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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

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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 Det Credit Accounts receivable $19,700 7.100 Service supplies inventory Prepaid inorance 1.350 Service truck 1.150 Accumulated depreciation, service trucks Other sta 312,400 5,200 Accounts payable 2.650 Note payable (three years each December 31) 5.400 Contributed capital (4.100 shares outstanding 15.900 Hatained earnings 10.350 Service revenge 48.500 other expenses, oreluding income tax 32,100 Totals 595,200 $95.200 Data not yet recorded a dat December 31, 2020, include the following: a Supples inventory on December 31, 2020, reflecting 5610 remaining on hand. b. Insurance expired during 2020, $460, c. Depreciation expense for 2020, $3,100. d. Wages earned by employees not yet paid on December 31, 2020, $4150 e. Income tax expense, $3,000 Required: 1. Prepare the adjusting entries at December 31, 2020. Of no entry is required for a transaction/event, select "No Journal entry required in the first account field.) Journal entry worksheet 1 5 Record supplies expense for the period. Note: Enter debit before credits Transaction General Journal Debit Credit Record entry Clear entry Viewer ournal 2. Show the effects of the adjusting entries on net earnings and cash. If there is no cash flow effect, select "Mone". Enter any decreases to account balances with a minus sign.) Transaction Earnings Effect on Net Effect on Cash d 3-a. Prepare a statement of earnings for 2020. (Round "Earnings per share" to 2 decimal places SUTTON, INC Statement of Earnings For the Year Ended December 31, 2020 Revenues Operating expenses Total operating expenses Earnings before income tax 0 Earnings per share 3-b. Prepare a statement of financial position at December 31, 2020 SUTTON, INC. Statement of Financial Position As at December 31, 2020 Assets Saved 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) Net earnings 5. Prepare the closing entries at December 31, 2020. (of no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet

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