The accountant for Emily's Emporium prepared the following trial balance at January 31, 2010, after one month of operations:
Debit Credit
Cash £ 5,600
Debtor 4,400
Unexpired Insurance 2,000
Office Equipment 18,000
Unearned Consulting Fees £ 3,200
Capital 15,500
Drawings 3,200
Consulting Fees Earned 26,200
Salaries Expense 7,600
Utilities Expense 1,600
Rent Expense 2,000
Supplies Expense 500 ______
£44,900 £44,900
Additional information items:
a Consulting services rendered to a client in January, not yet billed or recorded, £2,300.
b Portion of insurance expiring in January, £200.
c Advertising expense for January of £2,400, which has not been billed.
D The office equipment has a life of 5 years.
Making adjusting entries AND prepare financial statements from the trial balance. Based on the background part, (a) Prepare adjusting entries for a through d. (It's acceptable to omit the explanation). (b) Prepare the balance sheet and trading, profit and loss account for Emily's Emporium based on the above data.