Journalize the adjusting entry needed on December 31 the end of the current accounting period, for each of the following independent cases affecting Irons Corp. Include an explanation for each entry.
a. Details of Prepaid Insurance are shown in the account:

Irons prepays insurance on March 31 each year. At December 31, $900 is still prepaid.
b. Irons pays employees each Friday. The amount of the weekly payroll is $5,800 for a five-day work week. The current accounting period ends on Wednesday.
c. Irons has a note receivable. During the current year, has earned accrued interest revenue of $700 that it will collect next year.
d. The beginning balance of supplies was $2,700. During the year, Irons purchased supplies costing $6,100, and at December 31 supplies on hand total $2,200.
e. Irons is providing services for Orca Investments, and the owner of Orca paid Irons $12,100 as the annual service fee. Irons recorded this amount as Unearned Service Revenue. Irons estimates that it has earned 60% of the total fee during the current year.
f. Depreciation for the current year includes Office Furniture, $3,500, and Equipment, $5,400. Make a compoundentry.

Transcribed Image Text:

Prepaid Insurance Jan 1 Bal 500 Mar 31 3,800