Sutton Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as at the end of the company's fiscal year, December 31, 2020: Account Titles Cash Accounts receivable. Service supplies inventory Prepaid insurance Service trucks Accumulated depreciation, service trucks Other assets Accounts payable Note payable (three years; 9% each December 31) Contributed capital (5,600 shares outstanding) Retained earnings Service revenue Other expenses, excluding income tax Totals Debit $25,700 Credit 10,475 2,100 1,525 41,400 $ 18,400 6,700 4,900 11,400 17,400 11,100 56,000 31,300 $119,200 $119,200 Data not yet recorded at December 31, 2020, include the following: a. Supplies Inventory on December 31, 2020, reflecting $760 remaining on hand. b. Insurance expired during 2020. $610. c. Depreciation expense for 2020, $4,600. d. Wages earned by employees not yet paid on December 31, 2020, $1,900. e. Income tax expense, $3.750. Required: 1. Prepare the adjusting entries at December 31, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 Record supplies expense for the period. Note: Enter debits before credits. Transaction a. General Journal Debit Credit Record entry Clear entry View general journal 2. Show the effects of the adjusting entries on net earnings and cash. (If there is no cash flow effect, select "None". Enter any decreases to account balances with a minus sign.) Transaction Effect on Net Earnings Effect on Cash a b. C d 0. 02:58:40 3-a. Prepare a statement of earnings for 2020. (Round "Earnings per share" to 2 decimal places.) Revenues SUTTON, INC. Statement of Earnings For the Year Ended December 31, 2020 Operating expenses. Total operating expenses Earnings before income tax Earnings per share 0 3-b. Prepare a statement of financial position at December 31, 2020. SUTTON, INC. Statement of Financial Position As at December 31, 2020 Assets 0 Total assets $ 0 Liabilities Total liabilities 0 Shareholders' Equity Total shareholders' equity 0 Total liabilities and shareholders' equity $ 0 4. Compute the net earnings for the year, assuming that you did not make an adjustment to the balance of the supplies inventory account. (Do not round intermediate calculations. Round the final answer to the nearest whole dollar.) Not earnings 5. Prepare the closing entries at December 31, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet