Option #1: Preparing Adjusting Entries in a
WorksheetFollowing is the unadjusted trial balance of Skylar Gaming, Inc.
at the end of its first year of operations, December 31, 20x7:Account NameDR.CR.Cash$71,550Accounts Receivable$25,200Supplies$550Prepaid Insurance$12,000Equipment$31,750Accumulated Depreciation-Equipment$4,050Accounts Payable$6,700Salaries Payable$0Unearned Revenue$2,200Common Stock$45,700Retained Earnings$23,850Dividends$3,500Revenue$80,750Depreciation Expense-Equipment$2,000Salaries Expense$4,750Insurance Expense$3,100Rent Expense$4,200Supplies Expense$2,500Utilities Expense$2,150$163,250$163,250The following additional information is available:Skylar Gaming, Inc. needs to accrue $2,000 in salaries that
will not be paid until next month.Skylar Gaming, Inc. has earned $2,000 of the services that were
paid for in advance as...