The Righter Shoe Store Company prepares monthly financial statements for its bank. The November 30 and December 31, 2018, trial balances contained the following account information: Cr. Dr. Supplies Prepaid insurance Salaries and wages payable Deferred rent revenue Nov. 30 Dr. 3,000 7,500 17,500 5,000 Dec. 31 Cr. 4,500 5,250 16,500 2,500 The following information also is known: a. The December income statement reported $3,500 in supplies expense. b. No insurance payments were made in December. c. $17,500 was paid to employees during December for salaries and wages. d. On November 1, 2018, a tenant paid Righter $7,500 in advance rent for the period November through January. Deferred rent revenue was credited. Required: 1. Using the above information for December, complete the T-accounts below. The beginning balances should be the balances as of November 30. 2. Using the above information, prepare the adjusting entries Righter recorded for the month of December. Stanley and Jones Lawn Service Company (S&J) maintains its books on a cash basis. However, the company recently borrowed $250,000 from a local bank and the bank requires S&J to provide annual financial statements prepared on an accrual basis. During 2018, the following cash flows were recorded: $ 470,000 Cash collected from customers Cash paid for: Salaries Supplies Rent Insurance Miscellaneous Net operating cash flow $ 195,000 40,000 24,000 7,000 35,000 301,000 $ 169,000 You are able to determine the following information about accounts receivable, prepaid expenses, and accrued liabilities: Accounts receivable Prepaid insurance Supplies Accrued liabilities (for miscellaneous expenses) January 1, 2018 $36,000 0 2,500 December 31, 2018 $ 29,000 3,500 3,300 3,900 5,800 In addition, you learn that the bank loan was dated September 30, 2018, with principal and interest at 6% due in one year. Depreciation on the company's equipment is $14,000 for the year. Required: Prepare an accrual basis income statement for 2018. (Ignore income taxes.) Newman Consulting Company maintains its records on a cash basis. During 2018 the following cash flows were recorded: cash received from customers, $550,000; and cash paid for salaries, utilities, and advertising, $305,000, $48,000, and $25,000, respectively. You also determine that customers owed the company $65,000 and $73,000 at the beginning and end of the year, respectively, and that the company owed the utility company $7,000 and $3,500 at the beginning and end of the year, respectively. Complete the table to determine accrual net income for the year. Revenues Expenses: Salaries expense 305,000 Utilities expense Advertising expense 25,000 Net Income