5: You have been called in to examine the records of Gem Ltd as of December 31, 2018, the company year-end. In the course of the following examination you discover the following: 1. Accrued interest on loans owed by Gem totaled $15,000 as of December 31, 2018. 2. Accrued salaries owed by Gem amounted to 3 days at $500 per day as of December 31, 2018. 3. On January 1, 2018 the office supplies account had a normal account balance of $2,000. Additional purchases of office supplies made during the year amounted to $4,000 and were debited to the office supplies account. As of December 31, 2018, office supplies of $1,000 remained on hand. Prepaid Advertising contains a debit balance of $2,400. The balance represents the amount Gem paid on October 1, 2018 for a series of ads in a monthly magazine. The ads will run over 12 months, beginning with the magazine's November 2018 issue. 5. The unearned revenue account contained a normal account balance of $12,000, received August 31, 2018 for 12 months of service to be performed starting September, 2018. 6. Gem rendered services to clients in December, 2018 amounting to $6,000. The services have not been paid for or entered in Gem's accounting records. 7. A customer paid $3,000 in December 2018 for work to be started March 1, 2019. The following journal entry was made: Debit Cash for $3,000 Credit Service Revenue for $3,000 DELL 5: You have been called in to examine the records of Gem Ltd as of December 31, 2018, the company year-end. In the course of the following examination you discover the following: 1. Accrued interest on loans owed by Gem totaled $15,000 as of December 31, 2018. 2. Accrued salaries owed by Gem amounted to 3 days at $500 per day as of December 31, 2018. 3. On January 1, 2018 the office supplies account had a normal account balance of $2,000. Additional purchases of office supplies made during the year amounted to $4,000 and were debited to the office supplies account. As of December 31, 2018, office supplies of $1,000 remained on hand. Prepaid Advertising contains a debit balance of $2,400. The balance represents the amount Gem paid on October 1, 2018 for a series of ads in a monthly magazine. The ads will run over 12 months, beginning with the magazine's November 2018 issue. 5. The unearned revenue account contained a normal account balance of $12,000, received August 31, 2018 for 12 months of service to be performed starting September, 2018. 6. Gem rendered services to clients in December, 2018 amounting to $6,000. The services have not been paid for or entered in Gem's accounting records. 7. A customer paid $3,000 in December 2018 for work to be started March 1, 2019. The following journal entry was made: Debit Cash for $3,000 Credit Service Revenue for $3,000 DELL