Terrific Temps fills temporary employment positions for local businesses. Some businesses pay in advance for services; others are billed after services have been performed. Advance payments are credited to an account entitled Unearned Fees. Adjusting entries are performed on a monthly basis. Below is an unadjusted trial balance dated December 31 of the current year. (Bear in mind that adjusting entries have already been made for the first 11 months, but not for December.)

TERRIFIC TEMPS UNADJUSTED TRIAL BALANCE DECEMBER 31, CURRENT YEAR
Cash	$	27,020
Accounts receivable		59,200
Unexpired insurance		900
Prepaid rent		3,000
Office supplies		600
Equipment		60,000
Accumulated depreciation: equipment				$	29,500
Accounts payable					4,180
Notes payable					12,000
Interest payable					320
Unearned fees					6,000
Income taxes payable					4,000
Unearned revenue					20,000
Retained earnings					49,000
Capital stock					25,000
Dividends		3,000
Fees earned					75,000
Travel expense		5,000
Insurance expense		2,980
Rent expense		9,900
Office supplies expense		780
Utilities expense		4,800
Depreciation expense: equipment		5,500
Salaries expense		30,000
Interest expense		320
Income taxes expense		12,000
	$	225,000		$	225,000

Other Data

Accrued but unrecorded fees earned as of December 31 amount to $1,500.

Records show that $2,500 of cash receipts originally recorded as unearned fees had been earned as of December 31.

The company purchased a six-month insurance policy on September 1 of the current year for $1,800.

On December 1 of the current year the company paid its rent through February 28 of the upcoming year.

Office supplies on hand at December 31 amount to $400.

All equipment was purchased when the business first formed. The estimated life of the equipment at that time was 10 years (or 120 months).

On August 1 of the current year the company borrowed $12,000 by signing a 6-month, 8 percent note payable. The entire note, plus 6 months accrued interest, is due on February 1 of the upcoming year.

Accrued but unrecorded salaries at December 31 amount to $2,700.

Estimated income taxes expense for the entire year totals $15,000. Taxes are due in the first quarter of the upcoming year.

Required:

a. For each of the numbered paragraphs, prepare the necessary adjusting entry.

b. Determine the amount at which each of the following accounts will be reported in the companys current year income statement.

1. Fees Earned

2. Travel Expense

3. Insurance Expense

4. Rent Expense

5. Office Supplies Expense

6. Utilities Expense

7. Depreciation Expense: Equipment

8. Interest Expense

9. Salaries Expense

10. Income Taxes Expense

c. The unadjusted trial balance reports dividends of $3,000. Have these dividends been paid as of December 31?