Problem
Prepare adjusting entries:
1. On April 1, 2012 Payton paid $1,200 for a two year insurance policy which began on April 1, 2012. Prepaid insurance was debited. Prepare the 12/31/12 adjusting entry.
2. On 11/1/12 Payton loaned $15,000 cash to a customer and debited Notes Recievable for that amount. It is a 6-month, 12% note which is dated 11/1/12 and matures with interest on 4/20/13. Prepare the 12/31/12 adjusted entry.
3.Payton's employees are paid total salaries of $6,000 each friday for a five-day week. Assume December 31 falls on a Wednesday in 2012 (on fridat december 26 the employees were paid $6000 for the week 12/22-26) Prepare the Adjusted entry.
4. Payton owns a truck that it rents out to customers. On November 1, 2012, Payton rented the truck to a customer for three months and recieved a cash payment of $2,700 ($900 per month) which was credited to the account Unearned rent. Prepare the 12/31/12 adjusting entry.