(Learning Objectives 1, 3: Explain how accrual accounting differs from cash-basis accounting; adjust the accounts) An accountant made the following adjustments at December 31, the end of the accounting period:

Prepaid insurance, beginning, $400. Payments for insurance during the period, $1,200. Prepaid insurance, ending, $700.

• b. Interest revenue accrued, $1,600.
• c. Unearned service revenue, beginning, $1,100. Unearned service revenue, ending, $500.
• d. Depreciation, $4,800.
• e. Employees