The unadjusted trial balance of Guthrie Inn Company at December 31, 2018, and the data needed for the adjustments follow.

Adjustment data at December 31 follow:
a. As of December 31, Guthrie had $700 of Prepaid Insurance remaining.
b. At the end of the month, Guthrie had $500 of office supplies remaining.
c. Depreciation on the building is $1,200.
d. Guthrie pays its employees weekly on Friday. Its employees earn $1,800 for a five-day workweek. December 31 falls on Wednesday this year.
e. On November 20, Guthrie contracted to perform services for a client receiving $3,600 in advance. Guthrie recorded this receipt of cash as Unearned Revenue.
As of December 31, Guthrie has $1,600 still unearned.
Requirements
1. Journalize the adjusting entries on December 31.
2. Using the unadjusted trial balance, open the accounts (use a four-column ledger) with the unadjusted balances. Post the adjusting entries to the ledger accounts.
3. Prepare the adjusted trial balance.
4. Assuming the adjusted trial balance has total debits equal to total credits, does this mean that the adjusting entries have been recorded correctly? Explain.

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GUTHRIE INN COMPANY Unadjusted Trial Balance December 31, 2018 Balance Debit Credit Account Title $ 13,500 Cash Accounts Receivable 15,100 Prepaid Insurance 4,600 Office Supplies 800 Building 530,000 $ 260,000 Accumulated Depreciation-Building Accounts Payable 1,710 Salaries Payable Unearned Revenue 3,600 Common Stock 288,950 Dividends 2,340 Service Revenue 15,500 Salaries Expense 2,800 Insurance Expense Depreciation Expense Building Advertising Expense 620 Supplies Expense Total $ 569,760 $ 569,760