Question 1 [30 points] Star Inc. is just finishing another year of operations. The company's unadjusted trial balance at August 31, 2014 is shown below. The following additional information is available at August 31 for the year just ended a. $900 of the advertising paid for in advance has been published by the newspaper b. The Equipment was purchased in a previous year and will be worthless after four years. c. $240 of interest has accrued on a note receivable and is unrecorded d. $1,400 of the consulting fees paid to Star Inc. in advance has been earned e. The yearly depreciation on the building is $600 f. Interest of $950 has accrued on a bank loan and is unrecorded. g. Property taxes of $5,800 have accrued but are unrecorded h. Accrued salaries of $10,000 were not recorded at year-end. Use this information to prepare adjusting entries at August 31, 2014, based on the above. Enter the adjustment letter as the description. The dates must be entered in the format dd/mmm (ie. 15/Jan). Page GJ8 General Journal Account/Explanation Date F Debit Credit - T + + T Star Inc Unadjusted Trial Balance August 31, 2014 Debit Credit Accounts Payable 700 Accumulated Depreciation, Building 11,000 Accumulated Depreciation Equipment 16,250 Advertising Expense 5,800 Building 30,700 Share Capital 143,000 Cash 130,550 Consulting Revenue Earned 5,600 Depreciation Expense, Building 0 Depreciation Expense, Equipment 0 Equipment 32,500 Interest Earned 9,900 Interest Expense 7,900 Interest Payable Interest Receivable 0 Notes Receivable 13,000 Prepaid Advertising 1,000 Property Taxes Expense 11,800 Property Taxes Payable 0 Retained Earnings 35,000 Salaries Expense 8,300 Salaries Payable Short-Term Notes Payable 13,000 Supplies 700 Unearned Consulting Revenue 7,800 Totals 242,250 242,250 + + + + + + 1 T