Check my work Exercise 4.7 (Algo) Preparing Various Adjusting Entries (LO4-1, LO4-2, LO4-3, LO4-4, LO4-5, LO4-6, LO4- 9) Sweeney & Allen, a large marketing firm, adjusts its accounts at the end of each month. The following information is available for the year ending December 31. 1. A bank loan had been obtained on December 1. Accrued interest on the loan at December 31 amounts to $1,040. No interest expense has yet been recorded. 2. Depreciation of the firm's office building is based on an estimated life of 30 years. The building was purchased four years ago for $310,000. 3. Accrued, but unbilled, revenue during December amounts to $52,000. 4. On March 1, the firm paid $1,400 to renew a 12-month insurance policy. The entire amount was recorded as Prepaid Insurance. 5. The firm received $15,000 from King Biscuit Company in advance of developing a six-month marketing campaign. The entire amount was initially recorded as Unearned Revenue. At December 31, $3,800 had actually been earned by the firm. 6. The company's policy is to pay its employees every Friday. Since December 31 fell on a Wednesday, there was an accrued liability for salaries amounting to $2,200. a. Record the necessary adjusting journal entries on December 31. b. By how much did Sweeney & Allen's net income increase or decrease as a result of the adjusting entries performed in part a? (Ignore income taxes.) No Transaction General Journal Debit Credit 1 1 Interest expense 1,040 Interest payable 1,040 2. 2 Depreciation expense - Office building Accumulated depreciation - Office building 861 861 3 3 Accounts receivable Marketing revenue earned 52,000 52,000 4 4 Insurance expense Prepaid insurance 117 117 5 5 Unearned revenue 3,800 Marketing revenue earned 3,800 6 6 Salaries expense Salaries payable 2,200 2,200 Complete this question by entering your answers in the tabs below. Required A Required B By how much did Sweeney & Allen's net income increase or decrease as a result of the adjusting entries performed in part a? (Ignore income taxes.) (Round your final answer to the nearest whole dollar.) Net income