The following are the trial balance and the other information related to Brian Consulting Engineer Credit $754 BRIAN CONSULTING ENGINEER TRIAL BALANCE DECEMBER 31, 2020 Debit Cash $29.500 Accounts Receivable 56.200 Allowance for Doubtful Accounts Supplies 2.370 Prepaid Insurance 1,710 Equipment 26,900 Accumulated Depreciation Equipment Notes Payable Common Stock Retained Earnings Service Revenue 6,445 7,200 10,000 22,944 113.359 113,359 Service Revenue Rent Expense Salaries and Wages Expense Utilities Expenses Office Expense 9.802 31,690 1,830 700 $160,702 $160,702 1 2 3. 4 5 Fees received in advance from clients $6,390, which were recorded as revenue. Services performed for clients that were not recorded by December 31, $4,499. Bad debt expense for the year is $1,294. Insurance expired during the year $499. Equipment is being depreciated at 10% per year. Brian gave the bank a 90-day, 10% note for $7.200 on December 1, 2020 Rent of the building is $754 per month. The rent for 2020 has been paid, as has that for January 2021, and recorded as Rent Expense Office salaries and wages earned but unpaid December 31, 2020. $2,266. 6 7. 8. 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 for the amounts) No. Account Titles and Explanation Debit Credit 1. Service Revenue 6390 Unearned Service Revenue 6390 2 Accounts Receivable 4499 Service Revenue 4499 3 Bad Debt Expense 1294 Allowance for Doubtful Accounts 1294 499 4. Insurance Expense Prepaid Insurance 499 5. Depreciation Expense 2690 2690 Accumulated Depreciation-Equipment 60 6. Interest Expense 60 Interest Payable 7 754 Prepaid Rent 754 Rent Expense 2266 8. Salaries and Wages Expense 2266 Salaries and Wages Payable (61) Prepare an income statement for 2020. (Enter loss using either a negative sign preceding the number eg.-45 or parentheses es. (45 BRIAN CONSULTING ENGINEER Income Statement For the Year Ended December 31, 2020 Drawings MD $ $