Parson Services Corporation Was Organized on January 1, Year 8

Essay

Parson Services Corporation was organized on January 1, Year 8.The unadjusted trial balance on December 31, Year 8 after recording transactions that occurred during Year 8 is as follows.
Parson Services Corporation
Unadjusted Trial Balance
December 31 , Year 8
$\begin{array}{ll}&\text { Debit }&\text { Credit }\\\text { Cash } & \$ 125,000 \\\text { Fees Receivable } & 112,000 \\\text { Notes Receivable } & 115,000 \\\text { Office Supplies Inventory } & 11,800 \\\text { Prepaid Insurance } & 12,200 \\\text { Furmiture and Equipment } & 155,000\\\text { Accumulated Depreciation } && 0 \\\text { Accounts Payable } && \$ 113,000 \\\text { Common Stock } && 365,000 \\\text { Fee Revenues } & &195,000\\\text { Rent Expense } & 19,500 \\\text { Office Salaries Expense } & \underline{122,500} \\& \underline{\$ 673,000}&\$673,000\end{array}$ Below is the income statement for Year 8 that was prepared after making appropriate adjusting entries for Year 8.
Required:
Give the adjusting entries that Parson Services Corporation must have made at the end of Year 8 for each of the seven income statement accounts.You may express the adjusting entries either in the form of journal entries or T accounts.