debits	credits
cash	37,500
accounts receivable	12,410
prepaid insurance	2,400
supplies	7,113
equipment	35,000
accumulated depreciation		10,000
accounts payable		7,569
unearned revenue		8,500
loan payable		15,000
capital stock		24,000
retained earnings, jan 1.		15,457
revenues		43,995
salary expense	12,098
rent expense	13,000
office expense	2,500
dividends	2,500
	124,521	124,521

a)   Asher Corporation's equipment had an originallife of 140 months, and the straight-line depreciation method isused. As of January 1, the equipment was 40 months old. Theequipment will be worthless at the end of its useful life.

b)   As of the end of the month, Asher Corporation hasprovided services to customers for which the earnings process iscomplete. Formal billings are normally sent out on the first day ofeach month for the prior month's work. January's unbilled work is$25,000.

c)   Utilities used during January, for which bills willsoon be forthcoming from providers, are estimated at $1,500.

d)   A review of supplies on hand at the end of the monthrevealed items costing $3,500.

e)   The $2,400 balance in prepaid insurance was for a6-month policy running from January 1 to June 30.

f)   The unearned revenue was collected in December of20X7. Sixty percent of that amount was actually earned in Januarywith the remainder to be earned in February.

g)   The loan accrues interest at 1% per month. Nointerest was paid in January.