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.