See the spreadsheet for P3-25. The spread sheet provides the balances in Smithers Inc.'s accounts on May 31, 2017, before and after the adjusting entries have been made.

Required:
Reconstruct the adjusting entries that were made to Smithers Inc.'s spreadsheet on May 31,2017.

For P3-25. Liabilities Accounts Salaries Unearned payable payable revenue Assets Prepaid Property, plant Accumulated Transaction Balance before adjusting entries $50,000 $325,000 S25,000 $120,000 Balance after adjusting entries $50,000 $145,000 S15,000 $120,000 Cash Inventory insurance and equipment depreciation (S44,000) (S69,000) $78,000 $ 0 $55,000 $78,000 $12,000 $20,000