p3 6 adjusting entries and financial statements presented below are the trial balanc 264446

P3 6 (Adjusting Entries and Financial Statements)Presented below are the trial balance and the other information related to Yorkis Perez, a consulting engineer.YORKIS PEREZ, CONSULTING ENGINEER TRIAL BALANCE DECEMBER 31, 2012Debit Credit Cash $ 29,500 Accounts Receivable 49,600 Allowance for Doubtful Accounts $ 750 Inventory 1,960 Prepaid Insurance 1,100 Equipment 25,000 Accumulated Depreciation—Equipment 6,250 Notes Payable 7,200 Owner’s Capital 35,010 Service Revenue 100,000 Rent Expense 9,750 Salaries and Wages Expense 30,500 Utilities Expenses 1,080 Office Expense 720 $149,210 $149,210 5 5 6 Problems145 146 Chapter 3 The Accounting Information System

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.Equipment is being depreciated at 10% per year.

6.Yorkis Perez gave the bank a 90 day, 10% note for $7,200 on December 1, 2012.

7.Rent of the building is $750 per month. The rent for 2012 has been paid, as has that for January 2013.

8.Office salaries and wages earned but unpaid December 31, 2012, $2,510.

Instructions

(a)From the trial balance and other information given, prepare annual adjusting entries as of December 31, 2012. (Omit explanations.)

(b)Prepare an income statement for 2012, a statement of owner’s equity, and a classified balance sheet. Yorkis Perez withdrew $17,000 cash for personal use during the year.