Response to the following problem
Record the appropriate adjusting journal entries for the following situations. Assume that the accounting period ends on December 31, 2002, and that all adjusting entries are made as of that dale.
1. A physical count of office supplies indicates that $250 worth of office supplies had been used up during the accounting period.
2. Rent totaling $800 for the month of November und December hM not been paid by December 31, 2002.
3. You received a bill from the Daily Standard Nows for advertisements placed in the newspaper during the second week of November. The bill is for 5200., not to be paid until January 15, 2003.
4. On December I, 2002, you borrowed 5 1,000 from the First City Bank. The bank charges you interest at an annual rate of 10% on the obligation. and interest is not to be repaid for ninety days. Record the adjusting entry to recognize the interest expense on the loan from December 1 to December 3 I, 2002.
S. On July 1, 2002, you took out a (ire insurance policy on the business premises. At that time you recorded this insurance premium in an asset entitled Prepaid Insurance for the amount of the yearly premium of 8600. On December 31, 2002, record the adjusting entry for this asset. Remember, an asset that has been used up becomes an expense.
6. Salaries arc paid on Fridays Cor the week ending On the same day, The salaries for the week amount to $5,000, The last day of the accounting period is Wednesday. December 31. 2002. Record the adjusting entry necessary to recognize the salaries expense for the last three days of the year. The actual payment of the week's salaries will not take place until January 2, 2003.