Presented below are the trial balance and the other information related to Amy Boer, a consulting engineer.
AMY BOER, CONSULTING ENGINEER
TRIAL BALANCE
DECEMBER 31, 2014
Debit Credit
Cash $ 29,500
Accounts Receivable 49,600
Allowance for Doubtful Accounts $ 750
Engineering Supplies Inventory 1,960
Prepaid Insurance 1,100
Furniture and Equipment 25,000
Accumulated Depreciation Furniture and Equipment 6,250
Notes Payable 7,200
Amy Boer, Capital 35,010
Service Revenue 100,000
Rent Expense 9,750
Office Salaries Expense 30,500
Heat, Light, and Water Expense 1,080
Miscellaneous Office Expense 720
$149,210 $149,210
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. Furniture and equipment is being depreciated at 10% per year.
6. Amy Boer 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 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 and a classified balance sheet.