The following are the trial balance and the other information related to Bruce Monty, who operates a construction hauling business. MONTY TRIAL BALANCE DECEMBER 31, 2020 Debit Credit Cash $37,000 Accounts Receivable 50,200 Allowance for Doubtful Accounts $2,800 Supplies 3,080 Prepaid Insurance 1,100 Equipment 26,000 Accumulated Depreciation-Equipment 7,000 Notes Payable 8,400 Owner's Capital 45,740 Owner's Capital Service Revenue 45,740 95,410 Rent Expense 9,100 Salaries and Wages Expense 31,050 Utilities Expenses 1,180 Office Expense 640 $159,350 $159,350 1. Fees received in advance from clients $5,700, which were recorded as revenue. 2. Services performed for clients that were not recorded by December 31, $5,600. 3. Equipment is being depreciated at 8% per year. 4. Bad debt expense for the year is $1,230. 5. Insurance expired during the year $500. 6. Monty gave the bank a 90-day, 5% note for $8,400 on December 1, 2020. J. insurance expired during the year $500. 6. Monty gave the bank a 90-day, 5% note for $8,400 on December 1, 2020. 7. Rent of the building is $700 per month. The rent for 2020 has been paid, as has that for January 2021. 8. Office salaries and wages earned but unpaid December 31, 2020, $1,270. Monty withdrew $13,000 cash for personal use during the year. (a) Your answer is correct. From the trial balance and other information given, prepare annual adjusting entries as of December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Use 360 days for calculation.) No. Account Titles and Explanation 1. Service Revenue Unearned Service Revenue 2. Accounts Receivable Service Revenue 3. Depreciation Expense Accumulated Depreciation-Equipment 4. Bad Debt Expense Allowance for Doubtful Accounts 5. Insurance Expense Debit 5700 Credit 5600 2080 1230 500 5700 5600 2080 1230 No. Account Titles and Explanation 1. Service Revenue Unearned Service Revenue 2. Accounts Receivable Service Revenue 3. Depreciation Expense Accumulated Depreciation-Equipment 4. Bad Debt Expense Allowance for Doubtful Accounts 5. Insurance Expense Debit 5700 Credit 5600 2080 1230 500 5700 5600 2080 1230 Allowance FOI DOUDLIGI ACcounts 5. Insurance Expense Prepaid Insurance 6. Interest Expense Interest Payable 7. Prepaid Rent Rent Expense 8. Salaries and Wages Expense Salaries and Wages Payable 500 35 700 1270 1200 500 35 700 1270 Prepare an income statement for 2020. Service Revenue Expenses Rent Expense MONTY Income Statement For the Year Ended December 31, 2020 8400 i Salaries and Wages Expense 32320 i Utilities Expenses Office Expense Depreciation Expense 1180 640 i 2080 i +A 95310 Salaries and Wages Expense 32320 Utilities Expenses Office Expense 1180 640 i Depreciation Expense 2080 i Bad Debt Expense 1230 i Insurance Expense 500 i Interest Expense Total Expenses Net Income/(Loss) 35 i $ 46385 48925 Prepare a statement of owner's equity for 2020. (List items that increase owner's equity first.) MONTY Statement of Owners' Equity For the Year Ended December 31, 2020 Onwer's Capital, January 1 Add Net Income/(Loss) Less Owner's Drawings Owner's Capital, December 31 +0 45740 48925 -13000 i 81665 Prepare a statement of owner's equity for 2020. (List items that increase owner's equity first.) MONTY Statement of Owners' Equity For the Year Ended December 31, 2020 Onwer's Capital, January 1 Add Net Income/(Loss) Less Owner's Drawings Owner's Capital, December 31 +0 45740 48925 -13000 i 81665 Tour answer is partially correct. Prepare a classified balance sheet for 2020. (List current assets in the order of liquidity.) Current Assets Cash Accounts Receivable Less MONTY Balance Sheet December 31, 2020 Assets MONTY Balance Sheet December 31, 2020 $ Assets Total Liabilities and Owner's Equity Interest Payable Notes Payable Unearned Service Revenue Liabilities and Owner's Equity $ Total Liabilities and Owner's Equity Interest Payable Notes Payable Unearned Service Revenue Liabilities and Owner's Equity Liabilities and Owner's Equity $ $ $