The unadjusted and adjusted trial balances of HD Rizzle, Inc. are as follows:

Required
a. Compare the two trial balances and recreate all adjusting journal entries that were made at December 31.
b. What is the net effect of the adjusting journal entries on net income?

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HD Rizzle, Inc. Trial Balance December 31 Unadjusted Debit Credit Debit Credit 3,500 Adjusted Cash Accounts Receivable 8,250 Prepaid Insurance 4,600 Supplies Buildings Land Accumulated Depreciation Accounts Payable Salaries Payable Unearned Revenue Notes Payable Common Stock Retained Earnings Service Revenue Advertising Expense 5,600 Depreciation Expense Insurance Expense Salaries Expense Supplies Expense Utilities Expense $ 3,500 10,750 3,400 200 165,000 75,000 165,000 75,000 31,500 11,000 1,800 10,050 50,000 100,000 34,600 53,050 15,000 9,950 12,050 50,000 100,000 34,600 48,550 5,600 16,500 1,200 9,400 400 1,050 7,600 Totals $270,150 $270,150 $292,000 S292,000