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All of the transactions of Starfish Tattoo Parlor Inc. for the year have been jounalized and posted. The following information has been gathered for the

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All of the transactions of Starfish Tattoo Parlor Inc. for the year have been jounalized and posted. The following information has been gathered for the adjustment process as of December 31, 2016: A) The Supplies account shows a balance of $1,050. A count of supplies revealed $400 on hand B) The $1.140 premium relating to a one-year insurance policy was paid on December 1, 2016. C) The company's equipment, which was purchased last year, depreciates at a rate of $800 per year D) On September 30, 2016, a customer paid $10,400 in advance for services. Of this amount, 30% was earned as of 12/31/16 E) Employees are paid $1,900 on Fridays for the 5-day work week, which ends on that Friday. However December 31, 2016 falls on a Thursday. F) The company has completed $560 of work for customers; the customers have not yet been billed and the related revenue has not been recorded. Required: a. Prepare the required adjusting entries required at December 31, 2010. (If no entry is required for a transactionievent, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 6 Record adjusting entry given that the supplies account shows a balance of $1,050. A count of supplies revealed $400 on hand at 12/31/16. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry Debit Credif General Journal Iransaction Record entry Clear entry View general journal 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. Using the following format, indicate + for increase, - for decrease, and leave blank for no effect Balance Sheet Income Statement Transaction Total Assets Liabilities Total Stockholders Equity Revenues ExpensesNet Income

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