Activity 4.a - Using T-accounts to Analyze Adjustments Fill in the t-accounts for each situation and label each transaction as Deferrals/Prepaid or Accrual. Calculate the adjusted balance and use a Bal. post reference to show the ending balance of each account. Customers were billed for $2,100 for work completed. The Service Revenue unadjusted balance as of December 31 is $6,200. Adjustment Type: Accrual Accounts Receivable Service Revenue Incurred interest expense of $4,200. Adjustment Type: Interest Expense Interest Payable Incurred interest expense of $4,200. Adjustment Type: Interest Expense Interest Payable A two year insurance policy for $10,560 was purchased on November 1 of the current year. Record the transaction for the year ended December 31. Adjustment Type: Insurance Expense Prepaid Insurance