The unadjusted trial balance of the Home Perfection 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 Home Perfection Company.

• 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 $4,500. 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 $9,000 at the end of four years. Review the unadjusted balance in Accumulated depreciation, and prepare the necessary adjusting entry to record the monthly depreciation, if any.

• 4) On December 26, the client paid a $8,400 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) Home Perfection's employee earns $150 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 expense, and prepare the necessary adjusting entry, if any.

• 6) In the second week of December, Home Perfection agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $3,660. The terms of the initial agreement call for Home Perfection to provide services from December 12, 2017, through January 10, 2018, or 30 days of service. The club agrees to pay Home Perfection $3,660 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.

Home Perfection
Trial Balance
December 31, 2017
Account Title	Debit	Credit
Cash	16,485
Supplies	4,500
Prepaid insurance	7,700
Equipment	30,600
Accumulated depreciation - Equipment		500
Accounts payable		6,200
Salaries payable		450
Unearned consulting revenue		7,700
C. Fields, Capital		44,000
C. Fields, Withdrawals	800
Consulting revenue		8,900
Rental revenue		400
Depreciation expense - Equipment	500
Salaries expense	3,000
Insurance expense	700
Rent expense	2,050
Supplies expense	1,500
Utilities expense	315
Total	68,150	68,150