2. Prepare the adjusting entries you would make at December 31, 2019, for each of these items.

3. Conceptual Connection: What would be the total effect on the income statement and balance sheet if these entries were not recorded? Input all amounts as positive values.

Prepayments, Collections in Advance Greensboro Properties Inc. owns a building in which it leases office space to small businesses and professionals. During 2019, Greensboro Properties engaged in the following transactions: a. On March 1, Greensboro Properties paid $10,500 in advance to Patterson Insurance Company for 1 year of insurance beginning March 1, 2019. The full amount of the prepayment was debited to prepaid insurance. b. On May 1, Greensboro Properties received $30,000 for 1 year's rent from Angela Cottrell, a lawyer and new tenant. Greensboro Properties credited unearned rent revenue for the full amount collected from Cottrell. c. On July 31, Greensboro Properties received $240,000 for 6 months' rent on an office building that is occupied by Newnan and Calhoun, a regional accounting firm. The rental period begins on August 1, 2019. The full amount received was credited to unearned rent revenue. d. On November 1, Greensboro Properties paid $4,500 to Pinkerton Security for 3 months' security services beginning on that date. The entire amount was debited to prepaid security services. Required: 1. Prepare the journal entry to record the receipt or payment of cash for each of the transactions. March 1 Prepaid Insurance 10,500 Cash 10,500 (Record prepayment for insurance) May 1 Cash 30,000 1 30,000 Unearned Rent Revenue (Record receipt of cash for rent) July 31 Cash 240,000 Unearned Rent Revenue 240,000 (Record receipt of cash for rent) Nov. 1 Prepaid Security Services 4,500 Cash 4,500 (Record prepayment for services) 3. Conceptual Connection: What would be the total effect on the income statement and balance sheet if these entries were not recorded? Input all amounts as positive values. Revenues 64 Expenses 64 Net income 64 Assets 64 Liabilities 64 Retained earnings 64 3. Conceptual Connection: What would be the total effect on the income statement and balance sheet if these entries were not recorded? Input all amounts as positive values. Expenses would be overstated and assets would be overstated. Expenses would be overstated and assets would be understated. Expenses would be understated and assets would be overstated. Expenses would be understated and assets would be understated. Revenues would be overstated and liabilities would be understated. Revenues would be overstated and liabilities would be overstated. Revenues would be understated and liabilities would be overstated. Revenues would be understated and liabilities would be understated. Retained earnings - by $ 3. Conceptual Connection: What would be the total effect on the income statement and balance sheet if these entries were not recorded? Input all amounts as positive values. Revenues Expenses Overstated Net income Understated Assets Liabilities Retained earnings