Silver Lining, Inc., provides investment advisory services. The company adjusts its accounts monthly, but performs closing entries annually on December $31.$ The firm's unadjusted trial balance dated December $31,$ current year, appears as follows.

SILVER LINING, INC

Unadjusted Trial Balance December $31,$ Current Year

Debits

Credits

Cash

$51\mathrm{.}402$

Accounts receivable

$2\mathrm{.}400$

Office supplies

$246$

Prepaid rent

$1\mathrm{.}440$

Unexpired insurance

$324$

Office equipment

$64\mathrm{.}800$

Accumulated depreciation: office equipment:

$

$42,300$

Accounts payable

$1,680$

Interest payable

$432$

Income taxes payable

$2,100$

Notes payable

$10\mathrm{.}800$

Unearned consulting services revenue

$4,200$

Capital stock

$36,000$

Retained earnings

$9,600$

Dividends

$1,200$

Consulting services revenue

$72\mathrm{.}000$

Office supplies expense

$726$

Depreciation expense: office equipment

$9,900$

Rent expense

$4,230$

Insurance expense

$1,212$

Salaries expense

$32,520$

Interest expense

$432$

Income taxes expense

$8,280$

Totals

$179,112$

$179\mathrm{.}112$

Other Data

$1.$ Accrued but unrecorded and uncollected consulting services revenue totals $$1,800$ at December $31,$ current year.

$2.$ The company determined that $$3,000$ of previously unearned consulting services revenue had been earned at December $31,$ current year.

$3.$ Office supplies on hand at December $31$ total $$132.$

$4.$ The company purchased all of its equipment when it first began business. At that time, the estimated useful life of the equipment was six years $(72$ months$).$

$5.$ The company prepaid its six$-$month rent agreement on October $1,$ current year.

$6.$ The company prepaid its $12-$month insurance policy on March $1,$ current year.

$7.$ Accrued but unpaid salaries total $$2,280$ at December $31,$ current year.

$8.$ On June $1,$ current year, the company borrowed $$10,800$ by signing a $9-$month, $8$ percent note payable. The entire amount, plus interest, is due on March $1,$ next year.

$9.$ The company's CPA estimates that income taxes expen: for the entire year is $$9,000.$ The unpaid portion of this amount is due early in the next year.

Required:

a$-1.$ Prepare the necessary adjusting journal entries on December $31,$ current year. a$-2.$ Prepare an adjusted trial balance dated December $31,$ current year.

b$-1.$ From the adjusted trial balance prepared in part a$-2,$ prepare an income statement for the year ended December $31,$ current year. b$-2.$ From the adjusted trial balance prepared in part a$-2,$ prepare the statement of retained eamings for the year ended December $31,$ current year. b$-3.$ From the adjusted trial balance prepared in part a$-2,$ prepare the company's balance sheet dated December $31,$ current year.

c$.$ Prepare the necessary year$-$end closing entries.

d$.$ Prepare an after$-$closing trial balance.

e$.$ Compute the company's average monthly insurance expense for January and February of current year.

$1.$ Compute the company's average monthly rent expense for January through September of current year.

g$.$ If the company purchased all of Its office equipment when it first incorporated, for how long has it been in business as of December $31,$ current year?