The trial balance and the other information for consulting engineers Mustang Rovers Consulting Limited follow:

Additional information:
1. Fees received in advance from clients were $6,900.
2. Services performed for clients that were not recorded by December 31 were $7,300.
3. Bad debt expense for the year was $6,300.
4. Insurance expense included a premium paid on December 31 in the amount of $6,000 for the period starting on
January 1, 2015.
5. Equipment, net of accumulated depreciation, is being depreciated at 9% per year.
6. Mustang gave the bank a 90-day, 12% note for $7,200 on December I, 2014.
7. Rent is S750 per month. The rent for 2014 and for January 2015 has been paid.
8. Salaries and wages earned but unpaid at December 31, 2014, were $2,5!0.
9. Dividends of $80,000 were declared for payment on February 1, 20! 5.
Instructions
(a) From the trial balance and other information given, prepare annual adjusting entries as at December 31, 2014.
(b) Prepare an income statement for 2014, a balance sheet as at December 31, 2014, and a statement of retained earnings for 2014.

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MUSTANG ROVERS CONSULTING LIMITED Trial Balance December 31, 2014 Debit Credit Cash Accounts receivable Allowance for doubtful accounts Supplies Prepaid nsurance Equipment Accumulated depreciation-equipment Notes payable Common shares Retained earnings Service revenue Rent expense Salaries and wages expense Insurance expense Utilities expense Miscellaneous expense $83,7C0 81,1C0 1,960 85,000 $ 750 0 6,250 7,200 35,010 161,100 100,000 9,750 28,500 18,500 1,080 720 $310,310 $310,310