The following is the unadjusted trial balance for Corliss Construction Company as of December 31. 2017, which initially records prepaid expenses and unearned revenues in balance sheet accounts. The company provides professional construction consulting services to its clients. Shown below are items a thought that require adjusting entries as of December 31, 2017. The unadjusted trial balance is also provided. Additional Information: a) An analysis of the company's insurance policies shows that $3.864 of coverage expired for the period ending December 31, 2017 b) An inventory count shows that office supplies costing $3,349 are available at year-end 2017 c) Annual depreciation on equipment is $15.458. d) On October 1, the company agrees to do a special 6 month project (starting immediately) for a client. The contract calls for a $2.500 monthly fee, and the client paid the first six months' fees in advance. When the cash was received (on Oct 1), the Unearned Revenue account was credited at that time. The cash for the project will be collected in 2018. e) The company's only employee is paid weekly. As of the end of the year, two days' salaries have accrued (and not yet been paid) at the rate of $150 per day. f) The company provided consulting services for the month of December and billed the client $5,500. Corliss Construction Company Unadjusted Trial Balance December 31, 2017 DEBIT CREDIT Cash $28.791 Accounts receivable 0 Office supplies 10.187 Prepaid insurance 15.284 72.505 16.500 Equipment Accumulated depreciation - equipment Accounts payable Salaries payable Unearned training revenue 21.931 0 15.000 Common stock 13.000 Retained earnings 51.800 Dividends 40.775 103.924 Consulting revenue Depreciation expense - equipment Salaries expense 48.907 Insurance expense 0 Office supplies expense 0 Utilities expense 5.706 Totals $222.155 $222 155 Initials: Part 1: Prepare the necessary adjusting entries for items a throught and post them to the accounts (use the T-accounts on the following pages). Assume adjusting entries are made only at year-end, Make sure you start with the unadjusted balance as the beginning balance as listed in the trial balance, label your adjusting entry with the corresponding letter above (in parenthesis), and calculate your adjusted ending balance. For example it should look like this, where XXX represents the amount of the entry: Unadj./Beg Bal (k) Adj./End Bal Cash XXXX XXX (m) XXXXX XXXX psting to Initial Accounts Recevable Prepaid Insurance Office Supplies Salaries Payable Accumulated Depreciation- Equipment Unearned Revenue 5 Consulting Revenue Salaries Expense Office Supplies Expense- Insurance Expense Depreciation Expense. Equipment Initials Part 2: Update the ending balonces in the accounts when impacted for the adjusting entries and propore on aduated trial balance below! Corliss Construction Company Adjusted Trial Balance December 31, 2017 DEBIT CREDIT Cash Accounts receivable Office supplies Prepaid insurance Equipment Accumulated depreciation equipment Accounts payable Salaries payable Uneamed revenue Common stock Retained earnings Dividends Consulting revenue Depreciation expense - equipment Salaries expense Insurance expense Office supplies expense Utilities expense Totals 7 Part 3: Using the adjusted trial balance, prepare the institute's Income statement and statement of retained earnings for the year ended 2017, and prepare its balance sheet as of December 31. 2017. Templates have been provided, however you might not need all the rows and columns. Corliss Construction Company Income Statement For the year ended December 31, 2017 Revenues Consulting revenue Total revenues Expenses Depreciation expense - equipment Salaries expense Insurance expense Office supplies expense Utilities expense otal expenses Net income Initials: Corliss Construction Company Statement of Retained Earnings For the year ended December 31, 2017 Beginning Retained Earnings Ending Retained Earnings Corliss Construction Company Balance Sheet As of December 31, 2017 Assets Cash Accounts receivable Office supplies Prepaid insurance Equipment Accumulated depreciation - equipment Total assets Liabilities Accounts payable Salaries payable Unearned revenue Total liabilities Equity Common stock Retained earnings Total equity Total liabilities and equity