Below is the trial balance of YilMaz Inc. at December 31, 2019

Yilmaz Inc.

Trial Balance

December 31, 2019

Account	Debit	Credit
Cash	107, 200
Accounts Receivable	40, 000
Prepaid Insurance	4,800.00
Supplies	8,000.00
Equipment	96,000.00
Accumulated Depreciation- Equipment		8,000.00
Notes payable		8,800.00
Unearned revenue		6,000.00
Share Capital- Ordinary		147,200.00
Dividends	4,000.00
Retained Earnings		50,000.00
Service Revenue		80,000.00
Salaries expense	20,000.00
Rent expense	12,000.00
Advertising expense	8,000.00
Total	300,000.00	300,000.00

Other Data
1. Supplies on hand at December 31 are 2,500.
2. A utility bill for 1,000 has not been recorded and will not be paid until next month. (The appropriate liability account here is accounts payable)
3. The insurance policy was purchased on September 1, 2021 and is for a year.
4. 4,500 of unearned service revenue is recognized for services performed at the end of December.
5. The note payable was issued on October 1. It is a 9%, 6-month note. (The appropriate liability account here is interest payable)
6. The equipment was purchased before 2021. It has a 4-year period with no residual value. It is being depreciated at 24,000 per year.
7. Invoices representing 5,000 of services performed during the month have not been recorded as of December 31.

1) Prepare the adjusting entries for the year ended December 31, 2021.
2) If each of the above adjustments was not made, show the effect on net income, shareholders equity, assets and liabilities accordingly, by forming a table as

Adjustment Number	Type of Adjustment	Net Income	Equity	Assets	Liabilities
1
2
3
4
5
6
7

Use the terms Overstated and Understated. Use N/A for any item that wont be affected by the adjustment.