A list of various reasons for adjusting account balances is presented below, along with an unadjusted trial balance presented for the year ended December 31.

1. As of December 31, the equipment has been used for two full years. Approximately $1,224 of the equipments usefulness is consumed each year.
2. On December 31, the company performed $420 of services for a customer but has not yet recorded or billed the customer.
3. On December 31, the company received an e-mail from its utility company indicating the company used $270 of services during December. The company has not recorded this item because the $270 will not be paid until January 15.
4. Salaries and wages totaling $353 for the second half of December have not yet been paid or recorded.
5. No adjustment is needed for this account.

Account Name	Debit	Credit
1. Cash	$ 6,020
2. Accounts Receivable	520
3. Equipment	12,060
4. Accumulated Depreciation		$ 2,346
5. Accounts Payable		720
6. Salaries and Wages Payable		0
7. Common Stock		10,000
8. Retained Earnings		5,077
9. Service Revenue		12,054
10. Salaries and Wages Expense	7,705
11. Depreciation Expense	1,122
12. Utilities Expense	2,770
Totals	$30,197	$30,197

Required:

1. For each account balance numbered 1-12, choose an appropriate reason from a-d that explains why that particular account balance needs to be adjusted or choose e. when no adjustment is needed.

2. Prepare the adjusting journal entries required as of December 31.

Journal entry worksheet:

1. Record the adjusting entry if $1,224 of the equipments usefulness is consumed each year.
2. Record the adjusting entry if the company has performed $420 of services for a customer but has not yet recorded or billed.
3. Record the adjusting entry if the company has used $270 of services during December but will not be paid until January 15.
4. Record the adjusting entry if Salaries and wages totaling $353 for the second half of December have not yet been paid or recorded.