20 Project 4: Adjustments Fido's Food Mart Unadjusted Trial Balance December 31, 20XX Account Title Debits Credits 50,938 12,250 84,720 1,850 480 30,550 12,250 Cash Accounts Receivable Inventory Supplies Prepaid Insurance Equipment Vehicle Accumulated Depreciation - Equipment & Vehicle Accounts Payable Unearned Revenue (Gift Cards) Bonds Payable (mature 12/31/XX) Common Stock (200 shares @ $210/share, par $210) Retained Earnings Sales Revenue Operating Expenses Depreciation Expense Insurance Expense Rent Expense Supplies Expense Wages Expense Totals 0 62,128 375 12,000 42,000 0 132,625 34,840 0 0 5,750 0 15,500 249,128 249,128 The account balances at the end of the fourth month shown above are direct from the Unadjusted Trial Balance Required: 1. Fido's Food Mart purchased a three-month automobile insurance policy on December 1, 20XX for $480 and recorded it as Prepaid Insurance. Now that it is the end of the fiscal year, the accountant needs to prepare the adjusting journal entry to account for one month of insurance that was used. a. Show the balancing effects on the accounting equation b. Record the adjusting journal entry in two-line format using a debit and a credit. c. Show T-Accounts with beginning balances, transactions & end balances