EXERCISE 3-CONCEPT OF ACCRUAL Lambada Company is a small editorial services company owned and operated by Puan Afiqah. On December 31, 2008, the end of the current year, Lambada Company's account- ing clerk prepared the following unadjusted trial balance. The data needed to determine year-end adjustments are as follows: a. Unexpired insurance on December 31, RM2,700. b. Supplies on hand on December 31, RM480. c. Depreciation of building for the year, RM1,600. d. Depreciation of equipment for the year, RM4,400. e. Rent unearned on December 31, RM3,250. f. Accrued salaries and wages on December 31, RM2,800. g. Fees earned but unbilled on December 31, RM6,200. Instructions 1. Journalize the adjusting entries. Add additional accounts as needed. 2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance. Lambada Company Unadjusted Trial Balance December 31, 2008 Debit Credit Balances Balances Cash... 5,550 Accounts Receivable 28,350 Prepaid Insurance 7,200 Supplies .... 1,980 Land.. 112,500 Building 212,250 Accumulated Depreciation--Building 137,550 Equipment 135,300 Accumulated Depreciation-Equipment 97,950 Accounts Payable .... 12,150 Unearned Rent 6,750 Afiqah, Capital 201,000 Afiqah, Drawing 15,000 Fees Earned... 294,600 Salaries and Wages Expense 143,370 Utilities Expense 42,375 Advertising Expense 22,800 Repairs Expense 17.250 Miscellaneous Expense 6,075 750,000 750,000