E3-26 should be wed only in conjunction with Exercise E3-25. Note: Exercie E3-26 Preparing an adjusted trial balance ing Objective 4 Refer to the data in Exercise E3-25, and prepare an adjusted trial balance. ance 534 660 total E3 27 Identifying the impact ofadjusting entries on the financial statements Austin Acoustics recorded the following transactions during October 2016: 5 a. Received $2,500 cash from customer for three months of service beginnin Ocober 1, 2016, and ending December 31, 2016. The company recorde $2,500 debit to Cash and a $2,500 credit to Unearned Revenue. b. Employees are paid $3,000 on Monday following the five-day workweek. October 31, 2016, is on Friday . The company pays $440 on October 1, 2016 for its six-month auto insurance policy. The company recorded a $440 debit to Prepaid Insurance and a $440 credit to Cash. d. The company purchased office furniture for $8,300 on January 2, 2016. The company recorded a $8,300 debit to Office Furniture and a $8,300 credit to Accounts Payable. Annual depreciation for the furniture is $1,000 e. The company began October with $50 of office supplies on hand. On October 10, the company purchased office supplies on account of $100. The company f. The company received its electric bill on October 30 for $325 but did not pay g. The company paid November's rent of $2,500 on October 30. On October 30, recorded a $100 debit to Office Supplies and a $100 credit to Accounts Payable The company used $120 of office supplies during October. until November 10. the company recorded an $2,500 debit to Rent Expense and an $2,500 credit to Cash. Indicate if an adjusting entry is needed for each item on October 31 for the month of October. Assuming the adjusting entry is not made, indicate which specific category or categories of accounts on the financial statements are misstated and if they are E3-26 should be wed only in conjunction with Exercise E3-25. Note: Exercie E3-26 Preparing an adjusted trial balance ing Objective 4 Refer to the data in Exercise E3-25, and prepare an adjusted trial balance. ance 534 660 total E3 27 Identifying the impact ofadjusting entries on the financial statements Austin Acoustics recorded the following transactions during October 2016: 5 a. Received $2,500 cash from customer for three months of service beginnin Ocober 1, 2016, and ending December 31, 2016. The company recorde $2,500 debit to Cash and a $2,500 credit to Unearned Revenue. b. Employees are paid $3,000 on Monday following the five-day workweek. October 31, 2016, is on Friday . The company pays $440 on October 1, 2016 for its six-month auto insurance policy. The company recorded a $440 debit to Prepaid Insurance and a $440 credit to Cash. d. The company purchased office furniture for $8,300 on January 2, 2016. The company recorded a $8,300 debit to Office Furniture and a $8,300 credit to Accounts Payable. Annual depreciation for the furniture is $1,000 e. The company began October with $50 of office supplies on hand. On October 10, the company purchased office supplies on account of $100. The company f. The company received its electric bill on October 30 for $325 but did not pay g. The company paid November's rent of $2,500 on October 30. On October 30, recorded a $100 debit to Office Supplies and a $100 credit to Accounts Payable The company used $120 of office supplies during October. until November 10. the company recorded an $2,500 debit to Rent Expense and an $2,500 credit to Cash. Indicate if an adjusting entry is needed for each item on October 31 for the month of October. Assuming the adjusting entry is not made, indicate which specific category or categories of accounts on the financial statements are misstated and if they are