Recording Adjusting Entries Prepare the adjusting journal entries required on December 31, 2020, for Walker Corp. using the following information. Assume that no adjusting journal entries were recorded in 2020 prior to year-end. a. Interest expense of $450 for the month of December 2020 will be paid in January 2021. b. Unbilled revenue for services performed in December 2020 is $1,500. The company will prepare and forward invoices for this amount in January 2021 to customers with a 30-day collection term. C. $4,500 cash was received in advance on November 30, 2020, for future services to be performed by Walker Corp. and was recorded as deferred service revenue. The services were performed on December 20, 2020. d. Walker Corp. acquired a two-year insurance policy on January 1, 2020, for $14,400 cash that was recorded initially as prepaid insurance. e. Depreciation on equipment is $18,000 for 2020. General Journal Ref. Account Name Dr. Cr. a. 0 0 b. 0 0 C. 0 0 d. 0 0 e. 0 0 Preparing Financial Statements Brown Inc. prepared the following adjusted trial balance on December 31, 2020, based on its first year of operations. Using this adjusted trial balance, prepare an income statement for the year ended December 31, 2020, and a balance sheet as of December 31, 2020. Adjusted Trial Balance December 31, 2020 Accounts Debit Credit Cash $ 6,600 $ Accounts receivable 3,000 Prepaid insurance 1,200 Other assets 5,200 Equipment, net 20,000 Accounts payable 4,000 Note payable 8,000 Common stock 8,000 Service revenue 40,000 Selling expenses 8,000 General and administrative expenses 15,000 Interest expense 1,000 Totals $60,000 $60,000 Income Statement Balance Sheet Brown Inc. Income Statement For the Year Ended December 31, 2020 Revenues $ 0 0 Expenses 0 0 General administrative expenses Interest expense 0 0 $ 0