Homework 3 Chapter 3-Adjusting entries: Hashem industries collected $112,000 from customers in 2017. Of the amount collected, $30,000 was from revenue accrued from services performed in 2016. In addition, they recorded $44,000 of revenue in 2017, which will not be collected until 2018. Hashem Industries also paid $72,000 for expenses in 2017. Of the amount paid, $27,000 was for expenses incurred on account in 2016. In addition, they incurred $37,000 of expenses in 2017, which will not be pain until 2018 Complete the following Income statements for 2017 Cash Basis Income Statement Accrual Basis Income Statement For year ending 2017 Revenue -Expenses Net Income On May 31, 2018, the unadjusted trial balance is as follows Account Cash A/R Supplies Prepaid insurance Equipment A/P Unearned service revenue Share Capital-Ordinary Service revenue Salaries and wages expense Rent expense Credit Debit 7.700 4,000 1,500 2,880 12,000 4.700 2,600 16,000 8,780 3,000 1,000 32,080 32,080 In addition to the accounts listed on the trial balance, the chart of accounts also contains the following accounts: Accumulated Depreciation-Equipment, Salaries and wages payable, supplies expense, depreciation expense, insurance expense, and Utilities expense Other data 1 $500 of supplies have been used during the month 2. Utilities expense incurred for the period but not paid on May 31 is $200. 3. The insurance expense is for 2 years 4 $1,000 of the balance in unearned service revenue remains unearned at the end of the month 5. May 31 is a Tuesday, and employees are paid on Fridays. They have two employees, who are paid $500 each for a 5-day work week 6. The equipment has a 5-year life with no residual value. 7. Invoices representing S1,100 of services performed during the month have not been recorded as of May 31. Required 1) Prepare the adjusting entries for the month of May 2) Prepare an adjusted Trial Balance on May 31