YORKIS PEREZ, CONSULTING ENGINEER TRIAL BALANCE DECEMBER 31, 2020 Debit Credit $ 44,500 49,600 $ 750 1,960 1,100 4,000 25,000 Cash Accounts Receivable Allowance For Doubtful Accounts Inventory Prepaid Insurance Prepaid Rent Equipment Accumulated Depreciation Equipment Unearned Revenue Notes Payable Owner's Capital Service Revenue Rent Expense Salaries and Wages Expense Utilities Expenses Office Expense 6,250 15,000 7,200 35,010 104,000 9,750 30,500 1,080 720 $167,960 $167,960 Note: none of the below adjustments/transactions have been recorded. They are NOT reflected in the above trial balance. You'll need to add some accounts as you record the adjustments/transactions below: 1. Provided $10,100 of the services related to the unearned revenue reflected in the trial balance. Record the adjustment. 2. Services performed for clients that were not recorded by December 31, $31,200. Record the accrued revenue. 3. Bad debt expense for the year is $5,510. Record bad debt expense. 4. Insurance expired during the year is $500. Record the adjustment. 5. Equipment has a 10 year useful life and salvage value of $5,000. Record depreciation expense using the straight-line method. 6. The company took out a loan from the bank (this transaction was already recorded). It was a 180- day, 10% note for $7,200 taken out on November 1, 2020. Record the accrued interest expense for the months of November and December. 7. Rent on the administrative offices building is $1,000 per month. The company paid for 4 month's rent on December 1, 2020 (this entry was already recorded as prepaid rent). Record the used portio of prepaid rent at December 31, 2020. 8. Office salaries and wages earned but unpaid December 31, 2020, $7,350. Record accrued salaries and wages. 9. The owner of the company withdrew $2,000 cash for personal use. Instructions (a) From the trial balance and other information given, prepare adjusting/journal entries as of December 31, 2020 (items 1-9 above). (b) From the unadjusted trial balance and the adjusting entries above, create an adjusted trial balance below. Adjusted Trial Balance Debit Accounts Credit Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Prepaid Insurance Prepaid Rent Equipment Accumulated Depr. -- Equipment Salaries and Wages Payable Interest Payable Unearned Revenues Notes Payable Owner's Capital Owner's Withdrawals Service Revenue Rent Expense Salaries and Wages Expense Interest Expense Depreciation Expense Bad Debt Expense Utilities Expense Office Expense Insurance Expense Totals (c) Prepare an income statement, a statement of owner's equity, and a balance sheet for fiscal year 2020. The statements should reflect all the adjustments recorded above