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The unadjusted trial balance of Sketch Star Makers Inc., prepared as of December 31, 2018,...

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Accounting

The unadjusted trial balance of Sketch Star Makers Inc., prepared as of December 31, 2018, includes the following account balances. All of the accounts listed have normal balances.

Cash $ 16,000
Accounts Receivable 3,200
Supplies 3,400
Prepaid Insurance 7,200
Equipment 22,000
Accumulated Depreciation 3,200
Notes Payable (long-term) 32,000
Deferred Revenue 11,000
Service Revenue 42,000
Salaries and Wages Expense 36,000

The following information is also available:

  1. A) A count of supplies revealed $1,600 worth on hand at December 31, 2018.
  2. B) An insurance policy, purchased on January 1, 2018, covers four years.
  3. C) The equipment depreciates at a rate of $2,200 per year; no depreciation has been recorded for 2018.
  4. D) One half (or 50%) of the amount recorded as Deferred Revenue remains deferred as of December 31, 2018.
  5. E) The accrued amount of salaries and wages at December 31, 2018 is $3,200.

Required:

Prepare the required adjustments for the company as of December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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