2. The year-end, unadjusted trial balance dated December 31, 20-3, for Kareem Industries showed Supplies at $5050 and Prepaid Insurance at $2100. The accounting clerk prepared the trial balance. Subsequently, the senior accountant was given the following additional information: 1. An inventory count of supplies revealed $1450 to be on hand. 2. The Prepaid Insurance account consisted of one 12-month policy purchased on July 1, 20-3. 3. An invoice for advertising done in December arrived in January, 20-4. The amount of the invoice was $10 000. 4. A $20 000 cash advance for services of Kareem Industries was deposited on December 15, 20-3. The accounting clerk credited the entire amount to Fees Earned. By December 31st, Kareem Industries had performed 30% of the work. A. Use the T-accounts in your Workbook to calculate and show the adjustments required. B. Prepare the adjusting journal entries dated December 31, 20-3. C. Suppose the senior accountant failed to do the adjusting entry for each situation described in 1 to 4 above. For each situation, identify whether the omission of the adjusting entry would cause Assets, Liabilities, and Net Income to be correctly stated, overstated, or understated. Use the chart below, which also appears in your Workbook. Adjustment Omission Assets Liabilities Net Income 1. Supplies 2. Insurance 3. Late Invoices 4. Unearned Revenue