228. The unadjusted trial balance and the adjustment data for Porter Business Institute, Inc. are shown below along with adjusting entry information. What is the impact of the adjusting entries on the...

228. The unadjusted trial balance and the adjustment data for Porter Business Institute, Inc. are shown below along with adjusting entry information. What is the impact of the adjusting entries on the balance sheet? Show the calculation for total assets, total liabilities, and stockholders’equity without the adjustments; show the calculation for total assets, total liabilities, and stockholders’ equity with the adjustments. Which one provides the most accurate presentation of the balance sheet?

Additional information items:
a. The Prepaid Insurance account consists of a payment for a 1 year policy. An analysis of the insurance invoice indicates that one half of the policy has expired by the end of the December 31 year-end.
b. A cash payment for space sublet for 8 months was received on July 1 and was credited to Unearned Rent.
c. Accrued interest expense on the note payable of $1,000 has been incurred but not paid.

229. Prepare adjusting entries for the year ended December 31, for each of these separate situations. Assume that prepaid expenses are initially recorded in asset accounts and that fees collected in advance are initially recorded as liabilities.

a. The Prepaid Rent account has a debit balance of $8,000 before adjustment, representing a prepayment for four months’ rent made on December 1 of the current year.
b. One-third of the work related to $18,000 of cash received in advance was performed during this period.
c. Unpaid accrued salaries at December 31 amounts to $15,000
d. Work was completed for a client on December 31 in the amount of $21,000, but was not previously billed or recorded.
e. Estimated depreciation on office equipment is $27,000.