Reynolds Computer Service offers dato processing services to retall clothing stores. The following data have been collected to aid in the preparation of adjusting entries for Reynolits Computer Service for the current year: a. Computer equipment was purchased from IBM 3 years ago at a cost of $540,000. Annual depreciation is $132,500. b. A fire insurance policy for a 2-year period beginning on September 1 was purehased from Good Hands Insurance Company for $12,240 cash. The entire amount of the prepayment was debited to prepaid insurance. (Assume that the beginning balance of prepaid insurance was 10 and that there were no other debits or credits to that account during the year) c. Preynolds has a contract to perform the payroll accounting for Dayton's Department Stores, On December 31,$5,450 of services have been performed under this contract but are d. Reynolds rents 12 computer terminals for $65 per month per terminal from Extreme Terminals tnc. At December 31 , Reynolds owes Extreme Terminals for half a menth's rent on each terminal. The amount owed is unrecorded. c. Perry's Tax Service prepays rent for time on Aleynolds' computer, When payments are received from Perry's Tax Service, feynolds credits unearned rent revenue. AE December 31 . reynolds has earned $1,810 for computer time used by Perry's Tax Service during December. Required: b. Dec. 31 c. Dec. 31 d. Dec. 31 e. Dec, 31 2. Conceptual Connection: What Would be the effect on the balance sheet and the income statement if the accountant failed to make the above adjusting entries? a, Computer equipment purchased b. Prepaid insurance c. Unearned service revenue d. Rent owed is unrecorded e. Unearned rent revenue