Clark Motor Company faced the following situations. Journalize the adjusting entry needed at December 31, 20X6, for each situation. Consider each fact separately.
a. The business has interest expense of $9,000 that it must pay early in January 20X7.
b. Interest revenue of $3,000 has been earned but not yet received.
c. On July 1, when we collected $3,000 rent in advance, we debited Cash and credited Unearned Rent Revenue. The tenant was paying us for 2 years' rent.
d. Salary expense is $1,000 per day-Monday through Friday-and the business pays employees each Friday. This year, December 31 falls on a Tuesday.
e. The unadjusted balance of the Supplies account is $3,100. The total cost of supplies on hand is $800.