eBook Show Me How Sentry Transport Inc. of Atlanta provides in-town parcel delivery services in addition to a full range of passenger services. Sentry engaged in the following activities during the current year: a. Sentry received $5,000 cash in advance from Rich's Department Store for an estimated 250 deliveries during December 2019 and January and February of 2020. The entire amount was recorded as unearned revenue when received. During December 2019, 110 deliveries were made for Rich's b. Sentry operates several small buses that take commuters from suburban communities to the central downtown area of Atlanta. The commuters purchase, in advance, tickets for 50 oneway rides. Each 50-ride ticket costs $500. At the time of purchase, Sentry credits the cash received to unearned revenue. At year end, Sentry determines that 10,160 one-way rides have been taken. c. Sentry operates several buses that provide transportation for the clients of a social service agency in Atlanta. Sentry bills the agency quarterly at the end of January, April, July, and October for the service performed that quarter. The contract price is $7,500 per quarter. Sentry follows the practice of recognizing revenue from this contract in the period in which the service is performed. d. On December 23, Delta Airlines chartered a bus to transport its marketing group to a meeting at a resort in southern Georgia. The meeting will be held during the last week in January 2020, and Delta agrees to pay for the entire trip on the day the bus departs. At year end, none of these arrangements have been recorded by Sentry. Required: 1. Prepare adjusting entries at December 31 for these four activities. 2. Conceptual Connection: What would be the effect on revenue if the adjusting entries were not made? CHART OF ACCOUNTS Sentry Transport Inc. General Ledger ASSETS 111 Cash 121 Accounts Receivable 122 Notes Receivable 123 Supplies 124 Prepaid Insurance 125 Prepaid Rent 126 Inventory 127 Interest Receivable 130 Investment 131 Land 132 Buildings 133 Equipment 134 Furniture 135 Trucks 139 Accumulated Depreciation REVENUE 411 Sales Revenue 412 Service Revenue 413 Interest Income 414 Rent Revenue EXPENSES 511 Cost of Goods Sold 512 Advertising Expense 513 Supplies Expense 514 Utilities Expense 515 Rent Expense 516 Insurance Expense 521 Wages Expense 531 Interest Expense 532 Depreciation Expense 541 Income Taves Exnense General Journal epare adjusting entries at December 31 for these four activities. If an entry is not required post nothing in the journal ral Journal Instructions DATE GENERAL JOURNAL ACCOUNT TITLE Adjusting Entries BALAN POST REF DEBIT CREDIT ASSETS LIA Previous Next Check My Work 3 more Check My Work uses remaining. Final Question 2. Conceptual Connection: What would be the effect on revenue if the adjusting entries were not made? Additional Instruction a. Without this adjusting entry, revenue would and liabilities would < b. Without this adjusting entry, revenue would and liabilities would c. Without this adjusting entry, revenue would and assets would d. Without this adjusting entry, revenue would and assets would Cumulatively, if these transactions were not made, revenue would by $ Check My Work 3 more Check My Work uses remaining Previous Next