The unadjusted trial balance of the Stam Consulting 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 Stam Consulting 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 $3,900. Review the unadjusted balance in Supplies, and prepare the necessary adjusting entry, if any.

• 3) The equipment is expected to have an 5-year useful life, and be worth about $9,000 at the end of five 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 $13,200 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) Stam Consulting's employee earns $110 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, Stam Consulting agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $5,580. The terms of the initial agreement call for Stam Consulting to provide services from December 12, 2017, through January 10, 2018, or 30 days of service. The club agrees to pay Stam Consulting $5,580 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.

General Journal tab - For transactions 1-6, review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred.

General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted or adjusted balances.

Trial Balance tab - You may view either the unadjusted or adjusted balances by choosing from the dropdown box below. Your choice will determine the reported values on the financial statement tabs.

Income Statement, Statement of Retained earnings, Balance Sheet tabs - The financial statements will display the unadjusted or adjusted balances, based on your selection.

Impact on Income tab - For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the dropdown.)

TRIAL BALANCE

Stam Consulting
Trial Balance
December 31, 2016
Account Title	Debit	Credit
Cash	10,855
Supplies	5,200
Prepaid insurance	6,000
Equipment	37,800
Accounts payable		8,200
Unearned consulting revenue		13,200
Common stock		36,000
Dividends	1,200
Consulting revenue		7,000
Rental revenue		750
Salaries expense	1,870
Rent expense	1,850
Utilities expense	375
Total	65,150	65,150