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Q 3 . Silver Lining, Inc., provides investment advisory services. The company adjusts its accounts monthly, but performs closing entries annually on December 3 1
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Silver Lining, Inc., provides investment advisory services. The company adjusts its accounts monthly, but performs closing entries annually on December The firm's unadjusted trial balance dated December current year, appears as follows.
tabletableSILVER LIUnadjustedDecember Debits,CreditsCash$Accounts receivable,,Office supplies,,Prepaid rent,,Unexpired insurance,,tableOffice equipmentAccumulated depreciation office equipment$tableAccumulated depreciation: office equipmentAccounts payabletabletableAccounts payableInterest payabletableInterest payableIncome taxes payabletableNotes payableUnearned consulting services revenuetableRetained earnings,,tableDividendsConsulting services revenuetableConsulting services revenueOffice supplies expensetableOffice supplies expenseDepreciation expense: office equipmenttableInsurance expenseSalaries expensetableSalaries expenseInterest expenseIncome taxes expense,,Totals$$
Other Data
Accrued but unrecorded and uncollected consulting services revenue totals $ at December current year.
The company determined that $ of previously unearned consulting services revenue had been earned at December current year.
Office supplies on hand at December total $
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 months
The company prepaid its sixmonth rent agreement on October current year.
The company prepaid its month insurance policy on March current year.
Accrued but unpaid salaries total $ at December current year.
On June current year, the company borrowed $ by signing a month, percent note payable. The entire amount, plus interest, is due on March next year.
The company's CPA estimates that income taxes expense for the entire year is $ The unpaid portion of this amount is due early in the next year.
Required:
a Prepare the necessary adjusting journal entries on December current year.
a Prepare an adjusted trial balance dated December current year.
b From the adjusted trial balance prepared in part a prepare an income statement for the year ended December current year.
b From the adjusted trial balance prepared in part a prepare the statement of retained earnings for the year ended December current year. b From the adjusted trial balance prepared in part a prepare the company's balance sheet dated December current year.
c Prepare the necessary yearend closing entries.
d Prepare an afterclosing trial balance.
e Compute the company's average monthly insurance expense for January and February of current year.
f Compute the company's average monthly rent expense for January through September of current year.
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 current year?
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