LO 2 E7.11 For each of the following situations, prepare the adjusting entry for the month ended May 31 and indicate the effect each adjustment would have on net income: A. The May telephone bill for Scheele Company arrived in the accounting department on June 8. The invoice totaled $210. B. Bailey, Inc., had an arrangement with a local newspaper to run a full-page advertisement every Sunday. The cost of each ad was $350. The newspaper sends Bailey a bill on the 15th of the next month. There were four Sundays in the month of May. C. Santoni borrowed $50,000 on October 1. The terms of the note called for repayment of principal and interest of 7 percent one year from the date of the note. Santoni prepares monthly financial statements.