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For the first 4 questions, prepare Journal Entries on December 31st to record ADJUSTING ENTRIES based...

For the first 4 questions, prepare Journal Entries on December 31st to record ADJUSTING ENTRIES based on the information given.

Estimated Depreciation on the office equipment for the year is $2,000.

The prepaid insurance account has a $2400 debit balance before adjustment. An examination of insurance policies shows $600 of unexpired insurance remains.

The company has 3 employees who each earn $100/day for a 5-day work week (Monday - Friday). The employees were last paid on Friday, December 26th, and have worked full days December 29th - 31st.

On November 1, the company received 6 months rent in advance from a tenant whose rent is $700/month. The $4,200 was credited to the Unearned Rent account. NO adjusting entry was made on November 30th.

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Answer #1
Date Account title Debit credit
December 31
a Depreciation expense 2000
Accumulated depreciation-office equipment 2000
b Insurance expense 1800
Prepaid insurance 1800
[Being insurance expired :2400-600=1800]
c salaries and wage expense 900
Salaries and wage payable 900
[being salaries accrued for 3 days (29Dec -31Dec) :3 employees* 100per day *3 days =900]
d Unearned rent revenue 1400
Rent revenue 1400
[Being rent revenue earned for 2 months as of now (1Nov -31Dec) : 2*700 =1400]
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