Adjusting Entries
Response to the following problem:
The information presented below is for Susan's Sweet Shop.
a. Interest of $9,600 is payable for September 2009 through December 2009 on a 9%, $320,000 loan and has not been recorded.
b. Rent of $93,500 was credited to an unearned revenue account when received. Of this amount, $42,250 is still unearned at year-end.
c. Interest revenue of $9,450 from a $105,000 note has been earned but not collected or recorded.
d. The expired portion of an insurance policy is $4,960. Prepaid Insurance was originally debited.
e. Rent of $30,000 was paid for six months in advance on November 15, 2009, and debited to Prepaid Rent.
f. Salaries for the period December 26, 2009, to December 31, 2009, amounted to $15,300 and have not been recorded or paid. (Ignore payroll taxes.)
Required:
Prepare the adjusting entries that should be made on December 31, 2009. (Omit explanations.)