These financial statements were prepared from the unadjusted trial balance.

Cole Designs Inc.Income StatementFor the Year Ended December 31, 20Y3Fees earned$69,000 Wages expense(44,900)Net income$24,100

Cole Designs Inc.Balance SheetDecember 31, 20Y3Assets Cash $5,750Accounts receivable 32,200Supplies 3,625Prepaid insurance 4,600Office equipment 11,000 Total assets $57,175Liabilities Unearned fees $8,600Stockholders Equity Common stock$12,000 Retained earnings36,575 48,575 Total liabilities and stockholders equity $57,175

These financial statements were prepared from the adjusted trial balance.

Cole Designs Inc.Income StatementFor the Year Ended December 31, 20Y3Fees earned $74,700 Expenses: Wages expense$47,500 Supplies expense3,535 Insurance expense3,400 Depreciation expense1,800 Total expenses (56,235)Net income $18,465

Cole Designs Inc.Balance SheetDecember 31, 20Y3Assets Cash $5,750Accounts receivable 32,800Supplies 90Prepaid insurance 1,200Office equipment$11,000 Accumulated depreciation-office equipment(1,800) 9,200 Total assets $49,040Liabilities Wages payable $2,600Unearned fees 3,500 Total liabilities $6,100Stockholders Equity Common stock$12,000 Retained earnings30,940 42,940 Total liabilities and stockholders equity $49,040

Assume that the Cole Designs Inc. financial statements in the Unadjusted Financial Statements panel were prepared from the unadjusted trial balance and the financial statements in the Adjusted Financial Statements panel were prepared from the adjusted trial balance.

For the following financial statement items, indicate Yes or No if the item was overstated, understated or neither on the financial statements prepared using the unadjusted trial balance.

OverstatedUnderstatedNeitherNet income Stockholders equity Revenues Total assets Total expenses Total liabilities

Journalize the six December 31 adjusting entries for Cole Designs Inc. that adjusted the accounts to arrive at the financial statements in the Adjusted Financial Statements panel. If an amount box does not require an entry, leave it blank.

DateAccountDebitCreditDec 31Accounts Receivable Fees Earned Adjusting Entry Dec 31Supplies Expense Supplies Adjusting Entry Dec 31Insurance Expense Prepaid Insurance Adjusting Entry Dec 31Wages Expense Wages Payable Adjusting Entry Dec 31Unearned Fees Fees Earned Adjusting Entry