The following are the trial balance and the other information related to Yorkis Perez, a consulting engineer.

1. Fees received in advance from clients $6,000.
2. Services performed for clients that were not recorded by December 31, $4,900.
3. Bad debt expense for the year is $1,430.
4. Insurance expired during the year $480.
5. Equipment is being depreciated at 10% per year.
6. Yorkis Perez gave the bank a 90-day, 10% note for $7,200 on December 1, 2014.
7. Rent of the building is $750 per month. The rent for 2014 has been paid, as has that for January 2015.
8. Office salaries and wages earned but unpaid December 31, 2014, $2,510.

Instructions
(a) From the trial balance and other information given, prepare annual adjusting entries as of December 31, 2014. (Omit explanations.)
(b) Prepare an income statement for 2014, a statement of owner€™s equity, and a classified balance sheet. Yorkis Perez withdrew $17,000 cash for personal use during theyear.

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YORKIS PEREZ, CONSULTING ENGINEER TRIAL BALANCE DECEMBER 31, 2014 Debit Credit $ 29,500 49,600 Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Prepaid Insurance Equipment Accumulated Depreciation-Equipment Notes Payable Owner's Capital Service Revenue Rent Expense Salaries and Wages Expense Utilities Expenses Office Expense $ 750 1,960 1,100 25,000 6,250 7,200 35,010 100,000 9,750 30.500 1,080 720 S149,210 $149,210