Use the unadjusted trial balance of Electric Bike on December 31, 2020 Credit Debit $ 9,000 23,565 35,500 2,865 865 4,155 84,390 $ 14,555 8,900 184,715 Cash Accounts receivable Merchandise inventory Store supplies Office supplies Prepaid insurance Equipment Accumulated depreciation, equipment Accounts payable Salaries payable Braeden Li, capital Braeden Li, withdrawals Interest income Sales Sales returns and allowances Cost of goods sold Salaries expense Rent expense Supplies expense Depreciation expense, equipment Insurance expense Totals 66,500 400 533,500 5,970 382,060 97,200 30,000 0 $742,070 $742,070 Required: 1. Record adjusting entries for the following information. a. The records show that the equipment was estimated to have a total estimated useful life of 10 years with a residual value at the end of its life of $15,390. b. The balance in the Prepaid Insurance account was reviewed and it was determined that $300 was unused at December 31, 2020. c. A review of the store supplies on December 31, 2020, revealed a balance on hand of $2,270; a similar examination of the office supplies showed that $685 had been used. d. Accrued salaries payable, $2,250. e. A count of the merchandise inventory revealed a balance on hand December 31, 2020, of $34,610. Journal entry worksheet 12 3 4 5 6 > Record depreciation expense. Note: Enter debits Accumulated Depreciation, Equipment Cost of goods sold Depreciation expense Insurance expense Merchandise Inventory Debit Date Dec 31, 2020 Credit Record entry Clear entry View general journal Journal entry worksheet 1 23 4 5 6 > Record prepaid insurance expired. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31, 2020 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 > Record Store supplies used. Note: Enter det Debit Credit Date Dec 31, 2020 Merchandise Inventory Office supplies Prepaid insurance Salaries expense Salaries payable Store supplies Record entry Clear entry View general journal Journal entry worksheet 1 2 3 5 6 Record Office supplies used. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31, 2020 Record entry Clear entry View general journal Journal entry worksheet Record accrued salaries. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2020 Record entry Clear entry View general journal 2. Prepare a multiple-step income statement showing the expenses in detail. ELECTRIC BIKE Income Statement For Year Ended December 31, 2020 Operating expenses: Total operating expenses Other revenues and expenses