All of the transactions of Harding Trading Co. for the year have been journalized and posted. The following information has been gathered for the adjustment process as of December 31, 2018: A. The Supplies account shows a balance of $1,070. A count of supplies revealed $390 on hand. B. The $720 premium relating to a one-year insurance policy was paid on December 1, 2018 C. The company's equipment, which was purchased last year, depreciates at a rate of $1,100 per year D. On September 30, 2018, a customer paid $9,000 in advance for services; as of December 31, 2018, services in the amount of $2,700 had been performed for this customer E. Employees are paid $2,500 on Fridays for the 5-day workweek, which ends on that Friday. However, December 31, 2018 falls on a Thursday F. The company has completed $520 of work for customers; the customers have not yet been billed and the related been recorded revenue has not Required: a. Prepare the required adjusting entries required at December 31, 2018. b. For each of the adjusting items, indicate the amount and the direction of effects of the adjusting journal entry on the elements of the balance sheet and income statement. Complete the following table by entering the amount and the direction (+ for increase, - for decrease) or leave blank for no effect Required A Required B Prepare the required adjusting entries required at December 31, 2018. (If no entry Entry Required" in the first account field.) View transaction list EX Record adjusting entry given that the supplies account shows a balance of $1,070. A Count of supplies revealed $390 on hand at December 31, 2018. 1 ce of 2 Record adjusting entry given that a one-year insurance policy was purchased for $720 on December 31, 2018. It was recorded as Prepaid Insurance at that time 2018. Record adjusting entry given that office equipment depreciates at a rate of $1,100 per year. The equipment has been owned all year. 3 Credit Record adjusting entry given thac a client paid $9,000 in advance for services to be rendered later, which was recorded as unearned revenue. Of this amount, $2,700 was earned as of December 31, 2018. Note: journal entry has been entered Required A Required B For each of the adjusting items, indicate the amount and the direction of effects of the adjusting journal entry on the elements of the balance sheet and income statement. Complete the following table by entering the amount and the direction (+ for increase, - for decrease) or leave blank for no effect. Balance Sheet Income Statement Total Liabilities Stockholders Equity Transaction Total Assets Revenues Expenses Net Income A C F Required A
