3. EXERCISE (ADJUSTING ENTRIES) Security Service Company adjusts its accounts at the end of the month. On November 30, adjusting entries are prepared to record: Depreciation expense for November. b Interest expense that has accrued during November. Revenue earned during November that has not yet been billed to customers. Salaries, payable to company employees, that have accrued since the last payday in November. The portion of the company's prepaid insurance that has expired during November. Earning a portion of the amount collected in advance from a customer, Harbor Restaurant. e f Indicate the effect of each of these adjusting entries on the major elements of the company's income statement and balance sheet-that is, on revenue, expenses, net income, assets, liabilities, and owners equity. Organize your answer in tabular form, using the column headings shown and the symbols I for increase, D for decrease, and NE for no effect. The answer for adjusting entry a is provided as an example. Balance Sheet Income Statement Owners Liabilities + Equity D Adjusting Entry Net Income Assets Revenue Expenses NE D NE a 4. EXERCISE (ADJUSTING ENTRIES) The Freemont Flyers, a professional soccer team, prepares financial statements on a monthly basis. The soccer season begins in May, but in April the team engaged in the following transactions: a Paid $1,500,000 to the municipal stadium as advance rent for use of the facilities for the six- month period from May 1 through October 31. This payment was initially recorded as Prepaid Rent. b Collected $6,000,000 cash from the sale of season tickets for the team's home games. The entire amount was initially recorded as Unearned Ticket Revenue. During the month of May, the team played several home games at which $750,000 of the season tickets sold in April were used by fans. Prepare the two adjusting entries required on May 31. S7