A The trial balance of Caribbean Vacation Tours, Inc., at December 31 of the current year includes, among other items, the following account balances:
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Debits
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Credits
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Prepaid Insurance
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$24,000
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Prepaid Rent
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24,000
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Buildings
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188,000
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Accumulated Depreciation-Buildings
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$31,600
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Salaries Expense
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200,000
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The balance in the Prepaid Insurance account is the advance premium for one year from September 1 of the current year.
The buildings are expected to last 25 years, with an expected residual value of USD 30,000.
Salaries incurred but not paid as of December 31 amount to USD 8,400.
The balance in Prepaid Rent is for a one-year period that started March 1 of the current year.
Prepare the annual year-end adjusting journal entries at December 31.