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Sweeney & Allen, a large marketing firm, adjusts its accounts at the end of each month. The following information is available for the year ending December 31. 1. A bank loan had been obtained on December 1. Accrued interest on the loan at December 31 amounts to $1,070. No interest expense has yet been recorded. 2. Depreciation of the firm's office building is based on an estimated life of 30 years. The building was purchased four years ago for $390,000. 3. Accrued, but unbilled, revenue during December amounts to $71,000. 4. On March 1, the firm paid $1,500 to renew a 12-month insurance policy. The entire amount was recorded as Prepaid Insurance. 5. The firm received $15,000 from King Biscuit Company in advance of developing a six-month marketing campaign. The entire amount was initially recorded as Unearned Revenue. At December 31, $2,900 had actually been earned by the firm. 6. The company's policy is to pay its employees every Friday. Since December 31 fell on a Wednesday, there was an accrued liability for salaries amounting to $2,000. a. Record the necessary adjusting journal entries on December 31. b. By how much did Sweeney & Allen's net income increase or decrease as a result of the adjusting entries performed in part a? (Ignore income taxes.) Complete this question by entering your answers in the tabs below. Required A Required B Record the necessary adjusting journal entries on December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar.) Required A Required B Record the necessary adjusting journal entries on December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar.) View transaction list Journal entry worksheet 1 2 3 456 Record interest accrued on bank loan during December. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal Required A Required B Record the necessary adjusting journal entries on December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar.) View transaction list Journal entry worksheet < 1 2 3 456 Record depreciation on office building. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit Record entry Clear entry View general journal Required A Required B Record the necessary adjusting journal entries on December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 Record the accrued marketing revenue earned in December. Note: Enter debits before credits. Transaction 3 General Journal Debit Credit Record entry Clear entry View general journal > Required A Required B Record the necessary adjusting journal entries on December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar.) View transaction list Journal entry worksheet > 1 2 3 4 5 6 Record the insurance expense. Note: Enter debits before credits. Transaction 4 General Journal Debit Credit Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required A Required B Record the necessary adjusting journal entries on December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar.) View transaction list Journal entry worksheet 1 2 3 4 5 6 Record portion of unearned revenue that had become earned in December. Note: Enter debits before credits. Transaction 5 General Journal Debit Credit Record entry Clear entry View general journal > Required A Required B Record the necessary adjusting journal entries on December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar.) View transaction list Journal entry worksheet > 1 2 3 4 5 Record the accrued salaries in December. Note: Enter debits before credits. Transaction 6 co General Journal Debit Credit Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required A Required B By how much did Sweeney & Allen's net income increase or decrease as a result of the adjusting entries performed in part a? (Ignore income taxes.) (Round your final answer to the nearest whole dollar.) Net income < Required A Required B

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