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            The prepaid insurance was for the period 2010 April 1, to 2011 March 31.
            Accrued commissions payable total USD 3,000 at December 31.
            a. Prepare a 12-column work sheet for the year ended 2010 December 31. You need not include account numbers

          or explanations of adjustments.
            b. Prepare the adjusting journal entries.
            c. Prepare the closing journal entries.
            Alternate problem D The following trial balance and additional data are for Best-Friend Pet Hospital, Inc.
                    BEST-FRIEND PET HOSPITAL, INC.
                         Trial Balance
                       2010 December 31                Debits  Credits
          Cash                                     $   16,490
          Accounts Receivable                          54,390
          Supplies on Hand                             900
          Prepaid Fire Insurance                       1,800
          Prepaid Rent                                 21,600
          Equipment                                    125,000
          Accumulated Depreciation —Equipment                 $ 25,000
          Accounts Payable                                    29,550
          Notes Payable                                       9,000
          Capital Stock                                       150,000
          Retained Earnings, 2010 January 1                   20,685
          Service Revenue                                     179,010
          Interest Expense                             225
          Salaries Expense                             142,200
          Advertising Expense                          29,250
          Supplies Expense                             2,135
          Miscellaneous Expense                        3,705
          Legal and Accounting Expense                 13,750
          Utilities Expense                            1,800
                                                   $   413,245  $ 413,245
            The company consistently followed the policy of initially debiting all prepaid items to asset accounts.
            Prepaid fire insurance is USD 600 as of the end of the year.
            Supplies on hand are USD 638 as of the end of the year.

            Prepaid rent is USD 2,625 as of the end of the year.
            The equipment is expected to last 10 years with no salvage value.
            Accrued salaries are USD 2,625.
            a. Prepare a 12-column work sheet for the year ended  2010  December  31. You need not include account
          numbers. Briefly explain the entries in the Adjustments columns at the bottom of the work sheet, as was done in
          Exhibit 20.
            b. Prepare the 2010 December 31, closing entries.
            Alternate problem E The following trial balance and additional data are for Roswell Interior Decorators, Inc.:
                     ROSWELL INTERIOR DECORATORS, INC
                         Trial Balance
                       2010 December 31



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