End-of-period adjustments - selected computations
Allied Architects adjusts its books each month and closes its books at the end of the year. The trial balance at January 31, 2010, before adjustments is as follows:

The following information relates to month-end adjustments:
(a) According to contracts, consulting fees received in advance that were earned in January total $13,500.
(b) On November 1, 2009, the company paid in advance for 5 months' advertising in professional journals.
(c) At January 31, supplies on hand amount to $2,250.
(d) The equipment has an original estimated useful life of 4 years.
(e) The corporation is subject to income taxes of 25% of taxable income. (Assume taxable income is the same as "income before taxes.")

Question

End-of-period adjustments - selected computations
Allied Architects adjusts its books each month and closes its books at the end of the year. The trial balance at January 31, 2010, before adjustments is as follows:
 
The following information relates to month-end adjustments:
(a) According to contracts, consulting fees received in advance that were earned in January total $13,500.
(b) On November 1, 2009, the company paid in advance for 5 months' advertising in professional journals.
(c) At January 31, supplies on hand amount to $2,250.
(d) The equipment has an original estimated useful life of 4 years.
(e) The corporation is subject to income taxes of 25% of taxable income. (Assume taxable income is the same as "income before taxes.")

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The Answer of End-of-period adjustments - selected computations
Allied Architects adjusts its books each month and closes its books at the end of the year. The trial balance at January 31, 2010, before adjustments is as follows:
 
The following information relates to month-end adjustments:
(a) According to contracts, consulting fees received in advance that were earned in January total $13,500.
(b) On November 1, 2009, the company paid in advance for 5 months' advertising in professional journals.
(c) At January 31, supplies on hand amount to $2,250.
(d) The equipment has an original estimated useful life of 4 years.
(e) The corporation is subject to income taxes of 25% of taxable income. (Assume taxable income is the same as "income before taxes.")

End-Of-Period Adjustments - Selected Computations