PacRim Careers provides training to individuals who pay tuition directly to the business. The business also offers extension training to groups in off-site locations. Additional information available at the December 31, 2020, year-end follows:

1. An analysis of the companys policies shows that $1,150 of insurance coverage has expired.
2. An inventory shows that teaching supplies costing $350 are on hand at the end of the year.
3. The estimated annual depreciation on the equipment is $6,750
4. The estimated annual depreciation on the professional library is $4,050.
5. The school offers off-campus services for specific employers. On November 1, the company agreed to do a special six-month course for a client. The contract calls for a monthly fee of $750, and the client paid the first five months' revenue in advance. When the cash was received, the Unearned Extension Revenue account was credited.
6. On October 15, the school agreed to teach a four-month class for an individual for $1,100 tuition per month payable at the end of the class. The services to date have been provided as agreed, but no payment has been received.
7. The school's two employees are paid weekly. As of the end of the year, three days' wages have accrued at the rate of $130 per day for each employee.
8. The balance in the Prepaid Rent account represents the rent for three months: December, January, and February.

PACRIM CAREERS Trial Balances December 31, 2020
	Unadjusted										Adjusted
	Trial Balance							Adjustments			Trial Balance
Account		Dr.				Cr.		Dr.	Cr.		Dr.	Cr.
Cash	$	17,000
Accounts receivable		0
Teaching supplies		5,500
Prepaid insurance		1,300
Prepaid rent		5,700
Professional library		54,000
Accumulated depreciation, professional library					$	16,200
Equipment		81,000
Accumulated depreciation, equipment						27,000
Accounts payable						2,000
Salaries payable						0
Unearned extension revenue						5,300
Karoo Ashevak, capital						219,000
Karoo Ashevak, withdrawals		87,000
Tuition revenue						172,700
Extension revenue						62,500
Depreciation expense, equipment		0
Depreciation expense, professional library		0
Salaries expense		196,000
Insurance expense		0
Rent expense		34,000
Teaching supplies expense		0
Advertising expense		13,000
Utilities expense		10,200
Totals	$	504,700			$	504,700

Required: 1. Prepare the necessary annual adjusting journal entries at December 31, 2020, based on (a) to (h) above.

Analysis Component: 2. Complete the adjusted trial balance using the information in (a) through (h) above.

4. Is it ethical to ignore adjusting entries?