Question 6 of 6 ... /20 ili Prepare an income statement for the year ended December 31. (Enter loss using either a negative sign preceding the number eg. -45 or parentheses e.g. (45).) SHEFFIELD ADVERTISING Income Statement $ $ Journalize the annual adjusting entries that were made. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry"for the account titles and enter for the amounts.) Debit Credit No. Date Account Titles and Explanation Dec 31 Accounts Receivable 1. 3.008 Service Revenue 3.008 (To record accrued service revenue) 2. Dec. 31 Supplies Expense 3.122 Supplies 3.122 (To record supplies used) 3. Dec. 31 Insurance Expense 1.498 Prepaid Insurance 1.498 (To expired insurance) 4. Dec 31 Depreciation Expense 5.170 Accumulated Depreciation 5.170 (To record depreciation on equiment) Dec c LON 5. Dec 31 Interest Expense 560 Interest Payable 560 (To record interest accrued on the note) 6. Dec. 31 Advertising Expense 1.999 Service Revenue 1,999 (To record service revenue earned) 7. Dec 31 Salaries and Wages Expense 745 Salaries and Wages Payable 745 (To record accrued wages) Sheffield Advertising was founded by Murali Vedula in January 2015. The following are both the adjusted and unadjusted trial balances as of December 31, 2020. SHEFFIELD ADVERTISING TRIAL BALANCE DECEMBER 31, 2020 Unadjusted Adjusted Dr. Cr. Dr. Cr. Cash $16,480 $16,480 Accounts Receivable 19.380 22.388 9,530 6,408 3.780 2.282 64,700 64,700 $26,970 $32,140 8,000 8,000 Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Interest Payable Unearned Service Revenue Salaries and Wages Payable Common Stock 2,170 2,170 0 560 4,510 2.511 0 745 20,480 20.480 29.625 29,625 19,300 19,300 56,635 61,642 9,740 10,485 Retained Earnings Dividends Service Revenue Salaries and Wages Expense Insurance Expense Interest Expense Depreciation Expense Supplies Expense Rent Expense 1.498 560 5,170 3,122 5,480 5,480 $148,390 $148,390 $157,873 $157,873