Wheatley Company developed its unadjusted trial balance dated December 31, 2020, which appears below. Wheatley uses the expedient recording method whenever possible (i.e. it initially records an expense upon payment of cash before goods and services are consumed and a revenue upon receipt of cash before goods or services are transferred). It adjusts its accounts once a year and uses a perpetual inventory system. Ignore income taxes. December 31, 2020 Cash Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation Land Accounts payable Notes payable, 8%, due April 1, 2025 Common shares, no-par, 60,000 shares Retained earnings Sales revenue (all on account) Subscription revenue Cost of goods sold Wheatley Company Unadjusted Trial Balance Debit Credit $40,000 60,000 $6,000 75,000 780,000 100,000 150,000 22,000 200,000 400,000 50,000 900,000 24,000 265,000 60,000 12,000 40,000 30,000 110,000 80,000 $1,702,000 $1,702,000 Rent expense Interest expense Selling expense Insurance expense Wages expense General and administrative expense Totals Additional information: a. Ending inventory by physical count is $65,000. b. The equipment has total estimated useful life of 12 years and an estimated residual value of $60,000. Wheatley uses straight-line depreciation. c. Bad debt expense for 2020 is estimated to be 1.5% of sales. d. The note payable requires interest to be paid semi-annually, on October 1 and April 1. e. $8,000 of wages were earned in December but not recorded or paid. f. The rent expense represents a payment made on January 2, 2020, for three years' rent | (2020, 2021 and 2022). g. The insurance expense represents payment made for one-year policy, paid October 1, 2020. Coverage began on that date. h. The subscription revenue represents cash received from several university libraries for a two-year subscription to a journal published by Wheatley. The subscription period began on July 1, 2020. Instructions: Prepare the necessary adjusting/correcting entries in journal form for the above transactions. Narratives are not required. (16 marks) Item a. Debit Credit b C. d. e. f. g. h