It has an expected useful life of three years and no

Question

Kristi Williams offers family counseling services specializing in financial and marital problems. Kristi Williams Family Counseling Services UNADJUSTED TRIAL BALANCE December 31, 20--

1	Cash	8,730.00
2	Office Supplies	700.00
3	Prepaid Insurance	600.00
4	Office Equipment	18,000.00
5	Computer Equipment	6,000.00
6	Notes Payable		8,000.00
7	Accounts Payable		500.00
8	Kristi Williams, Capital		11,400.00
9	Kristi Williams, Drawing	3,000.00
10	Client Fees		35,800.00
11	Wages Expense	9,500.00
12	Rent Expense	6,000.00
13	Utilities Expense	2,170.00
14	Miscellaneous Expense	1,000.00
15	Totals	55,700.00	55,700.00

Information for year-end adjustments is as follows:

(a) Office supplies on hand at year-end amounted to $100.

(b) On January 1, 20--, Williams purchased office equipment that cost $18,000. It has an expected useful life of 10 years and no salvage value.

(c) On July 1, 20--, Williams purchased computer equipment costing $6,000. It has an expected useful life of three years and no salvage value. Assume that Williams computes depreciation to the nearest full month.

(d) On December 1, 20--, Williams paid a premium of $600 for a six-month insurance policy.

Required:

1.	Prepare the work sheet for the year ended December 31, 20--.
2.	Prepare adjusting entries in a general journal.

CHART OF ACCOUNTS
Kristi Williams
General Ledger
ASSETS 101 Cash 142 Office Supplies 145 Prepaid Insurance 181 Office Equipment 181.1 Accumulated Depreciation-Office Equipment 187 Computer Equipment 187.1 Accumulated Depreciation-Computer Equipment LIABILITIES 201 Notes Payable 202 Accounts Payable EQUITY 311 Kristi Williams, Capital 312 Kristi Williams, Drawing	REVENUE 401 Client Fees EXPENSES 511 Wages Expense 521 Rent Expense 523 Office Supplies Expense 533 Utilities Expense 535 Insurance Expense 541 Depreciation Expense-Office Equipment 542 Depreciation Expense-Computer Equipment 549 Miscellaneous Expense