Ch 3 Adjustment for Deferrals The ledger of Red Sea Company for Jan 31 shows the following accounts before adjustment Credit Debit $12000 22000 600,000 $200,000 1 Prepaid Rent 2 Supplies 3 Equipment 4 Accumulated Depreciation- Equipment 5 Unearned Service Revenues 18,000 An analysis of the accounts shows the following: 1. The monthly Rent is 1000. 2. Supplies on hand (available in the warehouse) is 19000 3. The equipment depreciates 16,666 a month 4. 30% of the unearned service 1. The monthly Rent is 1000. 2. Supplies on hand (available in the warehouse) is 19000 3. The equipment depreciates 16,666 a month 4. 30% of the unearned service revenues were performed on January Prepare the Adjusting entries for the month of January Dr CR