E4-9 (Algo) Determining Accounting Equation Effects of Typical Adjusting Journal Entries [LO 4-2, LO 4-6] Jaworski's Ski Store is completing the accounting process for its first year ended December 31, 2021. The transactions during 2021 have been journalized and posted. The following data are available to determine adjusting journal entries: a. The unadjusted balance in Supplies was $970 at December 31, 2021. The unadjusted balance in Supplies Expense was $0 at December 31, 2021. A year-end count showed $160 of supplies on hand. b. Wages earned by employees during December 2021, unpaid and unrecorded at December 31,2021 , amounted to $4,300. The last paychecks were issued December 28; the next payments will be made on January 6,2022 . The unadjusted balance in Salaries and Wages Expense was $46,000 at December 31, 2021. c. A portion of the store's basement is now being rented for $1,700 per month to K. Frey. On November 1, 2021, the store collected six months' rent in advance from Frey in the amount of $10,200. It was credited in full to Deferred Revenue when collected. The unadjusted balance in Rent Revenue was $0 at December 31, 2021. d. The store purchased delivery equipment at the beginning of the year. The estimated depreciation for 2021 is $2,600, although none has been recorded yet. e. On December 31, 2021, the unadjusted balance in Prepaid Insurance was $3,240. This was the amount paid in the middle of the year for a two-year insurance policy with coverage beginning on July 1, 2021. The unadjusted balance in Insurance Expense was $660, which was the cost of insurance from January 1 to June 30, 2021. f. Jaworski's store did some ski repair work for Frey. At the end of December 31, 2021, Frey had not paid for work completed amounting to $810. This amount has not yet been recorded as Service Revenue. Collection is expected during January 2022. amounting to $810. This amount has not yet been recorded as Service Revenue. Collection is expected during January 2022. Required: For each of the transactions, indicate the amount and direction of effects of the adjusting journal entry on the elements of the accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) M4-26 (Static) Progression of Prepaid Expenses over Several Periods [LO 4-2, LO 4-4, LO 4-5] Midwest Manufacturing purchased a three-year insurance policy for $30,000 on January 2, 2021. Required: 1. Prepare any journal entries, adjusting journal entries, and closing journal entries required on January 2, 2021, December 31, 2021, and December 31, 2022. 2. Prepare the T-accounts for Prepaid Insurance, Insurance Expense, Cash, and Retained Earnings. Assume the January 2, 2021, balances in these accounts were $0,$0,$90,000, and $80,000, respectively. 3-a. Given only the entries for insurance, indicate what amounts would be reported for each of these accounts on the balance sheet prepared on December 31, 2021, and December 31, 2022. 3-b. Given only the entries for insurance, indicate what amounts would be reported for each of these accounts on the income statement prepared on December 31, 2021, and December 31, 2022. Complete this question by entering your answers in the tabs below. Prepare any journal entries, adjusting journal entries, and closing journal entries required on January 2, 2021, December 31, 2021, and December 31, 2022. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet 5 Record the payment of $30,000 for the purchase of a three-year insurance policy. Note: Enter debits before credits. Prepare the T-accounts for Prepaid Insurance, Insurance Expense, Cash, and Retained Earnings. Assume the January 2, 2021, balances in these accounts were $0,$0,$90,000, and $80,000, respectively. (Post the transactions in the order of the journal entries answered in requirement 1. ) 3-b. Given only the entries for insurance, indicate what amounts would be reported for each of these accounts on the income statement prepared on December 31, 2021, and December 31, 2022. Complete this question by entering your answers in the tabs below. Given only the entries for insurance, indicate what amounts would be reported for each of these accounts on the balance sheet prepared on December 31, 2021, and December 31, 2022. balances in these accounts were $0,$0,$90,000, and $80,000, respectively. -a. Given only the entries for insurance, indicate what amounts would be reported for each of these accounts on the balance sheet prepared on December 31, 2021, and December 31, 2022. -b. Given only the entries for insurance, indicate what amounts would be reported for each of these accounts on the income statement prepared on December 31, 2021, and December 31, 2022. Complete this question by entering your answers in the tabs below. Given only the entries for insurance, indicate what amounts would be reported for each of these accounts on the income statement prepared on December 31, 2021, and December 31, 2022