Brief Exercise 3-31 Adjusting Entries-Accruals Nichols Company had the following items that required adjustment at December 31, 2019. Required: 1. Prepare the adjusting entries needed at December 31. a. Electricity used during December was estimated to be $320. This amount will be paid in January. 320 Dec. 31 Utilities Expense - Utilities Payable (Record accrued utilities) 320 b. Owed wages to employees of $3,250 that were earned in December but unrecorded and unpaid as of the end of the year. Dec. 31 Wages Expense Wages Payable (Record accrued wages) C. Services of $4,900 were performed in December but unbilled and unpaid as of year end. Dec. 31 (Record revenue earned but not yet received) 2. Conceptual Connection: What is the effect on the financial statements if these adjusting entries were not made? Assets will be by $ by $ Liabilities will be