financeMystic Masters, Inc., provides fortune-telling services over the Internet. In recent years the company has experienced severe financial difficulty. Its accountant prepares to adjust entries on a monthly basis, and close entries on an annual basis, on December 31. An adjusted trial balance dated December 31, 2011, follows.
$$
\begin{array}{|cc}
\hspace{3cm} & \text{MYSTIC MASTERS, INC.
ADJUSTED TRIAL BALANCE}\\
\hspace{3cm} & \text{DECEMBER 31, 2011}\\
\hspace{4cm} &\hspace{2cm} & \textbf{Debits} & \textbf{Credits}\\
\text { Cash } & \cdots \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots \cdots\cdots\cdots\cdots& \$ 960 & \\
\text { Accounts receivable } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 300& \\
\text {Unexpired insurance } &\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 2,000 & \\
\text {Prepaid rent } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 1,500 & \\
\text { Supplies } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 200& \\
\text { Furniture and fixture} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 8,400& \\
\text { Accumulated depreciation: furniture and fixture } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & &\$5,200 \\
\text { Accounts payable} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & & 6,540 \\
\text { Notes payable } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots& & 24,000\\
\text { Salaries payable } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots \cdots\cdots\cdots& &1,700 \\
\text { Interest payable } & \cdots\cdots\cdots\cdots\cdots\cdots \cdots\cdots\cdots& & 360\\
\text {Unearned client revenue} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & & 200\\
\text { Capital stock } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & & 4,000 \\
\text {Retained earnings } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & & 2,600\\
\text { Dividends } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & & 52,000 \\
\text { Client revenue earned } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & & 170,000\\
\text {Insurance expense } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 6,000 & \\
\text { Office rent expense} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 9,000 & \\
\text { Supplies expense } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots&440 & \\
\text { Salary expense } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots \cdots\cdots\cdots& 4,800& \\
\text { Depreciation expense: furniture and ficture } & \cdots\cdots\cdots\cdots\cdots\cdots \cdots\cdots\cdots& 1,400 & \\
\text {Office and telephone expense } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 3,000 & \\
\text {FueInternet service expense } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 4,900 &\\
\text { Legal expense } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots \cdots\cdots\cdots& 1,500& \\
\text { Interest expense} & \cdots\cdots\cdots\cdots\cdots\cdots \cdots\cdots\cdots& 4,000 & \\
\text {Miscellaneous expense} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 5,000 & \\
\hspace{4cm} &\hspace{2cm} & \$96,600 & \$96,600\\
\end{array}
$$
Instructions\
e. Identify information that the company is apt to disclose in the notes that accompany the financial statements prepared in part a. 1st EditionGlen Krutz412 solutions

16th EditionGeorge C. Edwards III, Martin P. Wattenberg, Robert L. Lineberry269 solutions

11th EditionMichael D. Reisig, Todd R. Clear160 solutions

9th EditionChristina Dejong, Christopher E. Smith, George F Cole105 solutions