On 31/12/2020, the following balances appeared in the trial balance of Al Ghanim Company

Al Ghanim Co. Partial Trial Balance December 31
Prepaid insurance	1,500
Supplies	1,000
Unearned service revenue		1,500
Equipment	50,000

Additional information:

a. An insurance policy examination showed SR1,000 of expired insurance

b. An inventory count showed SR200 of unused shop supplies still available

c. Depreciation expense on shop equipment, SR10,000

d. SR800 of the Unearned service account balance was earned by year-end.

Required :

1. Make the necessary adjusting entries.

2. Show the impact of these adjustments on the income statement and the balance sheet statement.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Step 12 1 Necessary adjusting entries a ... View the full answer