LRB Consulting owned by Lennox Bronson has a

December 31 #1692
LRB Consulting, owned by Lennox Bronson, has a December 31 year-end. On January 20,
2015, all invoices and related information were provided for posting year-end adjusting entries.
The prepaid expense accounts in the trial balance, shown below, have not been adjusted during
the year. The information is as follows.a. On October 1, 2014, LRB began a three-and–a-half-
year service contact to supply consulting services at an annual rate of $56,496. Invoicing is to
be done quarterly.b. On December 31, 2014, LRB received a $6,000 deposit for services to be
rendered in February. The total value of the services to be rendered is $36,000. No entry has
been made for this transaction.c. Depreciation for 2014 has not been recorded. The expected
lives for the assets listed on the trial balance are shown below. No assets have been purchased
or sold in the current year. Complete a compound journal entry.d. Business insurance and auto
insurance were purchased and paid for. The insurance coverage begins on January 1, 2014,
and March 1, 2014, respectively. Both policies are for 12-month periods.Instructions1.
Journalize the adjusting and correcting entries. Add additional accounts as needed.2.
Determine the balances of the accounts affected by the adjusting and correcting entries and
prepare an adjusted trial balance. Assume no additional investments during the period.View
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LRB Consulting owned by Lennox Bronson has a December 31

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