Tammy Touchtone operates a talent agency called Touchtone Talent Agency. Some clients pay in advance for services; others are billed after services have been performed. Advance payments are credited to an account entitled Unearned Agency Fees. Adjusting entries are performed on a monthly basis. Closing entries are performed annually on December 31 . An unadjusted trial balance dated December 31, current year, follows. (Bear in mind that adjusting entries have already been made for the first 11 months of current year, but not for December.) Other Data 1. Office equipment is being depreciated over 60 months (five years). 2. At December 31 , current year, $2,500 of previously unearnod agency fees had been earned. 3. Acerued but unrecorded and unpaid salary expense totals $1,360 at December 31 , current yeat. 4. The agency pays rent quarterly (every three months). The most recent advance payment of $1,800 was made November 1, curreat year. The next payment of $1,800 will be made on February 1, next year. 5. Accrued but unrecorded and uncollected agency fees earned total $3,000 at December 31 . current yest. 6. Office supplies on hand at December 31 , current year, total $530. 7. On September 1, current year, the agency purchased a six-month insurance policy for $750. 8. On December 1, current year, the agency borrowed $6,000 by signing a 3-month, 9 percent note payable. The entire amount borrowed, plus interest, is due March 1, next year. 9. Accrued income taxes payable for the entire year ending December 31, current year, total $3,900. The full amount is due carly in the next year. Instructions a. Prepare the becessary adjusting journal entries on December 31, current year. Also prepare an adjusted trial balance dated December 31, current year. b. From the adjusted trial balance preparod in part a, prepare an ineome statement and statemens of retained camings for the year ended December 31, current year. Also 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