Nichols Company had the following items that required adjustment at December 31, 2019. a. Electricity used during

Question:

Nichols Company had the following items that required adjustment at December 31, 2019.
a. Electricity used during December was estimated to be $320. This amount will be paid in January.
b. Owed wages to employees of $3,250 that were earned in December but unrecorded and unpaid as of the end of the year.
c. Services of $4,900 were performed in December but unbilled and unpaid as of year end.
Required:
1. Prepare the adjusting entries needed at December 31.
2. What is the effect on the if these adjusting entries were not made?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...