Hi, I am having a difficult time understanding this chapter. Could you shed some light for me? I have attached the practice quiz. Thank you so much.

Hi, I am having a difficult time understanding this chapter. Could you shed some light for me?

I have attached the practice quiz. Thank you so much.

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Problem 4.5A Preparing Adjusting Entries and Determining Account Balances L.O. 1-7, 9
Terrific Temps fills temporary employment positions for local businesses. Some businesses pay in advance for
services; others are billed after services have been performed. Advanced payments are credited to an account
entitled Unearned Fees. Adjusting entries are performed on a
monthly
basis. An unadjusted trial balance dated
December 31, 2011, follows. (Bear in mind that adjusting entries have already been made for the first 11 months of
2011, but
not
for December.)
TERRIFIC TEMPS
UNADJUSTED TRIAL BALANCE
DECEMBER 31, 2011
Cash
$
27,020
Accounts
receivable
59,200
Unexpired
insurance
900
Prepaid rent
3,000
Office
supplies
600

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Equipment
60,000
Accumulate
d
depreciation:
equipment
$
29,500
Accounts
payable
4,180
Notes
payable
12,000
Interest
payable
320
Unearned
fees
6,000
Income
taxes payable
4,000
Unearned
revenue
20,000

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