The following information is from the December 31 un-adjusted trial balance of Excelsior Shop. Cash Accounts Receivable Equipment Accumulated Depreciation Equipment Supplies Notes Payable Service Revenue Insurance Expense Salaries Expense Interest Expense Advertising Expense Debit $ 100,000.00 $ 204,000.00 $145,000.00 Credit $ 72,000.00 $ 12,000.00 $ 100,000.00 $450,000.00 $ 24,000.00 $ 125,000.00 $ 2,500.00 $ 9,500.00 a. 1.00 2.00 From the trial balance and the following information, prepare the annual adjusting necessary on December 31. The equiment has an estimated useful life of 10 years and a salvage value of $25,000 at the end of the 10-year period. The company uses straight-line depreciation method. The note payable is a 90-day note given to the bank November 1. The interest rate for the interest-bearing note is 12%. 3.00 During the month of December, the company sold 1,500 coupons for $20 each and included it in Service Revenue. These coupons can be used for purchases from January 1 through the end of March the following year. 4.00 Advertising expense paid in advance and included in Advertising Expense $2,500. 5.00 6.00 7.00 The company pays $2,500 Salary every Friday. December 31 is Tuesday. The amount of supplies available at the end of the year is $3,000. The company paid $6,000 insurance in advance for the following year. This was recorded as Insurance Expense. b. What adjusted ending balance should be reported in the company's Financial Statement for each account? Journal Entries: Date December 31 31 31 Account Dr Cr Depreciation Expense - Equipment: Cost Salvage Value Depreciated cost Useful life Annual depreciation expense 31 31 31 Accrued Interest: Loan Interest rate Annual interest Monthly interest Total month (Nov-Dec) Total interest 31 Salary Accrued: Weekly salary Daily salary # of days accrued (M - Tu) Total Salary accrued Reported Ending Balances: Cash Account Income Statement Balance Sheet Dr Cr Dr Cr Accounts Receivable Prepaid Advertising Prepaid insurance Supplies Equipment Accumulated Depreciation - Equipment Interest Payable Salaries Payable Unearned Service Revenue Notes payable Service Revenue salaries expense interest expense advertising expense Depreciation expense supplies expense insruance expense