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Next Job, Inc., provides employment consulting services. The company adjusts its accounts monthly but performs closing entries annually on December 31. The firm’s unadjusted trial balance dated December 31, 2011, is shown on the following page. Other Data Accrued but unrecorded and uncollected consulting fees earned total 25,000 at December 31, 2011. The company determined that 15,000 of previously unearned consulting services fees had been earned at December 31, 2011. Office supplies on hand at December 31 total 300. The company purchased all of its equipment when it first began business. At that time, the estimated useful life of the equipment was six years (72 months). The company prepaid its nine-month rent agreement on June 1, 2011. The company prepaid its six-month insurance policy on December 1, 2011. Accrued but unpaid salaries total 12,000 at December 31, 2011. On September 1, 2011, the company borrowed 60,000 by signing an eight-month, 4 percent note payable. The entire amount, plus interest, is due on March 1, 2012. The company’s accounting firm estimates that income taxes expense for the entire year is 50,000. The unpaid portion of this amount is due early in 2012.                   NEXT JOB, INC   UNADJUSTED TRAIL BALANCE   31-Dec-11   Cash       276500   Account Receivable     90000   Office Supplies     800   Prepaid Rent     3600   Unexpired Insurance   1500   Office Equipment     72000   Accumulated Depreciation: Office Equipment   24000 Account Payable       4000 Notes Payable(Due 3/1/12)     60000 Interest Payable       600 Income Taxes Payable     9000 Dividends Payable       3000 Unearned Consulting fees     22000 Capital Stock       200000 Retained earnings       40000 Dividends       3000   Consulting Fee Earned     500000 Rent Expense     14700   Insurance Expense     2200   Office Supplies Expense   4500   Depreciation Expense: Office Equipment 11000   Salaries Expense     330000   Utilities Expense     4800   Interest Expense     3000   Income Taxes Expense   45000   Total       862600 862600     Instructions: Prepare the necessary adjusting journal entries on December 31, 2011. Also prepare an adjusted trial balance dated December 31, 2011

Next Job, Inc., provides employment consulting services. The company adjusts its accounts monthly but performs closing entries annually on December 31. The firm’s unadjusted trial balance dated December 31, 2011, is shown on the following page. Other Data Accrued but unrecorded and uncollected consulting fees earned total 25,000 at December 31, 2011. The company determined that 15,000 of previously unearned consulting services fees had been earned at December 31, 2011. Office supplies on hand at December 31 total 300. The company purchased all of its equipment when it first began business. At that time, the estimated useful life of the equipment was six years (72 months). The company prepaid its nine-month rent agreement on June 1, 2011. The company prepaid its six-month insurance policy on December 1, 2011. Accrued but unpaid salaries total 12,000 at December 31, 2011. On September 1, 2011, the company borrowed 60,000 by signing an eight-month, 4 percent note payable. The entire amount, plus interest, is due on March 1, 2012. The company’s accounting firm estimates that income taxes expense for the entire year is 50,000. The unpaid portion of this amount is due early in 2012.                   NEXT JOB, INC   UNADJUSTED TRAIL BALANCE   31-Dec-11   Cash       276500   Account Receivable     90000   Office Supplies     800   Prepaid Rent     3600   Unexpired Insurance   1500   Office Equipment     72000   Accumulated Depreciation: Office Equipment   24000 Account Payable       4000 Notes Payable(Due 3/1/12)     60000 Interest Payable       600 Income Taxes Payable     9000 Dividends Payable       3000 Unearned Consulting fees     22000 Capital Stock       200000 Retained earnings       40000 Dividends       3000   Consulting Fee Earned     500000 Rent Expense     14700   Insurance Expense     2200   Office Supplies Expense   4500   Depreciation Expense: Office Equipment 11000   Salaries Expense     330000   Utilities Expense     4800   Interest Expense     3000   Income Taxes Expense   45000   Total       862600 862600     Instructions: Prepare the necessary adjusting journal entries on December 31, 2011. Also prepare an adjusted trial balance dated December 31, 2011

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Next Job, Inc., provides employment consulting services. The company adjusts its accounts monthly but performs closing entries annually on December 31. The firm’s unadjusted trial balance dated December 31, 2011, is shown on the following page.

Other Data

  1. Accrued but unrecorded and uncollected consulting fees earned total 25,000 at December 31, 2011.
  2. The company determined that 15,000 of previously unearned consulting services fees had been earned at December 31, 2011.
  3. Office supplies on hand at December 31 total 300.
  4. The company purchased all of its equipment when it first began business. At that time, the estimated useful life of the equipment was six years (72 months).
  5. The company prepaid its nine-month rent agreement on June 1, 2011.
  6. The company prepaid its six-month insurance policy on December 1, 2011.
  7. Accrued but unpaid salaries total 12,000 at December 31, 2011.
  8. On September 1, 2011, the company borrowed 60,000 by signing an eight-month, 4 percent note payable. The entire amount, plus interest, is due on March 1, 2012.
  9. The company’s accounting firm estimates that income taxes expense for the entire year is 50,000. The unpaid portion of this amount is due early in 2012.

 

 

 

 

 

 

 

 

 

NEXT JOB, INC

  

UNADJUSTED TRAIL BALANCE

  

31-Dec-11

  

Cash

 

 

 

276500

 

Account Receivable

  

 

90000

 

Office Supplies

  

 

800

 

Prepaid Rent

  

 

3600

 

Unexpired Insurance

 

1500

 

Office Equipment

  

 

72000

 

Accumulated Depreciation: Office Equipment

 

24000

Account Payable

  

 

 

4000

Notes Payable(Due 3/1/12)

 

 

60000

Interest Payable

  

 

 

600

Income Taxes Payable

 

 

9000

Dividends Payable

  

 

 

3000

Unearned Consulting fees

 

 

22000

Capital Stock

  

 

 

200000

Retained earnings

  

 

 

40000

Dividends

    

 

3000

 

Consulting Fee Earned

 

 

500000

Rent Expense

  

 

14700

 

Insurance Expense

  

 

2200

 

Office Supplies Expense

 

4500

 

Depreciation Expense: Office Equipment

11000

 

Salaries Expense

  

 

330000

 

Utilities Expense

  

 

4800

 

Interest Expense

  

 

3000

 

Income Taxes Expense

 

45000

 

Total

 

 

 

862600

862600

 

 

Instructions:

Prepare the necessary adjusting journal entries on December 31, 2011. Also prepare an adjusted trial balance dated December 31, 2011.

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