Q. No 2 (A) GIZ consulting is an online service firm which provide many different services to its clients. All members pay in advance and these are credited to unearned member dues. Adjusting entries are made after every quarter. An unadjusted trial balance dated Dec 31, 2009 is shown on next page. a. Records shows that $21000 of cash receipts originally recorded as unearned member dues had been earned as of Dec 31, 20009. b. The company purchased a six-month insurance policy on Oct 1, 2009 for $19200. c. On Nov 1, 2009 the company paid $21900 for ret through January 31, 2010. d. Office Supplies on hand at Dec 31, amount to $440. e. All computer equipment was purchased when the business first formed. The estimated life of the equipment at that time was three years. f. On March 1, 2009 the company borrowed $90000 by signing a 12 month, 10 percent note payable. The entire note, plus 12 months accrued interest is due on March 1, 2010. g. Accrued but unrecorded salaries at December 31, amount to $10500. h. Estimated income taxes expense for the entire year totals $16000. Taxes are due in the first quarter of 2010. Dr Cash Unexpired Insurance 169500 12800 Prepaid Rent 14600 Office Supplies Computer Equipment Accumulated dep Comp. Equipment Accounts Payable 2160 108000 54000 4300 Notes Payable 90000 Interest Payable 6750 Income Taxes Payable 7500 Unearned Member dues 36000 Capital Stock 40000 Retained Earnings 28000 Client Fee Earned 508450 Advertising Expense 17290 Insurance Expense 35200 Rent Expense 80300 Office Supplies Expense 18400 Internet Connection Expense 24000 Depreciation Expense: Comp. Equipment 33000 Salaries Expense 239000 Interest Expense 6750 Income tax Expense 14000 775000 775000 Instructions: Prepare the necessary adjusting entries for the above data and prepare adjusted trial balance. (12+8=20)