TOUCHTONE TALENT AGENCY
Adjusted Trial Balance
December 31, 2015
Cash		$14,950
Fees receivable		38,300
Prepaid rent		600
Unexpired insurance policies		4,250
Office supplies		530
Office equipment( urchased 1/1/12)		15,000
Accumulated depreciation: office equipment			$12,000
Accounts payable			1,750
Notes payable (Due 3/1/16)			10,000
Income taxes payable			3,900
Unearned agency fees			5,500
Salaries payable			1,360
Interest payable			45
Common stock			20,000
Retained earnings			10,800
Dividends		800
Agency fees earned			52,000
Telephone expense		525
Office supply expense		1,500
Depreciation expense: office equip	ment	3,000
Rent expense		6,700
Insurance expense		1,300
Salaries expense		26,000
Income taxes expense		3,900
Totals		$117,355	S 117,355

Upon audit of the above 2015 trial balance, you discover the following issues:

The company forgot to include an accrual for an employee's salary at the end of 2015. The company will have to pay $2,200 to employees during the first week in January 2016 for work performed during the last week in December.

The controller mistakenly recorded the purchase of a $1,800 computer with a 3-year life (SL) as an expense in 2014. ( Assume the purchase is Beg. of 2014)

On March 1, 2014, the company borrowed $10,000 by signing a 4-year 6% note payable. The note is a balloon loan with all interest and principal due March 1, 2016. No interest was recorded for 2014 or 2015.

A five-year casualty insurance policy was purchased at the beginning of 2014 for $4,250. The full amount was debited to unexpired insurance at the time.

The income tax rate is 30%.

Using Excel record any appropriate journal entries and prepare a balance sheet, income statement and statement of retained earnings. (Hint: use the format in Appendix 3C.)