The People First Company began operations on December 1, 2017. The unadjusted trial balance of the People First Company as of December 31, 2017 is found on the trial balance tab. The following information is required to prepare the necessary adjusting entries for the People First Company found in chapter 3.

1) The balance in Prepaid insurance represents a 24-month policy that went into effect on December 1, 2017. Review the unadjusted balance in Prepaid insurance, and prepare the necessary adjusting entry, if any.

2) Based on a physical count, supplies on hand total $3,450. Review the unadjusted balance in Supplies, and prepare the necessary adjusting entry, if any.

3) The equipment is expected to have a 4-year useful life, and be worth about $10,000 at the end of four years. Review the unadjusted balance in Accumulated depreciation, and prepare the necessary adjusting entry, if any.

4) On December 26, the client paid a $11,400 60-day fee in advance, covering December 27 to February 24. Review the unadjusted balance in Unearned Consulting Revenue, and prepare the necessary adjusting entry, if any.

5) People First's sole employee earns $160 per day for a five-day workweek beginning on Monday and ending on Friday. The employee was last paid on Friday, December 26. Review the unadjusted balance in Salaries payable, and prepare the necessary adjusting entry, if any.

6) In the second week of December, People First agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $4,860. The terms of the initial agreement call for People First to provide services from December 12, 2017, through January 10, 2018, or 30 days of service. The club agrees to pay People First $4,860 on January 10, 2018, when the service period is complete. Review the unadjusted balance in Consulting revenue, and prepare the necessary adjusting entry, if any.

Prepare the required adjusting and closing entries for the People First Company.

eople First Comp Work Sheer For the Year Ended December 31, 2017 Adjusted Adjustments Balance Income Statement 14.335 14 335 St. of Owner's Equity & Balance Sheet Cr. 14,335 3,240 3,450 4,025 31,600 4.600 4.200 31,600 4 600 4 200 31 600 Account Cash Accounts receivable Supplies Prepaid insurance Equipment Accumulated depreciation Accounts payable Salaries payable Unearned consulting revenue P Clark, Capital P Clark, Withdrawals Consulting revenue 12.200 12,200 12,200 480 11.400 30.000 11.400 30.000 30,000 800 6.100 6.100 500 2 720 Rental revenue Depreciation expense Salaries expense Insurance expense Rent expense Supplies expense Utilities expense Totals Net inco 1,700 1.700 345 60,300 345 60 300 60.300 60300 O 57,450 3,870 3.870 42,680 3,870 46,550 Totals 57,450