Essay
The following are selected unadjusted account balances as at December 31, 2014, the year end of Joseph's Law Firm: 
Additional information obtained from a review of the law firm's records:
1. Work done for clients in December that will be invoiced in January is $9,800.
2. Prepaid insurance includes $12,600 paid for a one-year policy that was effective December 1, 2014.
3. Salaries are paid monthly on the 15th of each month. The salaries earned by employees from December 16 to 31st total $5,000.
Instructions
a. Prepare the December 31, 2014 adjusting entries required for these items.
b. Prepare the reversing entries required for January 1, 2015.
Correct Answer:
Verified
Correct Answer:
Verified
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