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. Dec. 31 (Record accrued utilities) 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 (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) 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. Dec. 31 (Record accrued utilities) 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 (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