Q$4.$

Terrific Temps fills temporary employment positions for local businesses. Some businesses pay in advance for services;

others are billed after services have been performed. Advance payments are credited to an account entitled Unearned Fees.

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.$)$

Other Data

Accrued but unrecorded fees earned as of December $31$ amount to $$1,500.$

Records show that $$2,500$ of cash receipts originally recorded as unearned fees had been earned as of December $31.$

The company purchased a six$-$month insurance policy on September $1$ of the current year for $$1,800.$

On December $1$ of the current year, the company paid its rent through February $28$ of the upcoming year.

Office supplies on hand at December $31$ amount to $$400$

All equipment was purchased when the business first formed. The estimated life of the equipment at that time was $10$

years $($or $120$ months$).$

On August $1$ of the current year, the company borrowed $$12,000$ by signing a $6-$month, $8$ percent note payable. The entire

note, plus $6$ months' accrued interest, is due on February $1$ of the upcoming year.

Accrued but unrecorded salaries at December $31$ amount to $$2,700.$

Estimated income taxes expense for the entire year totals $$15,000.$ Taxes are due in the first quarter of the upcoming year.

Required:

a$.$ For each of the numbered paragraphs, prepare the necessary adjusting entry.

b$.$ Determine the amount at which each of the following accounts will be reported in the company's current year income

statement:

Fees Earned

Travel Expense

Insurance Expense

Rent Expense

Office Supplies Expense

Utilities Expense

Depreciation Expense: Equipment

Interest Expense

Salaries Expense

Income Taxes Expense

PLEASE PREPARE TABLE