A.

 To record 1 month of insurance expense for November-December 2016:

Insurance expense 200
Prepaid insurance 200

To record YE inventory:

Supplies expense 1,050
Supplies (inventory) 1,050

 To record Depreciation of equipment:

Depreciation expense - Equipment 375
Accumulated depreciation - Equipment 375

 To record Earned revenue:

Unearned Consulting fees 250
Consulting revenue 250

 To record accrual salary:

Salaries expense 210
Salaries Payable 210


To record unbilled revenue:
Account receivable 1,800
Unearned revenue 1,800

B.
1.
Benny’s Time Management Consulting Company
Adjusted Trial Balance
December 31, 2016
Debit Credit
Cash $7,950
Accounts Receivable 1,800
Prepaid Insurance 2,200
Supplies 2,670
Equipment 26,000
Accumulated Depreciation, equipment 375
Accounts Payable 6,200
Salaries Payable 210
Unearned Consulting fees 2,750
Common Shares 10,000
Retained Earnings 19,600
Consulting Revenue 5,950
Depreciation Expense – Equipment 375
Salaries Expense 1,610
Insurance Expense 200
Rent expense 1,000
Supplies expense 1,050
Utilities expense 230
$45,085 $45,085

Calculations:
Accounts Receivable: 0+$1,800= $1,800
Prepaid Insurance: $2,400 – 200=$2,200
Supplies expense: 0+$1,050=$1,050
Accumulated Depreciation, equipment= 0+ $375=$375
Depreciation expense, equipment = 0+ $375=$375
Salaries Payable: 0+$210 = $210
Salaries expense: $1,400+210= $1,610
Unearned Consulting fees: $3,000-250=$2,750
Consulting revenue: $3,900+250+1,800=$5,950
2.
Benny’s Time Management Consulting Company
Income Statement
For the Year Ended December 31, 2016

Revenues
Consulting revenue $5,950
Expenses
Depreciation Expense – Equipment 375
Salaries Expense 1,610
Insurance Expense 200
Rent expense 1,000
Supplies expense 1,050
Utilities expense 230
Total Expenses 4,465
Net Income $1,485

3.
 Benny’s Time Management Consulting Company
Statement of Retained Earnings
For the Year Ended December 31, 2016

Retained earnings, January 1 $19,600

Add: Net Income 1,485
Retained earnings, December 31 $21,085

4.
Benny’s Time Management Consulting Company
Statement of Financial Position
December 31, 2016

Assets
Current Assets
Cash $7,950
Accounts Receivable 1,800
Supplies 2,670
Total current assets 12,420
Prepaid Insurance 2,200
Equipment 26,000
Less: Accumulated Depreciation, equipment (375) 25,625
Total assets $40,245

Liabilities and Shareholders’ Equity

Current liabilities
Accounts Payable 6,200
Salaries Payable 210
Unearned Consulting fees 2,750
Total shareholder’s equity $9,160
Shareholder’s equity
Common Shares 10,000
Retained Earnings 21,085
Total Shareholder’s equity $31,085
Total liabilities and shareholders’ equity $40,245
 5. Closing journal entries:
Revenues 5,950
Income summary 5,950

Income summary 4,465

Depreciation Expense – Equipment 375
Salaries Expense 1,610
Insurance Expense 200
Rent expense 1,000
Supplies expense 1,050
Utilities expense 230

Income summary 1,485

Retained earnings 1,485

Calculation for Income summary last step:

$5,950- 4,465 = $1,485