The following are the trial balance ind the other information related to Perez Consulting Engineers. Perez Consulting Engineers
Trial Balance December 31, 2020 Debit Credit Cash $29,500 Accounts Receivable 49,600 Allowance for Doubtful Accounts $750 Supplies 1,960 Prepaid Insurance 1,100 Equipment 25,000 Accumulated Depreciation-Equipment 6,250 Notes Payable 7,200 Common Stock 10,000 Retained Earnings 25,010 Service Revenue Rent Expense 9,750 Salaries and Wages Expense 30,500 Utilities Expenses 1,080 Office Expense 720 $149,210 $149.210 1. Fees received in advance from clients $6,000, which were recorded as revenue. 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. Perez gave the bank a 90-day, 10% note for $7,200 on December 1, 2020. 7. Rent of the building is $750 per month. The rent for 2020 has been paid, as has that for January 2021, and recorded as Rent Expense. 8. Office salaries and wages earned but unpaid December 31, 2020, $2,510.Instructions:A. From the trial balance and other information given, prepare annual adjusting entries as of December 31, 2020. (Omit explanations).B. Prepare an income statement for 2020, a retained earnings statement, and a classified balance sheet. Perez paid a $17,000 cash dividend during the year (recorded in Retained Earnings).
