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The December 31, 2019, trial balance of Highlighter Inc. included the following selected accounts: Accounts receivable Unearned service revenue Prepaid insurance Equipment Accumulated depreciation-equipment Salary
The December 31, 2019, trial balance of Highlighter Inc. included the following selected accounts: Accounts receivable Unearned service revenue Prepaid insurance Equipment Accumulated depreciation-equipment Salary expense $176,000 24,000 36,000 280,000 30,000 130,000 Additional data: One-third of the revenue received in advance (unearned service revenue) has been earned by December 31, 2019. The prepaid insurance represents the annual premium on a policy providing coverage starting September 1, 2019. No insurance expense has been recorded to date. Since the last payday, employees have earned an additional $2,500 which has not yet been paid or recorded. The equipment has an estimated life of 10 years and no expected value at the end of its life. Services performed but unbilled and uncollected at year end amount to $6,500. Required Prepare the necessary year-end adjusting entries as of December 31, 2019. Show all calculations, if any
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