Question

The following are the trial balance and the other information related to Martinez Perez, a consulting engineer. MARTINEZ PEREZ, CONSULTING ENGINEER TRIAL BALANCE DECEMBER 31, 2017 Debit Credit $29,500 56,400 $718 1,730 1,050 33,800 Cash Accounts Receivable Allowance for Doubtful Accounts Supplies Prepaid Insurance Equipment Accumulated Depreciation Equipment Notes Payable Owner's Capital Service Revenue Rent Expense (13 months of rent) Salaries and Wages Expense Utilities Expenses Office Expense 8,450 7,200 35,342 112,964 9,334 30,360 1,750 750 Totals $164,674 $164,674 1. Fees received in advance from clients $6,010, which were recorded as revenue. 2. Services performed for clients that were not recorded by December 31, $5,145. 3. Bad debt expense for the year is $1,294. 4. Insurance expired during the year $471. 5. Equipment is being depreciated at 10% per year. 6. Martinez Perez gave the bank a 90-day, 10% note for $7,200 on December 1, 2017. 7. Rent of the building is $718 per month. The rent for 2017 has been paid, as has that for January 2018, and recorded as Rent Expense. 8. Office salaries and wages earned but unpaid December 31, 2017, $2,292.

Answer 1

For revenues we should deduct the unearned revenue of 6010, and add the revenue which was not recorded 5145 other entries are all given

Martinez Perez,Consulting Engineer

Income Statement

For the year end Dec 31 2017

Revenues:
Services Revenue	111,499
Expenses:
Rent expenses	9334
salaries and wages expenses	30,360
utilities expenses	1750
offices expenses	750
Depreciation expenses	8450
insurance expenses	471
Bad debt expenses	1294
Interest expenses	60
Total Expenses	52469
Net Income	59030