For The DR Consulting Company you are given the following Unadjusted Trial Balance at the end of December, the second month of business. You are also given the information for adjusting entries. Prepare the necessary adjusting entries at the end of the second month presuming no adjusting entries were done at the end of November. If additional information does not require an adjusting entry, input "No transaction needed" in the first line of the journal entry. Account Debit Credit Cash $ 29,655 Accounts receivable 2,800 Interest receivable 0 Supplies 19,670 Prepaid insurance 3,420 Notes receivable 12,000 Land 100,000 Buildings 216,000 Equipment 129,600 Accumulated Depreciation - Buildings $ 0 Accumulated Depreciation - Equipment 0 Account payable 7,200 Salaries payable 0 Interest payable 0 Income tax payable 1,500 Unearned revenue 3,325 Notes payable 177,000 Common stock 309,000 Retained earnings 0 Cash dividends 1,200 Service revenue 38,910 Rent revenue 400 Interest revenue 0 Depreciation expense 0 Salaries expense 17,610 Insurance expense 0 Rent expense 1,475 Supplies expense 0 Utilities expense 2,405 Interest expense 0 Income tax expense 1,500 Totals $ 537,335 $ 537,335 Additional information: 1. DR Consulting determined that the prepaid insurance was paid at the beginning of November and is for 24 months of insurance benefits that began at the beginning of November. 2. DR Consulting determined there are $3,820 of supplies remaining at the end of December. 3. The equipment has been owned by the company since November 1, and is depreciated using the straight-line method of depreciation over a 10-year period and is estimated to be worth $15,600 at the end of the ten years. 4. The building has been owned by the company since November 1, and is depreciated using the straight-line method of depreciation over a 50-year period and is estimated to be worth $0 at the end of the 50 years. 5. The company has agreed to provide consulting services for Timmy Carter for $13,000. Timmy will pay DR Consulting when the services are completed. As of December 31, the company has provided 50% of the services, but has not billed or recorded the services already provided. 6. The note receivable for $12,000 was obtained by providing services to a customer. The services were completed December 1. The customer agreed to pay the principal and interest of the 9% note in 2 months on February 1. 7. DR Consulting has agreed to complete consulting work for Lonny Kennedy starting in January. Lonny has agreed to pay DR Consulting $14,000 for the services that will be provided. 8. A client paid DR Consulting $3,325 for consulting services to be provided during the months of December-February. As of the end of December DR has provided 28% of those services. 9. The company has an employee they have agreed to pay $260/day. The employee worked 5 days at the end of December for which the employee has not been paid, and the salary has not been recorded. 10. The note payable for $177,000 with an 7% interest rate was obtained on November 1, to purchase the Land & Building. The company is required to make annual payments of $14,264 every October 31. The company has not done any accruals for this note.
For The DR Consulting Company you are given the following Unadjusted
| Account | Debit | Credit |
| Cash | $ 29,655 | |
| Accounts receivable | 2,800 | |
| Interest receivable | 0 | |
| Supplies | 19,670 | |
| Prepaid insurance | 3,420 | |
| Notes receivable |
12,000 |
|
| Land | 100,000 | |
| Buildings | 216,000 | |
| Equipment | 129,600 | |
| $ 0 | ||
| Accumulated Depreciation - Equipment | 0 | |
| Account payable | 7,200 | |
| Salaries payable | 0 | |
| Interest payable | 0 | |
| Income tax payable | 1,500 | |
| Unearned revenue | 3,325 | |
| Notes payable | 177,000 | |
| Common stock | 309,000 | |
| 0 | ||
| Cash dividends | 1,200 | |
| Service revenue | 38,910 | |
| Rent revenue | 400 | |
| Interest revenue | 0 | |
| Depreciation expense | 0 | |
| Salaries expense | 17,610 | |
| Insurance expense | 0 | |
| Rent expense | 1,475 | |
| Supplies expense | 0 | |
| Utilities expense | 2,405 | |
| Interest expense | 0 | |
| Income tax expense | 1,500 | |
| Totals | $ 537,335 | $ 537,335 |
Additional information:
1. DR Consulting determined that the prepaid insurance was paid at the beginning of November and is for 24 months of insurance benefits that began at the beginning of November.
2. DR Consulting determined there are $3,820 of supplies remaining at the end of December.
3. The equipment has been owned by the company since November 1, and is
4. The building has been owned by the company since November 1, and is depreciated using the straight-line method of depreciation over a 50-year period and is estimated to be worth $0 at the end of the 50 years.
5. The company has agreed to provide consulting services for Timmy Carter for $13,000. Timmy will pay DR Consulting when the services are completed. As of December 31, the company has provided 50% of the services, but has not billed or recorded the services already provided.
6. The note receivable for $12,000 was obtained by providing services to a customer. The services were completed December 1. The customer agreed to pay the principal and interest of the 9% note in 2 months on February 1.
7. DR Consulting has agreed to complete consulting work for Lonny Kennedy starting in January. Lonny has agreed to pay DR Consulting $14,000 for the services that will be provided.
8. A client paid DR Consulting $3,325 for consulting services to be provided during the months of December-February. As of the end of December DR has provided 28% of those services.
9. The company has an employee they have agreed to pay $260/day. The employee worked 5 days at the end of December for which the employee has not been paid, and the salary has not been recorded.
10. The note payable for $177,000 with an 7% interest rate was obtained on November 1, to purchase the Land & Building. The company is required to make annual payments of $14,264 every October 31. The company has not done any accruals for this note.
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