Adiusting Entry Practice Problem HINT: Before you make the adjusting entry, be sure to determine if they initially recorded that transactions under the regular approach or the alternative approach. Looking at the trial balance should help you make this determination. Welte and Moore Company are in the process of preparing their financial statements for the MONTH ended December 31, 2009. The Company has provided you with the following selected account balances form its UNADJUSTED trial balance: DEBIT CREDIT Cash s 20,000 18,000 125,000 $10,000 Insurance Expense Supplies Expense Service Revenue Accounts Payable Unearned Service Revenue 36,000 15,000 110,000 20,000 60,000 Additional Data: At the end of the year it was determined that $5,000 of supplies were still on hand. The employees have earned money for work done during December, but for which they will not be paid until January 2010. The amount was $3,000. The Company paid their fire insurance on December 1, 2009 for 9 months in advance. (a) (b) (c) (d) The machinery is expected to have a useful life of 10 years with an estimated scrap value (e) Customers paid the Company $60,000 in advance for services to be performed equally REQUIRED: ON THE NEXT PAGE PREPARE THE PROPER ADJUSTING ENTRIES of $5,000. over 3 months- December 2009, January (2010) and February (2010). REQUIRED AT 12-31-09. SHOW ALL COMPUTATIONS CLEARLY!!! USE THE FORMAT PROVIDED. The company adjusts its books monthly