Exercise 3-20 Sheridan Company has the following balances in selected accounts on December 31, 2020. Service Revenue $40,000 Insurance Expense 4,380 Supplies Expense 2,700 All the accounts have normal balances. Sheridan Company debits prepayments to expense accounts when peld, and credits uneared revenues to reverie accounts when received. The following information below has been gathered at December 31, 2020. 1. Sheridan Company paid 54,380 for 12 months of insurance coverage on June 1, 2020. 2. On December 1, 2020, Sheridan Company collected $40,000 for consulting services to be performed from December 1, 2020, through March 31, 2021. A count of supplies on December 31, 2020, indicates that supplies of $900 are on hand Prepare the adjusting entries needed at December 31, 2020. (Credit account trties are automatically Indented when the amount is entered. Do not indent manually.) Debit Credit No. Date Account Tities and Explanation 1. Dec. 31 2. Dec. 31 3. Dec. 31