Problem 5-7A The unadjusted trial balance of Flint Enterprises for the year ending December 31, 2021, follows: FLINT ENTERPRISES Trial Balance December 31, 2021 Cash Accounts receivable Debit Credit $15,000 19,200 Merchandise inventory 37,050 Prepaid insurance 3,000 Supplies 2,950 Equipment 150,000 Accumulated depreciation- $35,000 equipment Furniture 45,000 Accumulated depreciation- 18,000 furniture Accounts payable 33,200 Unearned revenue 4,000 Mortgage payable 125,000 S. Kim, capital 46,200 S. Kim, drawings 48,000 Sales 265,000 Sales returns and allowances 2,500 Sales discounts 3,275 Cost of goods sold 153,000 Interest expense 6,875 Salaries expense 35,450 Utilities expense 5,100 $526,400 $526,400 Additional information: 1. There is $830 of supplies on hand on December 31, 2021. 2. The one-year insurance policy was purchased on March 1, 2021. 3. Depreciation expense for the year is $10,500 for the equipment and $4,500 for the furniture. 4. Accrued interest expense at December 31, 2021, is $700. 5. Unearned revenue of $975 is still unearned at December 31, 2021. On the sales that were earned, cost of goods sold was $2,050. 6. A physical count of merchandise inventory indicates $31,850 on hand on December 31, 2021. 7. Global uses the perpetual inventory system and the earnings approach. Your answer is correct. Prepare the adjusting journal entries assuming they are prepared annually. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Date Account Titles and Explanation Dec. 1. 31 Supplies Expense Supplies (To record supplies used.) Dec. 2. 31 Insurance Expense Prepaid Insurance Debit Credit 2120 2500 2120 2500 (To record insurance expired.) Dec. 3. 31 Depreciation Expense 15000 Accumulated Depreciation-Furniture 4500 Accumulated Depreciation-Equipment 10500 (To record depreciation.) Dec