Mitakis Inc., a small service repair company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as at the end of the companys fiscal year, December 31, 2015:

Account Titles

Debit

Credit

Cash

$

31,300

Trade receivables

13,625

Supplies inventory

2,800

Prepaid insurance

1,875

Equipment (five-year life, no residual value)

54,000

Accumulated depreciation, equipment

$

24,000

Other assets

8,100

Trade payables

7,000

Note payable (three years; 10% each December 31)

17,000

Contributed capital (7,000 shares)

18,800

Retained earnings

11,800

Service revenue

63,000

Other expenses, excluding income tax

29,900

Totals

$

141,600

$

141,600

Data not yet recorded at December 31, 2015, include the following:
a.	Depreciation expense for 2015, $6,000.
b.	Insurance expired during 2015, $750.
c.	Wages earned by employees not yet paid on December 31, 2015, $2,600.
d.	Supplies inventory on December 31, 2015, reflecting $900 remaining on hand.
e.	Income tax expense, $4,450.

Show the effects of the adjusting entries on net earnings and cash.(If there is no cash flow effect, select "None". Enter any decreases to account balances with a minus sign.)

Transaction Effect on net earnings Effect on Cash

A)

B)

C)

D)

E)