Susan Donaldson, CPA, had the following transactions (among others) during 20X0: a. For accurate measurement of performance and position, Donaldson uses the accrual basis of accounting. On August she acquired office supplies for $1,800. Office Supplies Inventory was increased, and Cash was decreased by $1,800 on Donaldson's books. On December 31, her inventory of office supplies was $1,000. b. On August 1, a client gave Donaldson a retainer fee of $30,000 cash for monthly services to be rendered over the following 12 months. Donaldson increased Cash and Unearned Fee Revenue. c. Donaldson accepted an $11,000 note receivable from a client on October 1 for tax services. The note plus interest of 8% per year was due in 6 months. Donaldson increased Note Receivable and Fee Revenue by $11,000 on October 1. d. As of December 31, Donaldson had not recorded $500 of unpaid wages earned by her secretary during late December. Susan Donaldson prepared the following balance sheet equation and journal entries for the four transactions: (Click the icon to view the balance sheet equation.) (Click the icon to view the journal entries.) Begin by preparing an analysis for the year ended December 31, 20X0, in balance sheet equation format, for each adjustment made by the client in transactions (b) and (c) and by the secretary in transaction (d). For our purposes, assume that the secretary keeps personal books on the accrual basis. (Use parentheses or a minus sign to show a decrease in the balance sheet equation component and leave any unused cells blank.) Assets = Liabilities + Stockholders' Equity Accrued Wages Prepaid Accounting Cash Receivable Expenses = Accrued Interest Payable Accounting Expense Interest Expense Wages Revenue b. = C. d. Now prepare the adjusting journal entry for each adjustment. (Record debits first, then credits. Explanations are not required.) b. On August 1, a client gave Donaldson a retainer fee of $30,000 cash for monthly services to be rendered over the following 12 months. Donaldson increased Cash and Unearned Fee Revenue. Prepare the adjusting journal entry made by the client. b. Accounts Debit Credit c. Donaldson accepted an $11,000 note receivable from a client on October 1 for tax services. The note plus interest of 8% per year was due in 6 months. Donaldson increased Note Receivable and Fee Revenue by $11,000 on October 1. Prepare the adjusting journal entry made by the client. C. Accounts Debit Credit d. As of December 31, Donaldson had not recorded $500 of unpaid wages earned by her secretary during late December. For our purposes, assume that the secretary keeps personal books on the accrual basis. Prepare the adjusting journal entry made by the secretary. d. Accounts Debit Credit Accounts Debit a. Office supplies expense 800 Credit Office supplies inventory 800 b. Unearned fee revenue 12,500 Fee revenue 12,500 C. Accrued interest receivable.. 220 Interest revenue 220 d. Wages expense.. 500 Accrued wages payable 500