Reference no: EM131256956

Recording Adjusting Entries and Preparing an Adjusted Trial Balance [LO 4-2, 4-3] [The following information applies to the questions displayed below.] North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31. Account Titles Debit Credit Cash $ 11,800 Accounts Receivable 5,800 Prepaid Rent 2,360 Equipment 20,800 Accumulated Depreciation—Equipment $ 1,120 Accounts Payable 1,120 Income Tax Payable 0 Common Stock 24,600 Retained Earnings 1,900 Sales Revenue 49,120 Salaries and Wages Expense 24,800 Utilities Expense 12,300 Rent Expense 0 Depreciation Expense 0 Income Tax Expense 0 Totals $ 77,860 $ 77,860 Other data not yet recorded at December 31: a. Rent expired during the year, $1,180. b. Depreciation expense for the year, $1,120. c. Utilities owing, $8,800. d. Income tax expense, $370. References Section BreakE4-15 Recording Adjusting Entries and Preparing an Adjusted Trial Balance [LO 4-2, 4-3] 4.value: 1.23 points Required information E4-15 Part 1 Required: 1. Indicate the accounting equation effects of each required adjustment. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) Hints Referencese Book & Resources Hint #1 Check my work 5.value: 1.23 points Required information E4-15 Part 2 2. Prepare the adjusting journal entries required at December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Hints Referencese Book & Resources Hint #1 Check my work 6.value: 1.23 pointsRequired information E4-15 Part 3 3. Summarize the adjusting journal entries in T-accounts. After entering the beginning balances and computing the adjusted ending balances, prepare an adjusted trial balance as of December 31. Hints Referencese Book & Resources Hint