At the end of 2016, Richards Company prepared a trial balance, recorded and posted its adjusting entries, and then prepared an adjusted trial balance. Selected accounts and account balances from the trial balance and adjusted trial balance are as follows:

Partial Trial Balance

Partial Adjusted Trial Balance

(Debit)

(Credit)

(Debit)

(Credit)

Depreciation Expense $0 $3,960

Interest Payable $0 $810

Bad Debts Expense 0 410

Utilities Expense 1,480 1,682

Rental Revenue 1,650 2,635

Income Tax Expense 0 2,740

Prepaid Insurance 1,742 1,380

Office Salaries Payable 0 540

Rent Expense 0 800

Accumulated Depreciation 14,820 18,780

Interest Receivable 0 320

Prepaid Rent 1,600 800

Office Salaries Expense 5,600 6,140

Income Taxes Payable 0 2,740

Insurance Expense 300 662

Allowance for Doubtful Accounts 130 540

Interest Expense 0 810

Unearned Rent 600 0

Utilities Payable 0 202

Interest Revenue 620 940

Sales Salaries Expense 7,300 7,850

Office Supplies 1,150 700

Rent Receivable 0 385

Advances to Salespersons 770 220

Office Supplies Expense 0 450

Additional information:

1. Interest Receivable is due March 1, 2017

2. Interest Payable is due May 14, 2018

Required:

1. By comparing the partial trial balance to the partial adjusted trial balance, determine the adjusting entries that the company made on December 31, 2016. Prepare your answers in general journal form.

2. Assuming that the company uses reversing entries, indicate which adjusting entries should be reversed.