Among other items, the trial balance of Filmblaster, Inc., a movie rental company, at December 31 of the current year includes the following account balances:
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Debits
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Prepaid Insurance
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USD 10,000
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Prepaid Rent
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USD 14,400
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Supplies on Hand
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USD 2,800
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Examination of the records shows that adjustments should be made for the following items:
a. Of the prepaid insurance in the trial balance, USD 4,000 is for coverage during the months after December 31 of the current year.
b. The balance in the Prepaid Rent account is for a 12-month period that started October 1 of the current year.
c. USD 300 of interest has been earned but not received.
d. Supplies used during the year amount to USD 1,800.
Prepare the annual year-end adjusting journal entries at December 31.