Instructions Faraday Electronic Service repairs stereos and DVD players. During 2019, Faraday engaged in the following activities: the prepayment a. On September 1, Faraday paid Wausau Insurance $4,860 for its liability insurance for the next 12 months. The full amount 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' sponsorshipNovember 2019, December 2019, and January 2020in 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? General Journal 1. Prepare adjusting entries at December 31 for these four activities. General Journal Instructions PAGE 1 IMPACT ON FINANCIAL STATEMENTS GENERAL JOURNAL BALANCE SHEET INCOME STATEMENT DATE ACCOUNT TITLE POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY REVENUE EXPENSES NET INCOME 1 Adjusting Entries 7 8 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 and liabilities would Additionally, net income and stockholders' equity would c. If this entry were not made, expenses would and liabilities would Additionally, net income and stockholders' equity would 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: by S