12 Quinn Spellman formed Spellman Tutoring, Inc (STI) and it has since become a popular provider of academic tutoring within the local community. You are working with the company to prepare the 20X1 financial statements and Quinn provides you with the below 12/31/20X1 account balances, all of which are normal. As indicted by the question mark, certain balances have been intentionally omitted. A/C # Account Description Balance A/C # Account Description Balance 100 Cash $? 300 Common stock $30,000 105 Accounts receivable 12,000 305 Retained earnings 20,000 110 Prepaid insurance expense 9,000 310 Dividends 20,000 115 Teaching supplies 38,000 400 Tutoring Revenue 215,000 120 Copy Machine 16,000 500 Advertising Expense 40,000 125 Accumulated depreciation 13,320 505 Depreciation expense 0 130 Land 25,000 510 Equipment Rental Expense 9,000 200 Accounts Payable- SSC 7,000 515 Insurance Expense 7,000 205 Interest Payable 0 520 Interest expense 0 210 Tutoring Advance Pay 0 525 Miscellaneous Expense ? 215 Wages Payable 0 530 Supplies Expense 0 220 Utilities Payable 0 535 Utilities expense 11,000 225 Notes payable 40,000 540 Wages expense 105,000 For purposes of this question, assume STI (Spellman Tutoring, Inc) has net income for the twelve months ended 12/31/20X1 totaling $43,000. Please consider the following 4 transactions and select the answer choice below representing the updated 20X1 net income after considering these items. (i) STI purchases all teaching supplies on account from vendor SSC. On New Year's Day, January 1, 20X2, while the company was closed for business, Quinn counted the teaching supplies (a/c 115) noting that $18,000 of supplies were on hand. (ii) Also on January 1, 20X2, Quinn mailed invoices for $4,000 of tutoring services performed in late December 20X1. (iii) On Monday, January 4 20X2 Quinn received the December utility bill in the amount of $800 and (iv) Also on Monday, January 4, Quinn paid employee wages totaling $2,500. STI employees work Monday-Friday, receive paid holidays, and never work overtime. Each Monday employees are paid for the prior 5-day work week. A. $24,200 B. $25,700 C. $19,700 D. $23,700 E. None of the answers provided are correct. Q#13 Consider the 4 situations described in Q#12 and consider the resulting journal entries. In class and in your lecture notes we categorized adjusting entries as to type. How many of the adjusting journal entries required for the 4 situations described would be considered an adjustment of an existing deferred expense? A.0 B. 1 C.2 D. 3 E. 4