Question 1 (30 marks) Next Job, Inc., provides employment consulting services. The company adjusts its accounts monthly (i.e. adjustments already been made till November 30) but performs closing entries annually on December 31. The firm's unadjusted trial balance dated December 31, current year, is shown as follows. Next Job, Inc. Unadjusted Trial Balance December 31, Current Year Cash $276,500 Accounts receivable 90,000 Office supplies 800 Prepaid rent 3,600 Unexpired insurance 1,500 Office equipment 72,000 Accumulated depreciation office $ 24,000 equipment Accounts payable 4,000 Notes payable (due 3/1/16) 60,000 Interest payable 600 Income taxes payable 9,000 Dividends payable 3,000 Unearned consulting fees 22,000 Capital stock 200,000 Retained earnings 40,000 Dividends 3,000 Consulting service revenue 500,000 Rent expense 14,700 Insurance expense 2,200 Office supplies expense 4,500 Depreciation expense: office 11,000 equipment Salaries expense 330,000 Utilities expense 4,800 Interest expense 3,000 Income taxes expense 45,000 Totals $862.600 $862.600 Other Data 1. Accrued but unrecorded and uncollected consulting fees earned total $25,000 at December 31, current year. 2. The company determined that $15,000 of previously unearned consulting services fees had been earned at December 31, current year. 3. Office supplies on hand at December 31 total $300. 4. 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 (72 months). 5. The company prepaid its nine-month rent agreement on June 1, current year. 6. The company prepaid its six-month insurance policy on December 1, current year. 7. Accrued but unpaid salaries total $12,000 at December 31, current year, 8. On September 1, current year, the company borrowed $60,000 by signing an 8-month, 4 percent note payable. The entire amount, plus interest, is due on March 1, next year. 9. The company's accounting firm estimates that income taxes expense for the entire year is $50,000. The unpaid portion of this amount is due early in the next year. Required: a. Prepare the necessary adjusting journal entries on December 31, current year. (18 marks) b. Prepare the Balance Sheet as at December 31, current year. (12 marks)