Response to the following problem:
Journalize the adjusting entry needed at December 31 for each of the following independent situations.
a. On October 1, we collected $6,000 rent in advance. We debited Cash and credited Unearned Rent Revenue. The tenant was paying one year's rent in advance.
b. Interest revenue of $800 has been earned but not yet received. The business holds a $20,000 note receivable.
c. Salary expense is $1,500 per day-Monday through Friday-and the business pays employees each Friday. This year December 31 falls on a Wednesday.
d. The unadjusted balance of the Supplies account is $3,100. Supplies on hand total $1,200.
e. Equipment was purchased last year at a cost of $10,000. The equipment's useful life is four years. Record the year's depreciation.
f. On September 1, when we prepaid $1,200 for a two-year insurance policy, we debited Prepaid Insurance and credited Cash.