Review the unadjusted trial balance below and prepare adjusting journal entries to record the various described items
below. Record in the space provided at the bottom of this spreadsheet. After completing journal entries, complete the
adjusted trial balance below. Lastly complete the income statement and balance sheet. The balance sheet must
balance. Save completed file with your name in the file name and submit to LEO.

1 Belair Corporation's equipment had an original life of 140 months, and the straight-line depreciation method is used. As of January 1, the equipment was 40 months old. The equipment will be worthless at the end of its useful life.

2 As of the end of the month, Belair Corporation has provided services to customers for which the earnings process is complete. Formal billings are normally sent out on the first day of each month for the prior month's work. January's unbilled work is $25,000.

3 Utilities used during January, for which bills will soon be forthcoming from providers, are estimated at $1,500.

4 A review of supplies on hand at the end of the month revealed items costing $3,500.

5 The $2,400 balance in prepaid insurance was for a 6-month policy running from January 1 to June 30.

6 The unearned revenue was collected in December of 2014. 60% of that amount was actually earned in January, with the remainder to be earned in February.

7 The loan accrues interest at 1% per month. No interest was paid in January.

8 Previously declared and recorded dividend of $2,500 was paid