Terrific Temps fills temporary employment positions for local businesses. Some businesses pay in advance for services; others are billed afterservices have been performed. Advance payments are credited to an account entitled Unearned Fees. Adjusting entries are performed on amonthly basis. Below is an unadjusted trial balance dated December 31 of the current year. (Bear in mind that adjusting entries have alreadybeen made for the first 11 months, but not for December.)CashAccounts receivableUnexpired insurancePrepaid rentOffice suppliesEquipmentAccumulated depreciation: equipmentAccounts payableNotes payableInterest payableUnearned feesIncome taxes payableUnearned revenueRetained earningsCapital stockDividendsFees earnedTravel expenseInsurance expenseTERRIFIC TEMPSUNADJUSTED TRIAL BALANCEDECEMBER 31, CURRENT YEARSRent expenseOffice supplies expenseUtilities expenseDepreciation expense: equipmentSalaries expenseInterest expenseIncome taxes expense27,02059,2009003,00060060,0002. Travel Expense3. Insurance Expense3,0005,0002,9809,9007804,8005,500$4. Rent Expense5. Office Supplies Expense6. Utilities Expense7. Depreciation Expense: Equipment8. Interest Expense9. Salaries Expense29,5004,18012,0003206,0004,00020,00049,00025,00075,000Other Data1. Accrued but unrecorded fees earned as of December 31 amount to $1,500.2. Records show that $2,500 of cash receipts originally recorded as uneamed fees had been earned as of December 31.3. The company purchased a six-month insurance policy on September 1 of the current year for $1,800.4. On December 1 of the current year the company paid its rent through February 28 of the upcoming year.5. Office supplies on hand at December 31 amount to $400.6. All equipment was purchased when the business first formed. The estimated life of the equipment at that time was 10 years (or 120months).30,00032012,000S 225,000 $ 225,0007. On August 1 of the current year the company borrowed $12,000 by signing a 6-month, 8 percent note payable. The entire note, plus 6months' accrued interest, is due on February 1 of the upcoming year.8. Accrued but 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 the upcoming year.Required:a. For each of the numbered paragraphs, prepare the necessary adjusting entry.b. Determine the amount at which each of the following accounts will be reported in the company's current year income statement.1. Fees Earned10. Income Taxes Expensec. The unadjusted trial balance reports dividends of $3,000. Have these dividends been paid as of December 31?

Journal Entries show in a prescribed manner the accounts that are affected by a transaction on both…

Terrific Temps fills temporary employment positions for local businesses. Some businesses pay in advance for services; others are billed after services have been performed. Advance payments are credited to an account entitled Uneamed Fees. Adjusting entries are performed on a monthly basis. Below is an unadjusted trial balance dated December 31 of the current year. (Bear in mind that adjusting entries have already been made for the first 11 months, but not for December.) Cash Accounts receivable Unexpired insurance Prepaid rent Office supplies Equipment Accumulated depreciation equipment Accounts payable Notes payable Interest payable Unearned fees Income taxes payable Unearned revenue Retained earnings Capital stock Dividends TERRIFIC TEMPS UNADJUSTED TRIAL BALANCE DECEMBER 31, CURRENT YEAR $ Fees earned Travel expense Insurance expense Rent expense Office supplies expense Utilities expense Depreciation expense: equipment Salaries expense Interest expense Income taxes expense 27,020 59,200 900 3,000 600 60,000 3,000 5,000 2,980 9,900 780 2. Travel Expense 3. Insurance Expense 4. Rent Expense 5. Office Supplies Expense 6. Utilities Expense 7. Depreciation Expense: Equipment 8. Interest Expense 9. Salaries Expense 4,800 5,500 30,000 320 12,000 225,000 $ 29,500 4,180 12,000 320 6,000 4,000 20,000 49,000 25,000 75,000 225,000 Other Data 1. Accrued but unrecorded fees earned as of December 31 amount to $1,500. 2. Records show that $2,500 of cash receipts originally recorded as uneared fees had been earned as of December 31. 3. The company purchased a six-month insurance policy on September 1 of the current year for $1,800. 4. On December 1 of the current year the company paid its rent through February 28 of the upcoming year. 5. Office supplies on hand at December 31 amount to $400. 6. All equipment was purchased when the business first formed. The estimated life of the equipment at that time was 10 years (or 120 months). 7. On August 1 of the current year the company borrowed $12,000 by signing a 6-month, 8 percent note payable. The entire note, plus 6 months' accrued interest, is due on February 1 of the upcoming year. 8. Accrued but 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 the upcoming year. Required: a. For each of the numbered paragraphs, prepare the necessary adjusting entry. b. Determine the amount at which each of the following accounts will be reported in the company's current year income statement. 1. Fees Earned 10. Income Taxes Expense c. The unadjusted trial balance reports dividends of $3,000. Have these dividends been paid as of December 31?