Star Immigration Consulting Company $("$the Company"$)$ provides immigration consulting services for people planning to emigrate. The Company organizes immigration seminars. Customers have to pay the Company in advance to attend the seminars and the Company credits its "Unearned consulting fees" account.

Adjusting entries are normally performed on a monthly basis. Closing entries are performed annually on $31$ December. Below is the Company's unadjusted trial balance as at $31$ December $2023.$

Star Immigration Consulting Company

Unadjusted Trial Balance

$31$ December $2023$

$\backslash$table$[[$Account Title,Debit $$,$Credit $$],[$Cash$,270,150,],[$Accounts receivable,$18,500,],[$Unexpired insurance,$20,000,],[$Prepaid rent,$165,000,],[$Office supplies,$24,500,],[$Office equipment,$420,000,],[$Accumulated depreciation: office equipment,,$56,000],[$Accounts payable,,$35,000],[6\%$ Notes payable,,$120,000],[$Interest payable,,$3,000],[$Salaries payable,,$30,000],[$Unearned consulting fees,,$100,000],[$Income taxes payable,,$35,000],[$Share capital $($$$1$ per share$),,220,000],[$Retained earnings,,$714,000],[$Consulting fees earned,,$],[$Salaries expense,$260,000,],[$Insurance expense,$58,000,],[$Rent expense,$185,000,],[$Office supplies expense,$5,420,],[$Electricity expense,$36,500,],[$Interest expense,$4,500,],[$Depreciation expense: office equipment,$56,000,],[$Marketing expense,$12,000,],[$Income taxes expense,$48,000,],[,,],[,,]]$

Information on adjusting entries:

$(1)$ Records show that $90\%$ of unearned consulting fees had been earned as of $31$ December $2023.$

$(2)$ Salaries earned by the Company's employees for December $2023$ that have not been paid nor recorded amount to $$25,000.$

$(3)$ Office supplies on hand at year end was $$17,500.$

$(4)$ On $1$ October $2023,$ the Company paid medical insurance premium for its employees six months in advance.

$(5)$ The Company borrowed $$120,000$ by signing a $5-$year notes payable with annual interest rate of $6\%$ on $1$ July $2023.$ Note interest is paid semi$-$annually at $31$ December and $30$ June. No entries were made for $($i$)$ the accrued interest for December $2023$ and $($ii$)$ the payment of the interest for $2023.$

$(6)$ The office equipment was bought on $1$ April $2023$ with useful life of $5$ years and no residual value. The Company adopts straight$-$line method for depreciation.

$(7)$ In December $2023,$ the Company organized a seminar to be held early next year. Admission fees received in advance totaled $$35,000$ in December. No entry was made.

$(8)$ On $31$ December $2023,$ the Company declared a dividend of $$0\mathrm{.}2$ per share to be payable early next year. No entry was made.

$(9)$ In December $2023,$ the Company successfully arranged for an U$.$K$.$ immigration visa for a customer, Mr$.$ Smith. The related fees of $$9,500$ has not been billed to Mr$.$ Smith and cash is not yet received.

$(10)$ Estimated income taxes expense for the entire year totals $$58,000.$ Taxes are due in the first quarter of the upcoming year.

Required:

$($a$)$ Prepare the necessary adjusting journal entries on $31$ December $2023$ to bring the financial records of Star Immigration Consulting Company up$-$to$-$date. Use the account titles given in the Trial Balance or create new accounts where appropriate. Show your workings. Explanations are NOT required.

$(21$ marks$)$

$($b$)$ Prepare the income statement for the year ended $31$ December $2023,$ showing breakdown of items under the captions of Revenues, Expenses, Profit before Taxes, Profit after Taxes.

$(13$ marks$)$