The unadjusted trial balance at December 31, 2018, and the data for the adjustments follow:

Unadjusted Trial Balance December 31, 2018 Balance Balance Account Title Debit Credit Cash

$ 40,000 Accounts Receivable 12,000 Prepaid Insurance 3,000 Office Supplies 6,000 Accounts Payable $5,000 Advertising Payable 0 James, Capital 37,000 James, Withdrawals 5,000 Service Revenue 44,000 Advertising Expense 500 Insurance Expense 1,500 Office Supplies Expense 0 Rent Expense 6,000 Salaries Expense 12,000

________

Total $ 86,000

$ 86,000

Data for adjustments:

a. prepaid 6 months of business insurance on September 30, 2018, with coverage beginning on October 1. treats deferred expenses initially as assets. b. A physical count of office supplies was made on December 31, 2018. This count showed a balance of $4,200 office supplies on hand. c. On December 31, 2018, received a bill for the November and December advertising in a local newspaper, $800. This bill will be paid on its due date, which is 1/10/2019. Requirements 1. Journalize the adjusting entries on December 31, 2018. 2. Prepare the December 31, 2018 adjusted trial balance. Use a proper heading.