Romero started his own consulting firm, Romero Company, on July 1, 2018. The trial balance at July 31 is shown below.

ROMERO COMPANY
Trial Balance
July 31, 2018
		Debit		Credit
Cash		23,150
Accounts receivable		5,000
Supplies		4,000
Prepaid insurance		3,000
Equipment		13,000
Notes payable				15,000
Accounts payable				7,500
Unearned service revenue				4,000
Owners capital				18,750
Service revenue				12,900
Salaries and wages expense		7,000
Rent expense		3,000
		$ 58,150		$ 58,150

Other data:

1. Supplies on hand at July 31 are $750.

2. A utility bill for $350 has not been recorded and will not be paid until next month.

3. The insurance policy is for a year.

4. $1,200 of unearned service revenue remain unearned.

5. Romero company pays its employees total salaries of $7,250 every Monday for the preceding 5-day week (Monday through Friday). On Monday July 30, employees were paid for the week ending July 27. All employees worked the last 2 days of the month of July 2018.

6. The equipment is being depreciated over a 5-year life with no salvage value.

7. Invoices representing $3,200 of services performed during the month have not been recorded as of July 31.

8. Romero company borrowed $15,000 by signing a 7.3%, two-year note on July 11^th, 2018.

Instructions

a. Prepare the adjusting entries for the month of July.

b. Prepare the Classified Balance sheet at Dec. 31, 2018.