The following are the trial balance and the other information related to Brian Consulting Engineer. BRIAN CONSULTING ENGINEER
TRIAL BALANCE
DECEMBER 31, 2020
Debit Credit
Cash $29,500
Accounts Receivable 56,200
Allowance for Doubtful Accounts $754
Supplies 2,370
Prepaid Insurance 1,710
Equipment 26,900
Accumulated Depreciation-Equipment 6,232
Notes Payable 7,200
Owner’s Capital 36,778
Service Revenue 117,230
Rent Expense (13 months of rent) 10,595
Salaries and Wages Expense 34,700
Utilities Expenses 1,720
Office Expense 620
Totals $168,255 $168,255
1. Fees received in advance from clients $5,980, which were recorded as revenue.2. Services performed for clients that were not recorded by December 31, $4,558.3. Bad debt expense for the year is $1,328.4. Insurance expired during the year $519.5. Equipment is being depreciated at 10% per year.6. Pearl Perez gave the bank a 90-day, 10% note for $7,200 on December 1, 2017.7. Rent of the building is $815 per month. The rent for 2017 has been paid, as has that for January 2018, and recorded as Rent Expense.8. Office salaries and wages earned but unpaid December 31, 2017, $2,616.Pearl Perez withdrew $16,090 cash for personal use during the year.
1. From the trial balance and other information given, prepare annual adjusting entries as of December 31, 2017.2. Prepare an income statement for 2017.
3. Prepare a classified balance sheet for 2017.
4. Prepare a statement of owner’s equity for 2017.

Brian Consulting Engineer

1. Adjusting Entries:

a. Debit Service Revenue $5,980

Credit Unearned Fees $5,980

To record unearned fees.

b. Debit Accounts Receivable $4,558

Credit Service Revenue $4,558

To record services performed for clients.

c. Debit Bad Debt Expense $1,328

Credit Allowance for Uncollectibles $1,328

To record bad debt expense for the year.

d. Debit Insurance Expense $519

Credit Prepaid Insurance $519

To record expired insurance expense.

e. Debit Depreciation Expense- Equipment $2,690

Credit Accumulated Depreciation- Equipment $2,690

To record depreciation expense for the year.

f. Debit Interest Expense $60

Credit Interest Payable $60

To record interest expense for a month.

g. Debit Prepaid Rent $815

Credit Rent Expense $815

To record prepaid rent for January 2018.

h. Debit Salaries & Wages Expense $2,616

Credit Salaries & Wages Payable $2,616

To record accrued salaries and wages.

i. Debit Drawings $16,090

Credit Cash $16,090

To record drawing for personal use.

2. Income Statement for the year ended December 31, 2017:

Service Revenue                               $115,808

Depreciation Expense-

 Equipment                      2,690

Rent Expense                   9,780

Bad Debt Expense           1,328

Salaries and

Wages Expense             37,316

Utilities Expense               1,720

Office Expense                  620

Interest Expense                 60

Insurance Expense            519

Suspense                        3,879     $57,912

Net Income                                   $57,896

3. Classified Balance Sheet as of the year ended December 31, 2017:

Assets

Current Assets:

Cash                                                   $13,410

Accounts Receivable        60,758

Allowance for

 Doubtful Accounts           2,082     58,676

Supplies                                               2,370

Prepaid Insurance                                 1,191

Prepaid Rent                                           815    $76,462

Long-term Assets:

Equipment                         26,900

Accumulated Depreciation 8,922                  $17,978

Total assets                                                    $94,440

Liabilities + Equity

Liabilities:

Notes Payable                                         7,200

Salaries & Wages Payable                      2,616

Interest Payable                                           60

Unearned Fees                                      5,980 $15,856

Owner’s Capital                     36,778

Drawings                               (16,090)

Net Income                            57,896               $78,584

Total Liabilities + Equity                                   $94,440

4. Statement of Owner's Equity as of the year ended December 31, 2017:

Owner’s Capital                   $36,778

Drawings                               (16,090)

Net Income                            57,896

Owner's Capital, ending      $78,584

Explanation:

a) Data and Calculations:

BRIAN CONSULTING ENGINEER

TRIAL BALANCE

DECEMBER 31, 2020

                                            Debit         Credit

Cash                                $29,500

Accounts Receivable        56,200

Allowance for Doubtful Accounts            $754

Supplies                               2,370

Prepaid Insurance                1,710

Equipment                       26,900

Accumulated Depreciation-Equipment 6,232

Notes Payable                                         7,200

Owner’s Capital                                    36,778

Service Revenue                                  117,230

Rent Expense

(13 months of rent)         10,595

Salaries and

Wages Expense            34,700

Utilities Expense               1,720

Office Expense                  620

Totals                        $

Adjusted Trial Balance

                                            Debit         Credit

Cash                                  $13,410

Accounts Receivable        60,758

Allowance for Doubtful Accounts        $2,082

Supplies                               2,370

Prepaid Insurance                 1,191

Prepaid Rent                           815

Equipment                       26,900

Accumulated Depreciation-Equipment 8,922

Notes Payable                                         7,200

Salaries & Wages Payable                      2,616

Interest Payable                                           60

Owner’s Capital                                    36,778

Drawings                          16,090

Service Revenue                                 115,808

Unearned Fees                                      5,980

Depreciation Expense-

 Equipment                      2,690

Rent Expense                   9,780

Bad Debt Expense           1,328

Salaries and

Wages Expense             37,316

Utilities Expense               1,720

Office Expense                  620

Interest Expense                 60

Insurance Expense            519

Suspense                        3,879

Totals                        $179,446        $179,446

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