Home works - Chapter 3 Question-1 The ledger of Craig Ferguson Company on December 31, 2014 includes the following accounts before adjusting entries (*Adjusting period one year) Accounts credit Debt Prepared Insurance 1500 Salary Expense 2500 Prepared advertising Expense 2400 Equipment 20000 Utilities Expense 250 Services Revenue 16000 10000 500 Unearned Services Revenue Interest Revenue The information below has been gathered at December 31, 2014. 1- Insurance expires at the rate of $150 per month. 2- Craig Ferguson Company pays its employees total Annual salaries equal $2400. 3- Craig Ferguson Company paid advertising on September 1, 2014 coverage 12 months. 4- Total Utilities expenses Bill for the year 2014 equal $300. 5- Services were performed for two-fifths of the unearned service revenue. 7- Craig Ferguson interest revenue for the year 2014 was $400. 8- Depreciation on the equipment is $6000 a year, or $500 per month. Instructions: Journalize Adjusting entries on December 31, 2014. Show the effect of adjusting entries on income statement and balance sheet.