Problem 4-234 [LO 4-2, 4-4] All of the transactions of Harding Trading Co. for the year have been journalized and posted. The following information has been gathered for the adjustment process as of December 31, 2018: A. The Supplies account shows a balance of $1,090. A count of supplies revealed $420 on hand. B. The $1,560 premium relating to a one-year insurance policy was paid on December 1, 2018 C. The company's equipment, which was purchased last year depreciates at a rate of $1.200 per year. D. On September 30, 2018, a customer paid $10,600 in advance for services, as of December 31, 2018, services in the amount of $3,180 had been performed for this customer. E. Employees are paid $2,400 on Fridays for the 5-day workweek, which ends on that Friday. However, December 31, 2018 falls on a Thursday. F. The company has completed $580 of work for customers: the customers have not yet been billed and the related revenue has not been recorded Required: a. Prepare the required adjusting entries required at December 31, 2018 b. For each of the adjusting items, Indicate the amount and the direction of effects of the adjusting journal entry on the elements of the balance sheet and income statement. Complete the following table by entering the amount and the direction + for increase. - for decrease) or leave blank for no effect. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the required adjusting entries required at December 31, 2018. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) 1 Record adjusting entry given that the supplies account shows a balance of $1,090. A count of supplies revealed $420 on hand at December 31, 2018 2 Record adjusting entry given that a one-year insurance policy was purchased for $1,560 on December 1, 2018. It was recorded as Prepaid Insurance at that time. 3 Record adjusting entry given that office equipment depreciates at a rate of $1,200 per year. The equipment has been owned all year. They Record adjusting entry given that a client paid $10,600 in advance for services to be rendered later, which was recorded as unearned revenue. Of this amount, $3,180 was earned as of December 31, 2018. 4 Note : = journal entry has been entered Record entry Clear entry 5 Record adjusting entry given that employees earn $2,400 for a 5-day work week. December 31, 2018 falls on a Thursday. 6 Record adjusting entry given that Starfish has completed $580 of work for which it has neither received cash nor billed the client. Note : journal entry has been entered Record entry Clear entry Required A Required B For each of the adjusting items, indicate the amount and the direction of effects of the adjusting journal entry on the elements of the balance sheet and income statement. Complete the following table by entering the amount and the direction (+ for increase, for decrease) or leave blank for no effect. Income Statement Transaction Balance Sheet Total Liabilities Total Assets Stockholders Equity Revenues Expenses Net Income A B C D E F