Start from the trial balance and the posted T ACCOUNTS that Haupt consulting prepared at December 18, as follows

Haupt consulting

Trial Balance

December 18, 2010

Account title	Debit	Credit
Cashe	8100
Accounts receivable	1700
Supplies	300
Equipment	2000
Accumulated depreciation equipment
Furniture	3600
Accumulated depreciation furniture
Accounts payable		3900
Salary payable
Unearned service revenue
Carl haupt capital		10000
Carl haupt withdrawals
Service revenue		2500
Rent expense	500
Utilities	200
Salary expense
Depreciation expense- equipment
Depreciation expense- furniture
Supplies expense
Total	16,400	16,400

Later in December the business completed these transactions as follows;

Dec 21	Received $900 in advance for client service to be performed evenly over the next 30 days
Dec 21	Hired a secretary to be paid $1500 on the 20th day of each month. The secretary begins work immediately
Dec 26	Paid $3000 on account
Dec 28	Collected $600
Dec 30	Owner withdrew $1,600

REQUIREMENTS

1. Open these additional T-accounts: accumulated depreciation-equipment;accumulated depreciation furniture; salary payable; unearned service revenue; depreciation expense- equipment; depreciation expense-furniture; supplies expense

2. Journalize the transactions of December 21 -30

3. Post to the T accounts, keying all items by date

4. Prepare a trial balance at December 31. Also set up columns for the adjustments and for the adjusted trial balance as illustrated in exhibit 3-9

5. At December 31, the business gathers the following information for the adjusting entries

a. Accrued service revenue $400

b. Earned $300 of the service revenue collected in advance on December 21

c. Supplies on hand $100

d. Depreciation expense equipment, $33; furniture, $60

e. Accrued $700 expense for secretarys salary

On your work sheet make these adjustments directly in the adjustments colums and complete the adjusted trial balance at December 31. Throughout the book, to avoid rounding errors, we base adjusting entries on 30 day months and 360 day years

6. Journalize and post the adjusting entries In the T accounts denote each adjusting amount as adj and an account balance as bal

7. Prepare the income statement and the statement of owners equity of haupt consulting for the month ended December 31, 2010 and prepare the balance sheet at the date