PacRim Careers provides training to individuals who pay tuition directly to the business. The business also offers extension training to groups in offsite locations. Additional information available at the December 31, 2023, yearend follows: EDP-PF!\" I-II An analysis ofthe company's policies shows that $1,190 of insurance coverage has expired. An inventory shows that teaching supplies costing $390 are on hand at the end of the year. The estimated annual depreciation on the equipment is $1250 The estimated annual depreciation on the professional library is $4230. The school offers offcampus services for specic employers. On November 1, the company agreed to do a special sixmonth course for a client. The contract calls for a monthly fee of $?90, and the client paid the rst ve months' revenue in advance. When the cash was received, the Unearned Extension Revenue account was credited. On October 15, the school agreed to teach a fourimonth class for an individual for $1,140 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. . The school's two employees are paid weekly. As of the end of the year, three days' wages have accrued at the rate of $110 per day for each employee. . The balance in the Prepaid Rent account represents the rent for three months: December, January, and February. PACRIM CAREERS Trial Balances December 31, 2023 Unadjusted Adjusted Trial Balance Adjustments Trial Balance Account Dr . Cr. Dr. Cr. Dr . Cr. Cash $ 17, 400 Accounts receivable Teaching supplies 5,900 Prepaid insurance 1, 340 Prepaid rent 6,300 Professional library 56, 400 Accumulated depreciation, professional library $ 16,920 Equipment 87, 000 Accumulated depreciation, equipment 29, 000 Accounts payable 2, 200 Salaries payable Unearned extension revenue 5,700 Karoo Ashevak, capital 223, 000 Karoo Ashevak, withdrawals 89,000 Tuition revenue 182, 020 Extension revenue 66,500 Depreciation expense, equipment Depreciation expense, professional library Salaries expense 200, 000 Insurance expense Rent expense 38,000 Teaching supplies expense 0 Advertising expense 13,400 Utilities expense 10, 600 Totals $525, 340 $525, 340 Required: 1. Prepare the necessary annual adjusting journal entries at December 31, 2023, based on (a) to (h) above.Required: 1. Prepare the necessary annual adjusting journal entries at December 31, 2023, based on (a) to (h) above. View transaction list Journal entry worksheet 2 3 4 5 6 7 8 > Record the cost of insurance expired during the year. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2023 Record entry Clear entry View general journalAnalysis Component: 2. Complete the adjusted trial balance using the information in (a) through (h) above. PACRIM CAREERS Trial Balances December 31, 2023 Unadjusted Adjusted Trial Balance Account Dr. Cr. Cr. Cash $ 17,400 Accounts receivable Teaching supplies 5,900 Prepaid insurance 1,340 Prepaid rent 5.300 Professional library 56,400 Accumulated depreciation, professional library $ 16,920 Equipment 87,000 Accumulated depreciation, equipment 29.000 Accounts payable 2,200 Salaries payable 0 Unearned extension revenue 5.700 Karoo Ashevak, capital 223,000 Karoo Ashevak, withdrawals 89,000 Tuition revenue 182,020 Extension revenue 66,500 Depreciation expense, equipment 0 Depreciation expense, professional library 0 Salaries expense 200,000 Insurance expense Rent expense 38,000 Teaching supplies expense 0 Advertising expense 13,400 Utilities expense 10,600 Totals 525,340 $ 525,3403. lfthe adjustments were not recorded, calculate the over or understatement of income. ::| 4. Is it ethical to ignore adjusting entries? 0 No 0 Yes