Prepare adjusting entries for the following situations or explain why an adjusting entry is not needed. (ASSUME ALL SITUATIONS INVOLVE A CALENDAR YEAR) 1. On December 31, the balance in the Office Supplies account is $2,200. An inventory of office supplies shows that there are only $1,400 of office supplies left on hand. 2. On December 16, a company places an advertisement int local newspaper. The advertisement that costs $500 will from December 20 through the 24th. The newspaper will bill the company sometime in January 3. On October 204, the company signed a contract to do service work for a customer. The contract was for $15,000 and covered the period November 1 of the current year until October 31 of the following year. 4. A body and fender shop repairs a vehicle that was involve in a crash. The repairs which total $4,200 were done between December 11 and December 22. Payment will be made once the insurance adjustor approves the claim; this will happen between the first and second week of January PART III Using the adjusted trial balance provided (the following page) prepare the closing entries for Otto von Otto Autos, Inc. Otto von Otto's Autos, Inc Adjusted Trial Balance December 31, 2021 Balance Account Title Debit Credit Cash $583,500 Accounts Receivable 245,000 Office Supplies 3,300 Prepaid Insurance 18,750 Land 50,000 Building 875,000 Building Accumulated Depreciation Building 20,000 Accounts Payable 37,200 Salaries Payable 12,750 Notes Payable (long-term) 127,234 Common Stock 50,000 Retained Earnings 275,366 Dividends 50,000 New Car Sales 3,000,000 Used Car Sales 800,000 Parts Sales 134,800 Service Revenue 75,000 Cost of Goods Sold 2,400,000 Salaries 238,000 Depreciation Expense- Building 10,000 5 Insurance 54,000 - Utilities 4,800 3 TOTAL $ 4,532,350 $ 4,532,350 Account Name Debit Credit