Hi there, please answer the full question below and do not write by hands, please type the answers. Thank you!

P3-3 Explain why an adjusting entry is needed and calculate the amount of the adjustment [15-25 min] Descriptions of transactions and how they were recorded follow for October 2016 for Ausley Acoustics Received $1500 cash from a customer for three months of service beginning 1 October 2016 and ending 31 December 2016. The business recorded a $1500 debit to Cash and a $1 500 credit to Unearned service revenue. b Employees are paid $1000 every Wednesday for a five-day working week. 31 October c The business pays $240 on 1 October for their six-month car insurance policy. The d The business purchased office furniture for $6300 on 2 January 2016. The business 2016 is a Monday business recorded a $240 debit to Prepaid insurance and a $240 credit to Cash. recorded a $6300 debit to Office furniture and a $6300 credit to Accounts payable. Annual depreciation for the furniture is $900. The business began October with $50 of supplies on hand. On 10 October, the business purchased supplies on account of $100. The business recorded a $100 debit to Supplies and a $100 credit to Accounts payable. The business used S120 of supplies during October. The business received its electricity bill on 30 October for $125 but didn't pay it until 10 November. On 10 November, it recorded a $125 debit to Electricity and gas expense and a $125 credit to Cash. e g The business paid November's rent of $800 on 30 October. On 30 October, the business recorded an $800 debit to Rent expense and an $800 credit to Cash. Requirement Indicate whether an adjusting entry is needed for each item on 31 October and why an entry is needed (that is, an asset or liability account is over/understated). Indicate which specific account on the balance sheet is misstated. Finally, indicate the correct balance that should appear in the balance sheet account after the adjustment is made. Use the following table guide. Item (a) is completed as an example: Adjustment needed? Yes Over-/ Balance sheet account Correct balance on 31 October $1000 Item Asset/liability understated? Liability Overstated Unearned service revenue