Required Information [The following Information applies to the questions displayed below.] Mobo, a wireless phone carrier, completed its first year of operations on October 31. All of the year's entries have been recorded, except for the following: a. At year-end, employees earned wages of $7,200, which will be paid on the next payroll date, November 6. b. At year-end, the company had earned interest revenue of $4,200. It will be collected December 1. 2. Identify whether each required adjustment is a deferral or an accrual. (Check all that apply.) Check All That Apply Both transactions are accruals Both transactions are deferral First transaction accrual First transaction is deferral Second transaction is accrual Second transaction is deferral All of the accounts of the Grass is Greener Company have been adjusted as of December 31, 2022, with the exception of Income taxes Incurred but not yet recorded. Those account balances appear below. All have normal balances. The estimated Income tax rate for the company is 40%. Cash Accounts Receivable Interest Receivable Prepaid Insurance Prepaid Rent $ 353,340 757,950 4,400 6,900 11,400 Supplies 217,900 Equipment 674,500 Accumulated Depreciation 130,500 Accounts Payable 283,700 Deferred Revenue 84,600 Income Tax Payable 0 Salaries and Wages Payable 24,000 Notes Payable (long-term) 358,040 Long-Term Debt 231,600 Common Stock 383,000 Retained Earnings 209,000 Dividends 20,400 Service Revenue 910,000 Interest Revenue 116,100 Supplies Expense 338,200 Repairs and Maintenance Expense 249,500 Depreciation Expense 58,150 Rent Expense 30,700 Income Tax Expense Unknown Required: a. Calculate the Income before income tax. b. Calculate the income tax expense. c. Calculate the net income. Answer is not complete. Income Before Income Tax Income Tax Expense Net Income Jaworski's Ski Store is completing the accounting process for its first year ended December 31, 2021. The transactions during 2021 have been journalized and posted. The following data are available to determine adjusting journal entries: a. The unadjusted balance in Supplies was $1,250 at December 31, 2021. The unadjusted balance in Supplies Expense was $0 at December 31, 2021. A year-end count showed $300 of supplies on hand. b. Wages earned by employees during December 2021, unpaid and unrecorded at December 31, 2021, amounted to $5,700. The last paychecks were issued December 28; the next payments will be made on January 6, 2022. The unadjusted balance in Salaries and Wages Expense was $60,000 at December 31, 2021. c. A portion of the store's basement is now being rented for $3,100 per month to K. Frey. On November 1, 2021, the store collected six months' rent in advance from Frey in the amount of $18,600. It was credited in full to Deferred Revenue when collected. The unadjusted balance in Rent Revenue was $0 at December 31, 2021. d. The store purchased delivery equipment at the beginning of the year. The estimated depreciation for 2021 is $4,000, although none has been recorded yet. e. On December 31, 2021, the unadjusted balance in Prepaid Insurance was $3,800. This was the amount paid in the middle of the year for a two-year insurance policy with coverage beginning on July 1, 2021. The unadjusted balance in Insurance Expense was $800, which was the cost of Insurance from January 1 to June 30, 2021. f. Jaworski's store did some ski repair work for Frey. At the end of December 31, 2021, Frey had not paid for work completed amounting to $950. This amount has not yet been recorded as Service Revenue. Collection is expected during January 2022. Required: For each of the transactions, Indicate the amount and direction of effects of the adjusting journal entry on the elements of the accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) Transaction a. Supplies b. C. d. e. f. Assets (950) Liabilites Stockholder's Equity + Supplies Expense (950) + + +