ACCRUED EXPENSE ADJUSTING ENTRIES Manning Manufacturing Inc. had the following items that require adjustment at yearend.

a. Salaries of $3,180 which were earned in December are unrecorded and unpaid.

b. Used $2,598 of utilities in December which are unrecorded and unpaid.

c. Interest of $1,200 on a note payable has not been recorded or paid.

Required:

. Prepare the adjusting entries needed at December 31.

. What is the effect on the financial statements if these adjusting entries are not made?

Cornerstone Exercise