Diago Design Agency was founded in January 2017. Presented below is the trial balance as of December 31, 2019 Diago Design Agency Trial Balance December 31, 2019 Credit Debit $11,000 21,500 $ 800 14,500 5.000 2.500 60,000 Cash Accounts Receivable Allowance for Doubtful Accounts Notes Receivable Art Supplies Prepaid Rent Printing Equipment Accumulated Depreciation - Printing Equipment Notes Payable Accounts Payable Unearned Advertising Revenue Share Capital - Ordinary Retained Earnings Dividends Advertising Revenue Salaries Expense Utilities Expense Insurance Expense Miscellaneous Expense Totals 24,000 3,800 5,500 5,600 14,000 3,500 1,200 79,550 11,300 4,600 3,750 1.400 $136,750 $136,750 Instructions 1- Prepare the adjusting entries for these accounts: - Art supplies (Supplies expense) - Allowance for doubtful accounts (Bad debt expense) - Notes receivable (Interest revenue) - Accumulated Depreciation - Printing Equipment - Notes payable (Interest Expense) - Salaries expense - Rent Expense - Unearned Advertising Revenue You need to set your own assumptions in order to adjust the accounts. Those assumptions should be in consistency with your trial balance. Example The trial balance is showing the following balance for Art Supplies": Art Supplies 5,000 Your assumption could be formulated as follows: 1- Art Supplies An inventory count at the end of the year reveals that $1,000 of supplies are still on hand. So the cost of supplies used = 5,000 1,000=4.000 Adjusting entry for supplies: Dr. Supplies Expense 4,000 Cr. Art Supplies 4,000 2- Post the adjusting entries to the ledger 3- Prepare an adjusted trial balance 4- Prepare the worksheet 5- Prepare financial statements 6- Journalize and post the closing entries 7- Prepare a post-closing trial balance