Problem $4\mathrm{.}6$A $($Static$)$ Preparing Adjusting Entries and Determining Account Balances $($LO$4-1,$ LO$4-2,$ LO$4-3,$ LO$4-4,$ LO$4-5,$ LO$4-6,$ LO$4-7,$ LO$4-9)$

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Alpine Expeditions operates a mountain climbing school in Colorado. Some clients pay in advance for services; others are billed after services have been performed. Advance payments are credited to an account entitled Unearned Client Revenue. Adjusting entries are performed on a monthly basis. Below is an unadjusted trial balance dated December $31$ of the current year. $($Bear in mind that adjusting entries have already been made for the first $11$ months, but not for December.$)$

ALPINE EXPEDITIONS

UNADJUSTED TRIAL BALANCE

DECEMBER $31,$ CURRENT YEAR

Cash $ $13,900$

Accounts receivable $78,000$

Prepaid insurance $18,000$

Prepaid advertising $2,200$

Climbing supplies $4,900$

Climbing equipment $57,600$

Accumulated depreciation: climbing equipment $ $38,400$

Accounts payable $1,250$

Notes payable $10,000$

Interest payable $150$

Income taxes payable $1,200$

Unearned client revenue $9,600$

Capital stock $17,000$

Retained earnings $62,400$

Client revenue earned $188,000$

Advertising expense $7,400$

Insurance expense $33,000$

Rent expense $16,500$

Climbing supplies expense $8,400$

Repairs expense $4,800$

Depreciation expense: climbing equipment $13,200$

Salaries expense $57,200$

Interest expense $150$

Income taxes expense $12,750$

$ $328,000$ $ $328,000$

Other Data

Accrued but unrecorded fees earned as of December $31$ amount to $$6,400.$

Records show that $$6,600$ of cash receipts originally recorded as unearned client revenue had been earned as of December $31.$

The company purchased a $12-$month insurance policy on June $1$ of the current year for $$36,000.$

On December $1$ of the current year, the company paid $$2,200$ for numerous advertisements in several climbing magazines. Half of these advertisements have appeared in print as of December $31.$

Climbing supplies on hand at December $31$ amount to $$2,000.$

All climbing equipment was purchased when the business first formed. The estimated life of the equipment at that time was four years $($or $48$ months$).$

On October $1$ of the current year, the company borrowed $$10,000$ by signing an $8-$month, $9$ percent note payable. The entire note, plus $8$ months$$ accrued interest, is due on June $1$ of the upcoming year.

Accrued but unrecorded salaries at December $31$ amount to $$3,100.$

Estimated income taxes expense for the entire year totals $$14,000.$ Taxes are due in the first quarter of the upcoming year.

Problem $4\mathrm{.}6$A $($Static$)$ Part b

Required:

b$.$ Determine the amount at which each of the following accounts will be reported in the company$$s balance sheet dated December $31.$