Tyndal Company had the following items that required adjustment at December 31, 2019. a. Purchased equipment for

Question:

Tyndal Company had the following items that required adjustment at December 31, 2019.
a. Purchased equipment for $40,000 on January 1, 2019. Tyndal estimates annual depreciation expense to be $3,100.
b. Paid $2,400 for a 2-year insurance policy on July 1, 2019. The amount was debited to Prepaid Insurance when paid.
c. Collected $1,200 rent for the period December 1, 2019 to March 30, 2020. The amount was credited to Unearned Service Revenue when received.
Required:
1. Prepare the adjusting entries needed at December 31.
2. What is the effect on the if these adjusting entries were not made?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...