Practice Problem: Adjusting Entries Muldoon and Fuhr Company are in the process of preparing their financial statements for the YEAR ended December 31, 2009. The Company has provided you with the following selected account belances from its UNADJUSTED trial balance: DEBIT $20,000 18,000 195,000 CREDIT Cash Accounts Receivable Accumulated Depreciation Prepaid Insurance Supplies Expense Service Revenue Accounts Payable $18,000 75,000 5,000 110,000 20,000 3,000 ADDITIONAL DATA (a) At the end of the year it was determined that $1,000 of supplies were still on hand. b) The employees have earned money for work done during December, but for which they will not be paid until January of 2010. The amount was $7,000. (c) The Company paid their fire insurance on January 1, 2009 for three years in advance. (d) The machinery is expected to have a useful life of 20 years with an estimated scrap value (e) Customers paid the Company $72,000 in advance for services to be performed equally of $15,000. over 4 months-October 2009, November 2009, December 2009, January 2010This amount is included in the Service Revenue account on the unadjusted trial balance. REQUIRED: ON THE NEXT PAGE, PREPARE THE PROPER ADJUSTING ENTRIES REQUIRED AT 12-31-09. SHOW ALL COMPUTATIONS CLEARLY!!! USE THE FORMAT PROVIDED. The Company adjusts it's books yearly!!! BONUS: Show what the adjusting entry for item () would be if the Company initialy recorded the $75,000 in an Insurance expense account. DR: 12-31: CR: 41 ADJUSTING ENTRY COMPUTATION