept 4 Purchased office supplies on account, $30 Sept 5 Purchased on account, equipment costing $1500. Sept 7 Paid $3900 for a computer and printer Sept 9 Performed legal work on account in the amount of $4,700 Sept 10 Received $200 for legal work that was done Sept 9 Sept 15 Paid receptionist, $400 Sept 16 Received $15,000 for a legal retainer for a client, no work has been done yet Sept 17 Prepared a will and got paid $400 Sept 18 Received a utility bill for $175, with a due date Oct 10 Sept 20 Borrowed $36,000 from the bank, with an interest rate of 6% per year Sept 21 Received $500 on account for legal work provided Sept 9 Sept 25 Paid $750 on account for equipment purchased Sept 5 Sept 29 Paid $200 for advertising Sept 30 Landon withdrew cash of $1400 for a personal trip to Las Vegas

Adjusting Entries at month end

1. Supplies at the end of September were $100.00 2. Use straight-line depreciation method on the desks 3. The depreciation for the equipment and computer were $75 and $10 respectfully 4. One-month insurance was used up 5. Earned $3,000 from the advance that was received 6. Calculate interest expense on bank loan

Prepare the following: 1. Prepare the journal entries for the month of September 2. Post the entries into the general ledger 3. Prepare an unadjusted trial balance 4. Prepare the adjusting entries for the end of September 5. Prepare an adjusted trial balance 6. Prepare income statement, Statement of changes in Owners Equity and a classified balance sheet 7. Prepare closing entries