Recording Entries and Adjusting Entries (FSET) Rhoades Tax Services began business on December 1. Its December transactions are as follows: Dec. 01: Rhoades invested $50,000 in the business in exchange for common stock. Dec. 02: Paid $3,000 cash for December rent to Bomba Realty (short-term lease). Dec. 02: Purchased $2,700 of supplies to have on hand on account. Dec. 03: Purchased $23,750 of office equipment, paying $11,750 cash with the balance due in 30 days. Dec. 08: Paid $2,700 cash on account for supplies purchased December 2. Dec. 14: Purchased $2,250 cash for assistant's wages for 2 weeks' work. Dec. 20: Performed consulting services for $7,500 cash. Dec. 28: Paid $2,250 cash for assistant's wages for 2 weeks' work. Dec. 30: Billed clients $18,000 for December consulting services. Dec. 31: Paid $4,500 cash for dividends. Additional information: 1. Supplies available at December 31 are $1,775. 2. Accrued wages payable at December 31 are $675. 3. Depreciation for December is $300. 4. Rhoades has spent 45 hours on an involved tax fraud case in December. When completed in January, his work will be billed at $125 per hour. Fees receivable Total current assets Office equipment $23,750 Equipment, net Total assets $ RHOADES TAX SERVICE Balance Sheet December 31 0 Total current liabilities $50,000 $ 675 675 23750 Total equity $ 50000 $ 23750 Total liabilities and equity $ 50675 my Accounts payable Accumulated depreciation Cash Common stock Consulting services revenue Depreciation expense Fees receivable Office equipment Rent expense Retu RHOADES ment of St r the Mont ,750 $ 0 $ $ Retained earnings Supplies Supplies expense Unearned revenue Wages expense Wages payable To close expense accounts $ Debi