Q.1: Fred Schwartz Dance Studio, Inc. adjusts its accounts monthly.  This is the studio’s unadjusted trial balance dated December 31, 2002.

FRED SCHWARTZ DANCE STUDIO, INC.

 Trial Balance

December 31, 2002

                                                                                                                 Debits          Credits

            Cash....................................................................................... $ 10,800

            Client’s fees receivable..........................................................     58,000

            Supplies..................................................................................       7,000

            Prepaid studio rent.................................................................       5,000

            Studio equipment...................................................................     96,000

            Accumulated depreciation: studio equipment.......................                       $ 45,000

            Accounts payable...................................................................                            7,000

            Notes payable........................................................................                          25,000

            Interest payable......................................................................                               500

            Unearned client fees..............................................................                          10,000

            Income taxes payable.............................................................                            3,000

            Capital stock..........................................................................                          70,000

            Client fees earned..................................................................                          87,000

            Supply expense......................................................................       6,000

            Salary expense.......................................................................     19,000

            Interest expense ....................................................................          500

            Studio rent expense...............................................................     26,000

            Utilities expense.....................................................................       4,200

            Depreciation expense: studio equipment...............................       9,000

            Income taxes expense............................................................       6,000     ________

                                                                                                            $247,500      $247,500

Other data

Supplies on hand at December 31, 2002, total $2,500.

The studio pays rent quarterly (every 3 months).  The last payment was made November 1, 2002.  The next payment will be made early in February 2003.

Studio equipment is being depreciated over 96 months (8 years).

$250 Interest is yet to be paid.

At December 31, 2002, $4,000 of previously unearned client fees had been earned.

Accrued, but unrecorded and uncollected client fees earned total $700 at Dec 31

Accrued, but unrecorded and unpaid salary expense totals $900 at December 31.

Required: 1) Prepare a 10-column work sheet utilizing the trial balance and adjustments shown above.       .2) Also adjusting and closing entries