On December 31, adjusting information for Big & Rich Corporation is as follows:
1. Estimated depreciation on equipment is $3,400.
2. Property taxes amounting to $2,525 have been incurred but are unrecorded and unpaid.
3. Employee wages that have been earned by employees but are unpaid and unrecorded amount to $3,900.
4. The Service Revenue account includes amounts that have been paid by customers for services that have not yet been completed. The amount has been determined to be $5,500.
5. Interest of $200 on a $25,000 note payable has not been recorded or paid.
Instructions
a. Prepare the adjusting entries.
b. Prepare the reversing entries, where appropriate.
