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Problem 3 On the basis of (1) the following unadjusted trial balance of Akita International Corporation at December 31, 2019, and (2) the following data

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Problem 3 On the basis of (1) the following unadjusted trial balance of Akita International Corporation at December 31, 2019, and (2) the following data needed for the adjustments, Question 1 Show adjusting entries on December 31, 2019. Question 2 Calculate net income (net loss) for the period ended December 31, 2019. CR (1) The Unadjusted Trial Balance Akita International Corporation Unadjusted Trial Balance December 31, 2019 Balance Account Title DR Cash $ 7,400 Accounts receivable 19,300 Prepaid Rent 2,700 Office Supplies 1,100 Equipment 20,000 Accumulated Depreciation equipment Accounts payable Salaries Payable Unearned Revenue Common Stock Dividends 9,900 Service Revenue Salaries Expense 3,400 Rent Expense Depreciation Expense-Equipment Advertising Expense 1,400 Supplies Expense Total $65.200 $ 4,000 3,100 2,600 40,100 15,400 $65,200 (2) Data needed for the adjustments Adjustment data at December 31 follow: a. On December 15, Suzuki (the president of Akita International Corporation) contracted to perform services for a client receiving $2,600 in advance. Suzuki recorded this receipt of cash as Unearned Revenue. As of December 31, Suzuki has completed $1,200 of the services. 4 b. Suzuki prepaid two months of rent, on December 1. c. Suzuki used $650 of office supplies during the month. d. Depreciation for the equipment is $500. e. Suzuki received a bill for December's online advertising, $600. Suzuki will not pay the bill until January. (Use Accounts Payable). f. Suzuki pays its employees weekly on Monday for the previous week's wages. Its employees earn $5,500 for a five-day workweek. December 31 falls on Wednesday this year. On October 1, Suzuki agreed to provide a four-month air system check (beginning October 1) for a customer for $2,800. Suzuki has completed the system check every month, but payment has not yet been received and no entries have been made

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