Financial Accounting 17th edition chapter 5 5PSA step by step solution Next Job, Inc., provides employment consulting...

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Financial Accounting 17th edition chapter 5 5PSA step by stepsolution
Next Job, Inc., provides employment consulting services. Thecompany adjusts its accounts monthly but performs closing entriesannually on December 31. The firm’s unadjusted trial balance datedDecember 31, current year, is shown as follows.
Other Data
Accrued but unrecorded and uncollected consulting fees earnedtotal $25,000 at December 31, current year.
The company determined that $15,000 of previously unearnedconsulting services fees had been earned at December 31, currentyear.
Office supplies on hand at December 31 total $300.
The company purchased all of its equipment when it first beganbusiness. At that time, the estimated useful life of the equipmentwas six years (72 months).
The company prepaid its nine-month rent agreement on June 1,current year.
The company prepaid its six-month insurance policy on December1, current year.
Accrued but unpaid salaries total $12,000 at December 31,current year.
On September 1, current year, the company borrowed $60,000 bysigning an 8-month, 4 percent note payable. The entire amount, plusinterest, is due on March 1, next year.
The company’s accounting firm estimates that income taxesexpense for the entire year is $50,000. The unpaid portion of thisamount is due early in the next year.
page 243
NEXT JOB, INC.
UNADJUSTED TRIAL BALANCE
DECEMBER 31, CURRENT YEAR
Cash $276,500
Accounts receivable 90,000
Office supplies 800
Prepaid rent 3,600
Unexpired insurance 1,500
Office equipment 72,000
Accumulated depreciation: office equipment $?24,000
Accounts payable 4,000
Notes payable (due 3/1/16) 60,000
Interest payable 600
Income taxes payable 9,000
Dividends payable 3,000
Unearned consulting fees 22,000
Capital stock 200,000
Retained earnings 40,000
Dividends 3,000
Consulting fees earned 500,000
Rent expense 14,700
Insurance expense 2,200
Office supplies expense 4,500
Depreciation expense: office equipment 11,000
Salaries expense 330,000
Utilities expense 4,800
Interest expense 3,000
Income taxes expense 45,000 ???????
Totals $862,600 $862,600
Instructions
Prepare the necessary adjusting journal entries on December 31,current year. Also prepare an adjusted trial balance dated December31, current year.
From the adjusted trial balance prepared in part a, prepare anincome statement and statement of retained earnings for the yearended December 31, current year. Also prepare the company’s balancesheet dated December 31, current year.
Prepare the necessary year-end closing entries.
Prepare an after-closing trial balance.

Answer & Explanation Solved by verified expert

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1 NEXT JOB INC Adjusting Journal entries December31 Curent Year Date Account Title Debit Credit Dec31 Accounts Receivable 25000 Consulting Fee Earned 25000 Accrued and uncollected consulting fee Dec31 Unearhed Consulting Fee 15000 Consulting Fee Earned 15000 Unearned consulting fee earned in December Dec31 Office Supplies Expense 500 Office Supplies 500 Office supplies used in December Dec31 Depreciation Expense Office Equipment 1000 Accumulated Depreciation Office Equipment 1000 Depreciation expense for December Dec31 Rent Expense 1200 Prepaid Rent 1200 Rent expense for De Dec31 Insurance Expense 250 Unexpired Insurance 250 Insurance Expense for December Dec31 Salaries Expense 12000 Salaries Payable 12000 Accrued and unpaid salaries on December 31 Dec31 Interest Expense 200 Interest Payable 200 Interest on See Answer

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