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 $300 for work completed. The Service Revenue unadjusted balance as of December 31 is $5,000. Adjustment Type: Accrual Accounts Receivable Dec. 31 Service Revenue Used prepaid insurance of $3,040. The Prepaid Insurance unadjusted balance as of December 31 is $7,000. Adjustment Type: Insurance Expense Prepaid Insurance Employees earned $700 in salaries that will be paid next month. The Salaries Expense unadjusted balance as of December 31 is $5,600. Adjustment Type: Salaries Expense Salaries Payable