Sterling Consulting became a public company on May 1, 2023. Below is its trial balance before adjustment on May 31. Additional information: 1. The two-year insurance policy was acquired 5/1/23. 2. A count of supplies shows $5,250 of unused supplies on May 31. 3. Annual depreciation is $18,000 on the building and $15,000 on office equipment. 4. The note is a 5%, 4-year note, with interest payable at the end of the year. (The note was signed on May 1, 2023.) 5. $2,500 of revenue that was unearned on May 1 has been earned by May 31. 6. Salaries of $4,500 earned in May remain unpaid at May 31.

a. Journalize the adjusting entries on May 31. b. Prepare a ledger using T-accounts. Enter the trial balance amounts and post the adjusting entries. c. Prepare an adjusted trial balance on May 31, 2023. d. Prepare (1) an income statement and (2) a retained earnings statement for the month of May and (3) a classified balance sheet at May 31. Be sure to include appropriate headings, subtotals, and totals. e. Assuming that Sterling closes the books monthly, prepare closing entries at May 31, 2023. (Add them to the General Journal.)

\begin{tabular}{lrr} \multicolumn{2}{c}{SterlingConsultingCompanyTrialBalanceMay31,2023} & \\ \hline & Dr. & \multicolumn{1}{c}{ Cr. } \\ \hline Cash & 12,500 & \\ Supplies & 13,000 & \\ Prepaid Insurance & 18,000 & \\ Land & 200,500 & \\ Buildings & 380,000 & \\ Office equipment & 84,000 & \\ Accounts payable & & 12,500 \\ Unearned revenue & & 6,500 \\ Note payable & & 240,000 \\ Common stock & & 400,000 \\ Service revenue & & 95,000 \\ Salaries and wages expense & 30,000 & \\ Utilities expense & 4,000 & \\ Advertising expense & 12,000 & \\ & 754,000 & 754,000 \end{tabular}