Adjusting Entries Instruction Chart of Accounts General Journal Final Question Instructions Reynolds Computer Service others data processing services to retail clothing stores. The following data have been collected to aid in the preparation of adjusting entries for Reynolds Computer Service for 2010 n. Computer equipment was purchased from IBM in 2016 at a cost of $560,000 Annual depreciation is $127.500, d. A to insurance policy for a 2 year perlod beginning September 1, 2019, was purchased from Good Hands Insurance Company for $12,060 cash. The entire amount of the propayment was debted to prepaid insurance (Assume that the beginning balance of prepaid insurance was $0 and that there were no other debits or credits to that account during 2019) c. Reynolds him a contract to perform the payrol accounting for Dayton's Department Stores. At the end of 2010,85,750 of services have been performed under this contract but are unbilled d. Reynolds ronto 10 computer terminais for 500 per month por terminal from Extreme Terminals Inc. Al December 31, 2010, Raynolds owes Extreme Terminals for halt a month's ront on each terminal. The amount owed is unrecorded Parys Tax Service prepays or for time on Reynoks computer. When payments are received from Perry's Tax Service Reynolds credits untamed rent revenue. At December 31, 2019, Reynolds has eamed 51,000 for computer time used by Perry's Tax Service during December 2019 Required: 1. Prepare acusting entries for each of the transactions 2. Conceptual Connection: What would be the effect on the balance sheet and the come statement the accountant failed to make the above adjusting entries? djusting Entries = General Journal Final Question Instructions Chart of Accounts Instructions General Journal 1. Prepare adjusting entries for each of the transactions on December 31 General Journal Instructions IMPACT ON FINANCIAL STATEMEN BALANCE SHEET INCO GENERAL JOURNAL LIBUS ASSETS EQUITY REVENUE CREDIT DEDIT POST REF DATE ACCOUNT TITLE Adjusting Entries 1 1 4 6 1 . Adjusting Entries Instructions Chart of Accounts General Journal Final Question Instructions General Journal Final Question 2. Conceptual Connection: What would be the effect on the balance sheet and the income statement if the accoun a. Net Income and stockholders' equity would and assets would Med to make the above adjusting entries? b. Net income and stockholders' equity would and assets would c. Net income and stockholders' equity would and assets would d. Net Income and stockholders' equity would and liabilities would o. Net Income and stockholders' equity would and liabilities would remain unchanged bo understated bo overstated Instructions Reynolds Computer Service after data processing services to retul clothing stores. The fotowing cats have been collected to aid in the preparation of adjusting entries for Reynolds Computer Service for 2019: a Computer equpment was purchased from IBM in 2016 at a cost of $500,000. Annun depreciation is $127,500 b. A tre insurance policy for a 2-year period beginning September 1, 2019, was purchased from Good Hands Insurance Company for $12.960 cash. The entire amount of the prepayment was debited to prepaid insurance. (Assume that the beginning balance of prepaid insurance was $0 and that there were no other dobits or credits to that account during 2013.) c. Reynolds has a contract to perform the payroll accounting for Dayton's Department Stores. At the end of 2018, S5,760 of services have been performed under this contract but are unbilled. d Reynolds renes 10 computer terminals tor S06 per month per tortinal from Extreme Terminals Inc At December 31, 2019, Reynolds crwes Extrome Terminals for halt a month's rent on each terminal. The amount owed is unrecorded. .. Perry's Tax Service prepays rent for time on Reynoldi computer. When paymeets are received from Perry's Tux Service, Reynolds credits unoamed ront revenue. M. December 31, 2019. Armoids has oamed $1.000 for computer time used by Perry's Tax Service during December 2019 Required: 1. Prepare adjusting entries for each of the transactions 2. Conceptual Connection: What would be the effect on the balance sheer and the income statement il me accountant falled to make the above adjusting entries