Powerjob Inc. provides employment consulting services. The company adjusts its accounts monthly but performs closing entries annually on December 31. The firmss unadjusted trial balance dated December 31, 2019 is shown below.

Other data:

1. Accrued but unrecorded and uncollected consulting fees earned at December 31 total : $25000.

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 $300

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, 2019.

6. The company prepaid its six-month insurance policy on December 1, 2019

7. Accrued but unpaid salaries total $12000 at December 31,2019.

8. On September 1, 2019, the company borrowed $60000 by signing an eight-month, 4 percent note payable. The entire amount, plus interest, is due March 31, 2020.

PowerJob Inc.
UNADJUSTED TRIAL BALANCE
DECEMBER 31, 2019
Account								Debit	Credit
Cash								$276.500
Accounts receivable								$90.000
Office supplies								$800
Prepaid rent								$3.600
Unexpired insurance								$1.500
Office equipment								$72.000
Accumulated depreciation : office equipment									$24.000
Accounts payable									$4.000
Notes payable (due 3/1/12)									$60.000
Interest payable									$600
Income taxes payable									$9.000
Dividends payable									$3.000
Unearned consulting fees									$22.000
Capital stock									$200.000
Retained earnings									$40.000
Dividends								$3.000
Consulting fees earned									$500.000
Rent expense								$14.700
Insurance expense								$2.200
Office supplies expense								$4.500
Depreciation expense : office equipment								$11.000
Salaries expense								$330.000
Utilities expense								$4.800
Interest expense								$3.000
Income taxes expense								$45.000
Totals								$862.600	$862.600

Instructions:

a. Prepare the necessary adjusting journal entries on December 31, 2019. Also prepare an adjusted trial balance dated December 31, 2019 (20 points).

b. From the adjusted trial balance prepared in part a, prepare an income statement and statement of retained earnings for the year ended December 31, 2019. Also prepare the companys balance sheet dated December 31, 2019 (20 points).

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

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

e. Compute the companys average monthly insurance expense for January through November 2019 (10 points).

f. Compute the companys average monthly rent expense for January through May 2019 (10 points).

g. 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, 2019? (10 points).