RTS began business on December 1, 2015. Its December transactions are: Dec. 1 Invested $40,000 in the business in exchange for common stock. 2 Paid $2,400 cash for December rent. 2 Purchased $2,160 of supplies on account. 3 Purchased $19,000 of office equipment; paying $4,700 cash with the balance due in 30 days. 14 Paid $3,600 cash for assistant's wages for two weeks' work. 20 Performed consulting services for $6,000 cash 30 Billed clients $14,400 for December consulting services 31 Paid $2,800 cash for dividends Required: a. Record these transactions in journal entry form and prepare the unadjusted trial balance. 12 marks b. Journalize the following adjusting entries at December 31: 1 23 4 Supplies available at December 31 are $1,440. Accrued wages payable at December 31 are $540 Depreciation for December is $240. 5 marks RTS has spent 30 hours on a tax fraud case during December. When completed in January, his work will be billed at $150 per hour. (Use Fees Receivable) Prepare the adjusted trial balance 8 marks The following accounts appeared in the December 31 trial balance: Equipment Acc. Depreciation-equipment Notes payable Sales revenue Advertising expense Salaries and wages expense Interest expense Debit $960,000 Credit $120,000 186,000 750,000 62,000 80,000 9,000 Consider the following transactions: a. The equipment has a useful life of 16 years and a salvage value of $40,000. ST-line depreciation applies. b. The note payable is a 90-day note given to the bank on October 20 and bearing interest at 10%. C. In December, 2,000 coupons were sold at $25 each; they can be used for admission any time after January 1. d. 2 Of the advertising expense balance, $1,100 is paid in advance. e. Salaries accrued but unpaid are $11,800. Required: Part a. (10 marks) Prepare the adjusting entries necessary on December 31. Part b. (10 marks) What amounts should be shown for each of the following on the income statement for the year? Interest expense Sales revenue Advertising expense Salaries and wages expense