Adjusting and Closing Entries Selected Accounts before adjustment: The following information was obtained from the accounting records: 1. An inventory of supplies indicates supplies with a cost of $1,000 remain 2. The beginning balance of Prepaid insurance represents a one-year policy purchased the previous year. The July 1 amount represents the purchase of a two-year policy. 3. Of the Unearned Revenue, 60% remained unearned at year-end. 4. The Equipment has a ten-year life and is depreciated using the straight-line method. 5. Salaries are paid every two weeks on Friday. The next payroll cycle ends on January 3rd. Total payroll on that date will be $5,000. The payroll cycle is 10 paid days. 6. Services rendered but unbilled at year end amounted to $4,500. Required: 1. Prepare journal entries and post to the T-accounts the necessary year-end adjusting and closing entries. 2. What are the two objectives of the closing process