Colin Mochrie Company has the following balances in selected accounts on December 31, 2008.

All the accounts have normal balances. Colin Mochrie Company debits prepayments to expense accounts when paid, and credits unearned revenues to revenue accounts when received. The fol- lowing information below has been gathered at December 31, 2008. 

1. Colin Mochrie Company paid \($2,100\) for 12 months of insurance coverage on June 1, 2008. 

2. On December 1, 2008, Colin Mochrie Company collected \($40,000\) for consulting services to be performed from December 1, 2008, through March 31, 2009. 

3. A count of supplies on December 31, 2008, indicates that supplies of \($800\) are on hand. 

Instructions 

Prepare the adjusting entries needed at December 31, 2008.

Transcribed Image Text:

Consulting Revenue $40,000 Insurance Expense 2,100 Supplies Expense 2,450