The following information was available for Brilliant Consulting Company at its year end, December 31, 2011:
1. During the year, the company agreed to provide certain consulting services to a client for a fee of $ 10,000, which was received in advance. At the end of the year, it was estimated that 85% of the services had been provided.
2. The Office Supplies account had a balance of $350 at the beginning of the year and additional supplies costing $950 were purchased during the year. At the end of the year, a count of the office supplies indicated that supplies costing $250 remained on hand.
3. A new "business occupancy" tax was introduced by the municipal government in 2011, and the company was required to pay $1,800 to cover the period from April 1, 2011, to March 31, 2012.
4. The company rents some surplus space in its building to a tenant for $1,500 per quarter, payable in advance. The agreement began on September 1, 2011, and the tenant paid $1,500 on that date and an additional $1,500 on December 1.
5. Another tenant rents space in the company's building for $750 per month, due on the first day of each month. The agreement began several years ago and the tenant has paid the rent as scheduled every month, except for the most recent one. At year end, the rent for December 2011 was still outstanding.
6. During the year, the company engaged an advertising agency and paid $3,000 for its services. In addition to this, there were unpaid advertising bills at year end totalling $450; these are due in January 2012.
Required:
For each of the items above, indicate what should appear on the statement of earnings for the year ended December 31, 2011, and on the statement of financial position as of that date.