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Credit Requirement 1 Transactions General Journal a. Insurance Expense Prepaid Insurance (To record insurance expired) Debit $120 $120 b. $600 Supply Expense Supplies (To record

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Credit Requirement 1 Transactions General Journal a. Insurance Expense Prepaid Insurance (To record insurance expired) Debit $120 $120 b. $600 Supply Expense Supplies (To record cost of supplies consumed) $600 C. $240 Depreciation Expense - Equipment Accumulated Depreciation - Equipment (To record depreciation on equipment) $240 d. $320 Depreciation Expense - Furniture Accumulated Depreciation - Furniture (To record depreciation on furniture) $320 e. $360 Accounts Receivable Service Revenue (To record revenue earned but not recorded) $360 f. $140 Unearned Revenue Service Revenue (To record revenue earned during the month) $140 g. Salaries Expense ($750 / 5 days) * 2 days Salaries Payable (To record Salaries due but not paid $300 $300 Com After completion of Problem 1, above, change the account balances to their "after adjustment" new totals and produce, in the proper format, an Adjusted Trial Balance dated December 31, 2020. This should be an entirely new document, not merely a couple of columns placed beside the unadjusted trial balance. A three-line heading is required. (Hint: Do not use the initial entries or the new year entries, only Problem 1 adjustments are to be used. An adjusted trial balance is always a combination of the unadjusted trial balance and the adjusting entries ONLY. And remember, it's not just the new accounts that change; it's every account that got adjusted changing which in turn produces the new Adjusted Trial Balance. Tammy's Tattoos , a service-providing corporation, had the following trial balance just before you, Tammy's accountant, adjusts the accounts at the end of Tammy's first year, December 31, 2020: Tammy's Tattoos Unadjusted Trial Balance December 31, 2020 Debit Credit Cash............. $ 3,100 250 840 5,600 Accounts Receivable....... Prepaid Insurance.... Supplies............ Equipment......... Accumulated Depreciation-Equipment... Furniture.......... Accumulated Depreciation-Furniture...... Salaries Payable.......... Unearned Revenue........ Capital Stock...... 7.700 1,600 12,700 Dividends......... 400 7,480 3,200 690 Service Revenue..... Salaries Expense..... Utilities Expense.... Depreciation Expense-Equipment... Depreciation Expense-Furniture..... Supply Expense.... Insurance Expense..... Totals......... $ 21,780 $ 21,780

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