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Alpine Expeditions operates a mountain climbing school in Colorado. Some clients pay in advance for services; others are billed after services have been performed. Advance payments are credited to an account entitled Unearned Client Revenue. Adjusting entries are performed on a monthly basis. Below is an unadjusted trial balance dated December 31 of the current year. (Bear in mind that adjusting entries have already been made for the first 11 months, but not for December.)

ALPINE EXPEDITIONSUNADJUSTED TRIAL BALANCEDECEMBER 31, CURRENT YEARCash$ 13,900 Accounts receivable78,000 Prepaid insurance18,000 Prepaid advertising2,200 Climbing supplies4,900 Climbing equipment57,600 Accumulated depreciation: climbing equipment $ 38,400Accounts payable 1,250Notes payable 10,000Interest payable 150Income taxes payable 1,200Unearned client revenue 9,600Capital stock 17,000Retained earnings 62,400Client revenue earned 188,000Advertising expense7,400 Insurance expense33,000 Rent expense16,500 Climbing supplies expense8,400 Repairs expense4,800 Depreciation expense: climbing equipment13,200 Salaries expense57,200 Interest expense150 Income taxes expense12,750 $ 328,000$ 328,000

Other Data

Accrued but unrecorded fees earned as of December 31 amount to $6,400.

Records show that $6,600 of cash receipts originally recorded as unearned client revenue had been earned as of December 31.

The company purchased a 12-month insurance policy on June 1 of the current year for $36,000.

On December 1 of the current year, the company paid $2,200 for numerous advertisements in several climbing magazines. Half of these advertisements have appeared in print as of December 31.

Climbing supplies on hand at December 31 amount to $2,000.

All climbing equipment was purchased when the business first formed. The estimated life of the equipment at that time was four years (or 48 months).

On October 1 of the current year, the company borrowed $10,000 by signing an 8-month, 9 percent note payable. The entire note, plus 8 months accrued interest, is due on June 1 of the upcoming year.

Accrued but unrecorded salaries at December 31 amount to $3,100.

Estimated income taxes expense for the entire year totals $14,000. Taxes are due in the first quarter of the upcoming year.

Required:

a. For each of the numbered paragraphs, prepare the necessary adjusting entry.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

b. Determine the amount at which each of the following accounts will be reported in the companys balance sheet dated December 31.