Section 2 Accounting Applications How does Reliable adjust its revenues and expenses so that its net income is properly measured? Reliable's trial balance follows. A B 1 Reliable Answering Service 2 Trial Balance 3 December 31, 2014 4 5 Coh00) G Accounts Receivable (05 z Office Supplies CD) Prepaid Insurance (TS) Office Equipment (2) 10 Accumulated Depreciation - Office Equipmeni(125) 11 Accounts Payable 200) 12. Unnamed Revenue 205 ET. Ramos, Capital (300) 14 T. Ramos, Withdrawal (305) 15 Answering Service Revenge (HD) Wages Expense (500 Rort Exporte (505) 2,100 1.250 180 240 3,400 600 700 450 4.870 400 2.000 1.500 400 9530 9.530 The following information is also available for the company on December 31, 2014: 1. Insurance that expired during December amounted to $40 The following information is also available for the company on December 31, 2014: 1. Insurance that expired during December amounted to $40. 2. Office supplies on hand on December 31 totaled $75. 3. Depreciation for December totaled $100. 4. Accrued wages on December 31 totaled $120. 5. Revenues earned for services performed in December but not billed by the end of the month totaled $300. 6. Revenues received in advance of services still to be performed totaled $300 at the end of the year. REQUIRED In order to understand how Reliable adjusts its revenues and expenses so that its net income is properly measured, complete the following: ayout References Mailings Review View Add-ins Help 6. Revenues received in advance of services still to be performed totaled $300 at the end of the year. REQUIRED In order to understand how Reliable adjusts its revenues and expenses so that its net income is properly measured, complete the following: 1. Open ledger accounts for the accounts in the trial balance PLUS the following: Wages Payable (210), Office supplies Expense (510), Depreciation Expense - Office Equipment (515) and Insurance Expense (520) 2. Determine the required adjusting entries and record them in the general journal. 3. Post the entries to the general ledger. Open new general ledger accounts as needed. 4. Prepare an adjusted trial balance. 5. Prepare an income statement, a statement of owner's equity, and a balance sheet for the month ended December 31, 2014