Question

Terrific Temps fills temporary employment positions for localbusinesses. Some businesses pay in advance for services; others arebilled after services have been performed. Advanced payments arecredited to an account entitled Unearned Fees. Adjusting entriesare performed on a monthly basis. An unadjusted trial balance datedDecember 31, 2015, follows. (Bear in mind that adjusting entrieshave already been made for the first 11 months of 2015, but not forDecember.) TERRIFIC TEMPS UNADJUSTED TRIAL BALANCE DECEMBER 31,2015 Cash $ 27,020 Accounts receivable 59,200 Unexpired insurance900 Prepaid rent 3,000 Office supplies 600 Equipment 60,000Accumulated depreciation: equipment $ 29,500 Accounts payable 4,180Notes payable 12,000 Interest payable 320 Unearned fees 6,000Income taxes payable 4,000 Unearned revenue 20,000 Retainedearnings 49,000 Capital stock 25,000 Dividends 3,000 Fees earned75,000 Travel expense 5,000 Insurance expense 2,980 Rent expense9,900 Office supplies expense 780 Utilities expense 4,800Depreciation expense: equipment 5,500 Salaries expense 30,000Interest expense 320 Income taxes expense 12,000 $ 225,000 $225,000 Other Data 1. Accrued but unrecorded fees earned as ofDecember 31, 2015, amount to $1,500. 2. Records show that $2,500 ofcash receipts originally recorded as unearned fees had been earnedas of December 31. 3. The company purchased a six-month insurancepolicy on September 1, 2015, for $1,800. 4. On December 1, 2015,the company paid its rent through February 28, 2016. 5. Officesupplies on hand at December 31 amount to $400. 6. All equipmentwas purchased when the business first formed. The estimated life ofthe equipment at that time was 10 years (or 120 months). 7. OnAugust 1, 2015, the company borrowed $12,000 by signing asix-month, 8 percent note payable. The entire note, plus sixmonths' accrued interest, is due on February 1, 2016. 8. Accruedbut unrecorded salaries at December 31 amount to $2,700. 9.Estimated income taxes expense for the entire year totals $15,000.Taxes are due in the first quarter of 2016. Instructions a. Foreach of the numbered paragraphs, prepare the necessary adjustingentry. (If no entry is required for a transaction/event, select "Nojournal entry required" in the first account field.

part 2.b. Determine that amount at which eachof the following accounts will be reported in the company’s 2015income statement

1.fees earned

2.travel expense

3.insurance expense

4.rent expense

5.office supplies expense

6.utilities expense

7.depreciation expense:equipment

8.interest expense

9.income taxes expense