The unadjusted trial balance and adjustment data of Martha’s Motors at December 31, 2024, follow:

Adjustment data at December 31, 2024: 

a. Depreciation on equipment, $2,100. 

b. Accrued Wages Expense, $1,100. 

c. Office Supplies on hand, $500. 

d. Prepaid Insurance expired during December, $600. 

e. Unearned Revenue earned during December, $4,800. 

f. Accrued Service Revenue, $1,300. 2025 transactions: 

a. On January 4, Martha’s Motors paid wages of $1,900. Of this, $1,100 related to the accrued wages recorded on December 31. 

b. On January 10, Martha’s Motors received $1,500 for Service Revenue. Of this, $1,300 is related to the accrued Service Revenue recorded on December 31.

Requirements 

1. Journalize adjusting entries. 

2. Journalize reversing entries for the appropriate adjusting entries. 

3. Refer to the 2025 data. Journalize the cash payment and the cash receipt that occurred in 2025.

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Account Title Cash MARTHA'S MOTORS Unadjusted Trial Balance December 31, 2024 Accounts Receivable Office Supplies Prepaid Insurance Equipment Accumulated Depreciation Equipment Accounts Payable Wages Payable Unearned Revenue Eaglin, Capital Eaglin, Withdrawals Service Revenue Depreciation Expense-Equipment Wages Expense Insurance Expense Utilities Expense Supplies Expense Total Balance Debit $ 4,200 27,200 1,000 2,400 52,400 3,100 1,600 1,300 $ 93,200 Credit $ 34,600 15,000 7,900 18,500 17,200 $ 93,200