Presented below are the trial balance and the other information related to Amy Boer,

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.