Saguaro Home Health Inc. provides home nursing services in the greater Phoenix area. When contacted by a client nurses visit with patient and discuss needed services with the physician of record. Saguaro earns revenue from patient services. Most of the revenues come from billing insurance programs, the State of Arizona or the Medicare Program. The following unadjusted trial balance for December 31, is available. Saguaro Home Health Company Unadjusted Trial Balance December 31, 20XX Debit Credit $ 77,400 151,000 73,000 3,000 90,000 $ 60,000 200,000 Cash Accounts Receivable, net Medical Supplies Extended Warranty Automobiles Accum. Depreciation, Automobiles Building Accum. Depreciation, Building Accounts Payable Dividends Payable Mortgage payable Saguaro, Capital Medical Services Revenue Salary & Wages Expense Gasoline Expense Utilities Expense Saguaro, Withdrawals Totals 50,000 22,000 10,000 100,000 249,900 550,000 288,000 137,500 12,000 10,000 $1,041, 900 $1,041,900 The following adjusting entries need to be made. a. Wages & salaries earned by employees at the end of December but not yet paid amount to $4,000. b. Medical supplies on hand at December 31st amounted to $8,653 C. The company owns 5 automobiles, which were all purchased at the same time and are replaced every three years. The vehicles typically have no salvage value and the depreciation methodology is straight line. This is the third and final year of depreciation. d. The building has an expected useful life of 20 years with no residual value. The depreciation methodology is straight line. e. The company has purchased a three year extended warranty contract to cover the maintenance of its automobile fleet. The contract cost $9,000 (assume equal use each year). This is the third and final year of the extended warranty. f. Patient services provided but not yet recorded at year end totaled $16,000, net of allowance for doubtful accounts g. The company makes annual interest payments each June 30th on the entire mortgage payable of $100,000. The mortgage interest rate is 6%. The fortgage was purchased on July 1 of the current year. Make the necessary adjustments on the attached worksheet and develop an adjusted trial balance. Saguaro Home Health Company Adjusted Trial Balance Worksheet For the Year Ended December 31, 20XX Unadjusted Trial Balance Adjusting Entries Debit Credit Debit Credit Adjusted Trial Balance Debit Credit $ 77,400 151,000 73,000 3,000 90,000 $ 60,000 200,000 50,000 22,000 Cash Accounts Receivable, not Medical Supplies Extended Warranty Automobiles Assum. Depreciation, Automobiles Building assum. Depreciation, Building Accounts Payable Interest Payable Salaries & Wages Payable Dividends Payable Mortgage payable Saguaro, Capital Medical Services Revenue Salary & Wages Expense Supplies Expense Gasoline Expense Deres, Exp. Auto RARBG Exp, Blde Utilities Expense Interest Expense Extended Warranty Expense Saguaro, Withdrawals 10,000 100,000 249,900 550,000 288,000 137,500 12,000 10,000 Totals $1,041,900 $1,041,900 Label the adjusting entries with the proper letter Add adjusting and unadjusted balances to calculate the adjusted values