1. Atty Timothy began business on January 1, 2018. The following data were available on December 31, 2018.

Timothy Law Office

Unadjusted Trial Balance
December 31, 2018

Account No. Account Title Debit Credit

101 Cash 191,100

102 Accounts Receivable 27,000
103 Notes Receivable 60,000
104 Office Supplies 39,000
201 Furniture & Fixtures 65,000
202 Legal Equipment 290,000
301 Accounts Payable 5,100
302 Unearned Legal Fees Revenue 17,000
401 Atty. Timothy, Capital 175,500
402 Atty. Timothy, Personal 6,500
501 Legal Fees Revenues 659,000
601 Rent Expense 93,800
603 Taxes and Licenses 15,000
603 Utilities Expense 69,200 _______
Total 856,600 856,600

a. The balance in the notes receivable is for a single 60,000 note from a customer dated December 16, 2018. The
note, due February 14, 2019, carries an interest rate of 14%.
b. A count of the office supplies showed 12,000 still on hand as at December 31.
c. Bad accounts should be written off amounting to 7,000 representing past due accounts of an insolvent client.
d. Atty. Timothy invested 35,000 of the furniture and fixtures when the clinic was opened on January 1. It Is
estimated to have a useful life of 5 years and a residual value of 5,000. The balance was acquired on October 31
and has an estimated useful life of 6 years, no scrap value.
e. The legal equipment was purchased on February 28 for 290,000. It has an estimated useful life of 5 years and a
residual value of 40,000.
f. The salary of the newly hired secretary, Ms. Piamonte, amounting to 9,000 for the month of December, has ben
paid but not yet recorded.
g. Only 7,000 of the amount shown in the Unearned Legal Fees Revenues have not been earned.
h. 3% percentage tax on December gross receipts of 65,000 is due for payment.

Required: Journalize the adjusting entries.

Provide computation if necessary.