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 companys fiscal year, December 31, 2020: Account Titles Debit Credit Cash $ 20,100 Accounts receivable 7,325 Service supplies inventory 1,400 Prepaid insurance 1,175 Service trucks 28,800 Accumulated depreciation, service trucks $ 12,800 Other assets 5,300 Accounts payable 2,800 Note payable (three years; 8% each December 31) 5,800 Contributed capital (4,200 shares outstanding) 16,000 Retained earnings 10,400 Service revenue 49,000 Other expenses, excluding income tax 32,700 Totals $ 96,800 $ 96,800 Data not yet recorded at December 31, 2020, include the following: Supplies inventory on December 31, 2020, reflecting $620 remaining on hand. Insurance expired during 2020, $470. Depreciation expense for 2020, $3,200. Wages earned by employees not yet paid on December 31, 2020, $1,200. Income tax expense, $3,050. 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.)

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.)

3-a. Prepare a statement of earnings for 2020. (Round "Earnings per share" to 2 decimal places.)

3-b. Prepare a statement of financial position at December 31, 2020.

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.)

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.) PrevQuestion 6 of 12 Total6 of