2) After completion of problem 1 above, change the account balances to their adjusted totals and produce an Adjusted Trial Balance dated December 31, 2021. A three-line heading is required. 3) Using your answer from #2 above, determine the following: a. Net Income (Loss) for the year ended December 31, 2021 b. Retained Earnings for the year ended December 31, 2021 Using the unadjusted trial balance above on page 1, along with the adjusting information below, prepare the following: 1) 7 adjusting entries (a-g) necessary for year-end adjustment 2) 5 Initial entries for the 5 deferrals 3) 2 new year entries for the 2 accruals a. A count of supplies shows $500 worth has been used up. b. $75 worth of prepaid insurance has expired c. Depreciation on furniture is $310 this year. d. Depreciation on equipment for the year is $220. e. As of today (year-end), $750 worth of Unearned Revenue has been earned. f. An unbilled invoice is discovered. The $500 invoice was for a tattoo created on December 22, 2021. g. Jordan has only one employee - his son, Allen, who works a 5-day workweek at $1,500 per week. Allen was paid last Friday, and he worked one day this week prior to the end of the year (Monday). His next pay day is Friday, which falls in January. Taunton's Tattoos Unadjusted Trial Balance December 31, 2021 Account Credit Cash Accounts Receivable Prepaid Insurance Supplies Equipment Accumulated Depreciation - Equipment Furniture Accumulated Depreciation - Furniture Salaries Payable Unearned Revenue Common Stock Dividends Service Revenue Salaries Expense Utilities Expense Depreciation Expense - Equipment Depreciation Expense - Furniture Supplies Expense Insurance Expense Debit 4,500 0 150 760 8,500 5,300 1,900 11,700 750 11,170 4,100 710 0 0 24.770 24.770 0 0 0

Which of the following types of adjusting entries would result in a decrease in the amount of a one-year insurance policy premium reported on the balance sheet? Select one: O a. Prepaid expense b. Accrued expense C. Accrued revenue d. Unearned revenue

Which of the following is not a category of adjusting entries?   Question 27 options:   Accruals.   Estimates.   Invoicing.   Prepayments.

Which of the following is true regarding adjusting entries? O a. Adjusting entries are dated as of the first day of the new accounting period. O b. Adjusting entries are not posted to the ledger. O c. Adjusting entries are usually recorded after the end of the period but are dated as of the last day of the period. O d. Adjusting entries are optional with accrual-basis accounting.

Which of the following statements about an adjusted trial balance is correct? A. It is used to prepare financial statements. B. It is prepared to ensure assets equal liabilities. C. It is prepared at the beginning of the year. D. It is prepared before the adjusting journal entries have been made.

i Scenarios - a. Company A increases the allowance for doubtful accounts (ADA). Using the old estimate, ADA would have been $40,000. The new estimate is $45,000. X b. Company B omitted to record an invoice for a(n) $8,000 sale made on credit at the end of the previous year and incorrectly recorded the sale in the current year. The related inventory sold has been accounted for. c. Company C changes its revenue recognition to a more conservative policy. The result is a decrease in prior-year revenue by $3,000 and a decrease in current-year revenue by $4,000 relative to the amounts under the old policy.

GIVE A DETAILED ANSWER  Describe the effect on the financial statements when an adjustment is prepared that records (a) unrecorded revenue and (b) unrecorded expense. On the basis of what you have learned about adjustments, why do you think that adjusting entries are made on the last day of the accounting period rather than at several times during the accounting period?