CHAPTER 4 Completing the Accounting Cycle and Classifying Accounts ou were one of the pay its obligations problem 4-8B Adjusting entries and closing entries LO2, 3, 5 Iseye Market Research Company (BMRC) specializes in conducting focus groups for businesses launchmb new product. BMRC analyzes customer likes and dislikes to ensure new products will be successful. No. Account Accounts payable . Debit Credit 201 108 Accounts receivable . $ 100 168 Accumulated depreciation, equipment.. $2,000 184 Accumulated depreciation, office furniture . 7,250 101 Cash ... 3,10 1,500 302 Consulting revenue.. Copyright .. 44,000 194 251 Dan Eagle, capital.. 4,200 Dan Eagle, withdrawals. 24,715 301 3.500 606 Depreciation expense, office furniture . 700 167 Equipment.... 16,00 633 Insurance expense. 600 401 Interest income. 70 623 Interest expense. 30 233 Long-term notes payable. 4,000 145 Notes receivable... 5,000 183 Office furniture... 5, 100 104 Short-term investments . 4,000 126 Supplies..... 750 637 Supplies expense .. 2,150 652 Telephone expense. 470 203 Unearned consulting revenue.. 3,375 688 Utilities expense.. 3,230 612 Wages expense. 37,380 Totals .... $86,610 $86,610 You are the accounting manager. Your staff submitted the above trial balance for December 31, 2020. In your review, you discover the following additional information that has not been included in the trial balance. . The equipment has an estimated useful life of 16 years. If you need to create a new account, use account number 604. b. Employees were paid $3,100 for 10 days of work. This payroll included 2 days of payroll in December that $49,000 pay- were not recorded at year-end. If you need to add an account, use account number 202. n the year. c. On December 31, BMRC completed a focus group for a client on handbags. An invoice was sent to the company for $5,000 due January 31, 2021. d. On December 31, the company completed a market research report for a client. The client had prepaid $3,000 for this service in November. changes in Required 1. Prepare the missing adjusting entries for transactions a-d. nt and non- 2. Prepare an adjusted trial balance. eparated? 3. Based on your adjusted trial balance, prepare the closing entries. 303