equiredi on the fi CONCEPTUAL the adjusting entries and identify their effects for your a CONNECTION Analy tau emects Use the follywing format ace runte w Ignore any income Earnings OBJECTIV Problem 3.676 Adjusting Entries and Financial statements e ist adjusted trial balance for Mitchell Pharmacy appears below Mitchell Pharmacy Unadjusted Trial Balance Accounts Receivable 583 400 1,200 Prepaid Insurance 230,000 Accumulated Depreciation (Building) 31200 Other Assets 47.8 Accounts Payable Notes Payable (due 2015) 600,000 Common Stock 41.200 Retained Earnings, 12su2012 950,420 Service Revenue 871.420 Wages Expense Interest Expense $1.833.430 SI 833,430 The following information is available at year end for adjustments: n of insurance policies indicates that s2,180 of the prepaid insurance is coverage for 2014. h. Depreciation expense for 2013 is s the note payable c. Four months' interest at 10% is owed but unrecorded and unpaid on e. ages of $4.950 are owed but unpaid and at December 31 31. Income taxes of sil 370 are owed but unrecorded and unpaid a December Required: 2 Prepare the adjusting entries. using Prepare an income statement, a retained earnings statement, and a balance sheet adjusted account balances, 3. CONCEPTUAL CONNECTION Why would you not want to prepare financial statements until after the adjusting entries are made Problem 3.68B nferring Adjusting Entries from Account Balance Changes The following schedule shows all the accounts of Eagle tmpons hat received year end adjusting entries Adjusted Unadjusted Account Balance Account Balance Account Prepaid Insurance 103.001 Accumulated Depreciation Interest Payable Wages Payable