Redmon gathers the following information for adjusting entries on December 31:

a) Accrued service revenue, $400.

b) Earned 1/3 of the service revenue collected in advance on December 22.

c) Supplies on hand, $100.

d) Both the computer and the furniture need to be depreciated for a full month.

e) Record the secretarys salary since being hired; she has now worked 1/3 of the month.

f) Record expiration of prepaid insurance.

Required

1) Prepare adjusting entries for the above transactions.

2) Post these entries to the ledger.

3) Prepare an adjusted trial balance, an income statement, a statement of owners equity, and a balance sheet as of / on December 31, 2017.

4) Prepare closing entries at December 31, 2017 and post to the ledger.

5) Prepare a post-closing trial balance on December 31, 2017.

6) Write a letter to the CEO explaining the current financial position of the company

This is our trial balance.

Carl Redmon Consulting Chart of Accounts Account Title Number 101 Cash Accounts Receivable Supplies Software Inventor Estimated Returns Inventor Prepaid Rent Prepaid Insurance Equipment Accumulated Depreciation Equipment Furniture Accumulated Depreciation Furniture Accounts Payable Salary Payable Unearned Service Revenue Refunds Payable Carl Redmon, Capital Carl Redmon, Withdrawals Service Revenue Sales Revenue Cost of Goods Sold Rent Expense Utilities Expense Salary Expense Depreciation Expense Equipment Depreciation Expense Furniture Supplies Expense Insurance Expense Income Summar 102 103 104 104.5 105 106 107 107.5 108 108.5 201 202 203 204 301 302 401 402 501 502 503 504 505 506 507 508 601