2 [50 points] The following information is available for ABC Inc. on January 31 for the year just ended. a. ABC Inc. purchased equipment in a previous year for $41,750 and expects to sell this equipment for $2,125 after five years. b. A review of the $24,000 unadjusted balance in the prepaid insurance account shows a remaining balance of $21,300 at the end of the year. c. $4,000 of the $4,500 rent paid to ABC Inc. in advance has not yet been earned. d. The yearly depreciation on the building is $500. e. Property taxes of $9,000 have accrued but are unrecorded. f. Interest of $1,440 has accrued on a note payable but is unrecorded. g. $1,700 of the advertising paid for in advance has been published by the newspaper. h. The yearly depreciation on the furniture is $550. i. This year's advertising bill for $6,500 is unrecorded and unpaid. j. A review of the $11,000 unadjusted balance in the prepaid rent account shows a remaining balance of $10,000 at the end of the year. Prepare the required adjusting entries at January 31, 2014. Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (i.e., January 15 would be 15/Jan). For each journal entry, indicate how each account affects the balance sheet (Assets, Liabilities, Equity). Use + for increase and - for decrease. For example, if an account decreases equity, choose '-Equity'. Date General Journal Account/Explanation Page GJ8 F Debit Credit Effect On Balance Sheet Prepare the required adjusting entries at January 31, 2014. Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (i.e., January 15 would be 15/Jan). For each journal entry, indicate how each account affects the balance sheet (Assets, Liabilities, Equity). Use + for increase and - for decrease. For example, if an account decreases equity, choose '-Equity'. Date General Journal Account/Explanation Page GJ8 F Debit Credit Effect On Balance Sheet = + ||-+ = + = + = +