Section C Adjusting Entries, Adjusted Trial Balance and Closing Entries The following trial balance was taken from the books of Gemo Corporation at the end of its fiscal year on December 31, 2018. Account Debit Credit Cash $18,000 50,000 Accounts Receivable Notes Payable 12,000 1,000 Allowance for Doubtful Accounts Supplies Prepaid Insurance Equipment, cost Accumulated Depreciation-Equip. Service Revenue Common Stock Retained Eanings Unearned Service Revenue Cost of revenue Salaries and Wages Expense Rent Expense 34,000 20,000 100,000 25,000 286,800 44,200 50,000 5,000 130,000 54,000 18,000 Totals $424,000 $424,000 At the end of the year, adjustments are required the following items that have either not yet been recorded or not recorded properly. a. Insurance expired during the year, $2,000. b. Estimated bad debts for the year, 3% of accounts receivable. c. Depreciation on equipment, 5% per year on original cost. d. The note payable is a 90-day 10% note that was signed on November 1, 2018. e. Rent paid in advance at December 31, $5,400 (originally charged to expense). f. Accrued salaries and wages at December 31, $3,200. g. Of the unearned service revenue, $2,600 was earned on December 31, 2018. h. An inventory count on December 31, 2018 showed $4,000 of supplies on hand. 2 An amount of $2,500 for services yet to be performed was recorded as i. service revenue. Instructions From the unadjusted trial balance and information given below it, prepare annual adjusting entries on December 31, 2018 Prepare an adjusted trial balance on December 31, 2018 Prepare necessary closing entries for nominal accounts on December 31, i. 2018