Expense Adjustments Instructions Chart of Accounts Instructions General Journal Final Question Faraday Electronic Service repairs stereos and DVD players. During 2019, Faraday engaged in the following activities: a. On September 1, Faraday paid Wausau Insurance $4,860 for its liability insurance for the next 12 months. The full amount of the prepayment was debited to prepaid insurance. b. At December 31, Faraday estimates that $1.520 of utility costs are unrecorded and unpaid. c. Faraday rents its testing equipment from JVC. Equipment rent in the amount of $1,440 is unpaid and unrecorded at December 31. d. In late October, Faraday agreed to become the sponsor for the sports segment of the evening news program on a local television station. The station billed Faraday $4,350 for 3 months' sponsorship-November 2019, December 2019, and January 2020-in advance. When these payments were made, Faraday debited prepaid advertising. At December 31, 2 months' advertising has been used and 1 month remains unused. Required: 1. Prepare adjusting entries at December 31 for these four activities. 2. Conceptual Connection: What would be the effect on expenses if the adjusting entries were not made? Chart of Accounts Check My Work 3 more Check My Work uses remaining Previous Next> signment for Gradi ASSETS US Saphen 125 P CHART OF ACCOUNTS EXPENSES Check My Work Wy Previous het Submit Assgroase for Grading 9 4 y L 317 DO EQUITY 31 Co Check My Work Sub Agente Grading D3 9 Check My Work My 4 GENERAL JOURNA Sound fo SALA On My Work W 4 4 1 11 919 S D3 914