1.Referring to the balances below, prepare annual adjusting entries as of December 31, 2020 for Galecki Consulting:

Acc receivable 85600

Accumulater depreciation equipment 10750

Allowance for doubful accounts 1600

Cash 21600

Equipment 43000

Notes payable 50000

Office expense 26900

Prepaid insurance 2800

Rent expense 42000

Retained earnings 18250

Salaries and wages expense 256800

Service revenue 427500

Supplies 12600

Utilities expenses 16800

a.Fees received in advance from clients and included in Service Revenue initially, $9,000.

b.Services performed for clients that were not recorded by December 31, $12,600.

c.Bad debt expense for the year is $3,650.

d.Insurance expired during the year $2,100. 5. Equipment is being depreciated at 10% per year.

e.Gator gave the bank a 90-day, 12% note for $50,000 on December 1, 2020.

f.Rent of the building is $3,000 per month. The rent for 2020 has been paid, as has that for January and February 2021. The total rental payment was initially recorded in Rent Expense.

g.Office salaries and wages earned but unpaid December 31, 2020, $2,650.