Brief Exercise 3-32 Adjusting Entries-Deferrals Tyndal Company had the following items that required adjustment at December 31, 2019, Required: 1. Prepare the adjusting entries needed at December 31. a. Purchased equipment for $40,000 on January 1, 2019. Tyndal estimates annual depreciation expense to be $3,100. 3100 Dec. 31 Depreciation Expense Accumulated Depreciation (Record depreciation on equipment) 3,100 b. Paid $2,400 for a 2-year insurance policy on July 1, 2019. The amount was debited to Prepaid Insurance when paid. Dec. 31 (Record use of prepaid insurance) C. Collected $1,200 rent for the period December 1, 2019 to March 30, 2020. The amount was credited to Unearned Service Revenue when received. Dec. 31 (Record earned revenue) 2. Conceptual Connection: What is the effect on the financial statements if these adjusting entries were not made? Assets will be by $ Liabilities will be - by $