CHAPTER 3 Adjusting Accounts for Financial Statements a. It was determined that $12,000 of the unearned consulting revenue had not yet been earned b. It was discovered that $14,000 of the balance in the Consulting Revenue account was for services to be performed in November c. The balance in the Prepaid Rent account represents three months of rent beginning September 1, 2020. d. Accrued wages at October 31 totalled 86,800. e. The office furniture was purchased on March 1, 2019, and has an estimated useful life of two years. After two years of use, it is expected that the furniture will be worthless. f. Accrued consulting revenue at year-end totalled $4,200. Interest of $85 had accrued on the note receivable for the month of October h. The balance in the Prepaid Insurance account represents the remaining balance of a two-year policy purchased on April 1. 2019. i. A count of the supplies on October 31 revealed a balance remaining of $620. Rainmaker Environmental Consultants Unadjusted Trial Balance October 31, 2020 Acct. No. Account Debit Credit 101 Cash $26.000 106 Accounts receivable 61,000 109 Interest receivable 111 Notes receivable 50,000 126 Supplies 5.300 128 Prepaid insurance 3,400 131 Prepaid rent 27,000 161 Office furniture 84,000 162 Accumulated depreciation office furniture....... $ 28,000 201 Accounts payable 18,000 210 Wages payable 233 Unearned consulting revenue 26.000 301 Jeff Moore, capital 223.000 302 Jeff Moore, withdrawals 28.000 401 Consulting revenue. 232,020 409 Interest income 480 601 Depreciation expense, office furniture 622 Wages expense 192.000 Insurance expense -0 640 Rent expense...... 44,000 650 Supplies expense 6,800 Totals. $527.500 $527.500 637 Required Prepare the annual adjusting journal entries for October 31, 2020, based on the above. Assume Rainmaker Environmental uses the straight-line method to depreciate its assets. 11.101 Dating adiusted trial balance, and preparing financial statements L06,7 Dell