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 lability 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> Lerignment for Gradi CHART OF ACCOUNTS Faraday Electronic 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 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 France Check My Work 3 more Check My Work uses remaining Previous Next > 139 Accumulated Depreciation 140 Prepaid Advertising LIABILITIES 211 Accounts Payable 212 Notes Payable 213 Income Taxes Payable 214 Wages Payable 215 Utities Payable 216 Insurance Payable 217 Rent Payable 221 Interest Payable 222 Uneamed Service Revenue 223 Unearned Rent Revenue 231 Bonds Payable EQUITY 311 Common Stock 321 Retained Earnings 331 Dividends 350 Income Summary 532 Depreciation 541 Income Tases Expense Prepare adjunting entries at December 31 for these four activities beral Journal Instructions DATE GENERAL JOURNAL ACCOUNT TITLE Adjusting Entries BALA POST REF DEBIT CREDIT ASSETS L Check My Work 3 more Check My Work uses remaining Previous Next Email Instructor Save and Exit Submit Assignment for Grading Final Question 2. Conceptual Connection: What would be the effect on expenses if the adjusting entries were not made? a. If this entry were not made, expenses would and assets would Additionally net income and stockholders' equity would b. If this entry were not made, expenses would net income and stockholders' equity would and liabilities would Additionally c. If this entry were not made, expenses would net income and stockholders' equity would and liabilities would Additionally d. If this entry were not made, expenses would and assets would Additionally net income and stockholders' equity would Additional Instruction Cumulative effect on expenses: Check My Work 3 more Check My Work uses remaining Previous Next > Email Instructor Save and Exit Submit Assignment for Grading