The accountant for Reese's Towing, Inc. prepared the following trial balance at December 31, 2021, the end of their first year of operations Debit Credit Cash $ 5,700 Accounts Receivable 2.500 Interest Receivable 0 0 Prepaid Insurance Notes Receivable 2,000 Supplies 600 Equipment 18,500 Accumulated Depreciation $0 Unearned Towing Fees 0 Common Stock 15.100 Retained Earnings, January 1, 2021 0 Dividends. 3,300 Towing Fees Earned 30,600 Interest Revenue 0 Insurance Expense 2.100 Salaries Expense 7,700 Supplies Expense 0 Utilities Expense 1,200 Depreciation Expense 0 Rent Expense 2.100 $45.700 $45.700 Additional information items: a. Towing Fees Eamed includes a $1,200 prepayment by a client on December 1, 2021 for towing services to be rendered over the four months of December through March. b. The Insurance Expense is for a 6-month policy paid on September 1, 2021 C. A physical count of the Supplies on December 31, 2021 shows $50 in Supplies on hand. d. The Equipment has a life of 5 years, was purchased on March 1, 2021, and Reese will use the straight- line method of recording depreciation. Reese expects that the Equipment will have a $500 salvage value. e. The Note Receivable is a 6%, 9-month note dated October 1, 2021 Instructions Prepare adjusting entries for a through e for the year 2021 In Column 1 indicate whether the adjusting entry is (A) an accrual, (D) a deferral, or (C) a cost allocation In Column 2 indicate whether a reversing entry would be (R) required, (N) not prepared, or (O) optional DR CR 1 2 100 100 a Towing fees Eamed Unearred towing Fee prepaid insurance insurance expense 12,568 D 2,568 d 40 0 IA e rest HO recievable interest revence Show calculations below