Journalizing adjusting entries
Journalize the adjusting entry needed at December 31 for each of the following independent situations.
a. On October 1, we collected $4,000 rent in advance, debiting Cash and crediting Unearned Rent Revenue. The tenant was paying one year's rent in advance. At December 31, we must account for the amount of rent we've earned.
b. Salary expense is $1,500 per day-Monday through Friday-and the business pays employees each Friday. This year December 31 falls on a Tuesday.
c. The unadjusted balance of the Supplies account is $3,100. Supplies on hand total S 1,200.
d. Equipment was purchased List year at a cost of $10,000. The equipment's useful life is four years. Record the year's depreciation.
e. On September 1, when we prepaid $1,200 for a two year insurance policy we debited Prepaid Insurance and credited Cash.