Analysis of Financial Events 1. During 2003, the Firebright Company recorded the payments of all insurance premiums as expenses. At 12/31/2003, Firebrights unadjusted trial balance shows a balance of $4,200 in Insurance Expense. A 12/31/03 review of insurance policies reveals that $1,250 of insurance is unexpired. The amount reported on Firebrights 2002 balance sheet as Prepaid Insurance was $500. Provide the adjusting journal entry that Firebright would make in order that the 2003 financial statement are correctly stated. Account name Debit Credit 2. During 2003, Briggs Company paid employees $125,000 for salaries and debited salaries payable for all of the payments. The balance in salaries payable on the 2002 Balance Sheet was reported at $24,000. At 12/31/03, Briggs found that the amount still owed to employees for salaries earned is $20,000. Provide the journal entry that Briggs would make in order that 2003 financial statements are correctly stated. Account name Debit Credit Q3:Analysis of Accounting Errors On April 1, 2019, Comet Magazine received $2,400 in advance for a twoyear subscription starting that day from a customer and credited the entire amount to unearned revenue. However, the company failed to make adjusting journal entries afterwards in either 2019 or 2020. Indicate the effect of the error on the 2019 and 2020 financial statements. Use O for overstated, U for understated, and NE for no effect. If there is an effect, state the amount. Ignore taxes. 2. Accounting Cycle 19 2019 Net Income Assets Liabilities Owners Equity 2020 Net Income Assets Liabilities Owners Equity