On December 31, adjusting information for Big & Rich Corporation is as follows:
1. Estimated depreciation on equipment is S3, 400.
2. Property taxes amounting to $2,525 have been incurred but are unrecorded and unpaid.
3. Employee wages that are earned by employees but are unpaid and unrecorded amount to $3,900.
4. The 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.