How does Reliable adjust its revenues and expenses so that its net income is properly measured? Reliable's trial balance follows. 1 2 13 A B 4 5 Cash IDO Accounts Receivable (105) 7 Office Supplies (ID) Prepaid Insurance (1) Reliable Answering Service Trial Balance December 31, 2014 Office Equipment (120) 10 Accumulated Depreciation Office Equipment(125) 11 Accounts Payable (200 12 Unearned Revenue 20 13 T. Ramos, Capital (300) 14 T. Ramos, Withdrawals (305) 15 Answering Service Revenue (HDD) 16 Wages Expense (5.00) 17 Rent Expense (505) 10 19 D 2,100 1,250 180 240 3,400 3. Depreciation for December totaled $100. 4. Accrued wages on December 31 totaled $120. 400 1,500 400 9.530 1. Insurance that expired during December amounted to $40. 2. Office supplies on hand on December 31 totaled $75. E 600 700 460 4,870 2,900 The following information is also available for the company on December 31, 2014: 0.530 5. Revenues earned for services performed in December but not billed by the end of the month totaled $300. 6. Revenues received in advance of services still to be performed totaled $300 at the end of the year. REQUIRED In order to understand how Reliable adjusts its revenues and expenses so that its net income is properly measured, complete the following: 1. Open ledger accounts for the accounts in the trial balance PLUS the following: Wages Payable (210), Office supplies Expense (510), Depreciation Expense - Office Equipment (515) and Insurance Expense (520). 2. Determine the required adjusting entries and record them in the general journal. 3. Post the entries to the general ledger. Open new general ledger accounts as needed. 4. Prepare an adjusted trial balance. 5. Prepare an income statement, a statement of owner's equity, and a balance sheet for the month ended December 31, 2014.