The accountant for the Rayan Co. is preparing financial statements for the year ended December 31. Your review of the accounting records discloses the need for the following adjusting and reclassifying entries.

1. The account, Office Supplies, has a balance of \(\$ 2,400\). An inventory at December 31 shows \(\$ 1,100\) of supplies on hand.

2. There are two insurance accounts in the trial balance, prepaid insurance- \(\$ 6,400\) and insurance expense- \(\$ 2,800\). Unexpired insurance at the statement date is \(\$ 4,000\).

3. All rent receipts were credited to rent income. At the end of the year, \(\$ 4,000\) of rentals are unearned.

4. The allowance for uncollectibles has a credit balance of \(\$ 7,500\). An aging schedule shows estimated uncollectibles of \(\$ 14,000\).

5. The balance in accounts payable is \(\$ 122,400\). Included in this amount is \(\$ 12,400\) of advance deposits made on future purchases.

6. The ledger shows interest receivable of \(\$ 2,200\) at the beginning of the year. All interest collections have been credited to interest revenue. At December 31 of the current year, accrued interest receivable totals \(\$ 2,800\).

7. A capital expenditure of \(\$ 5,000\) was debited to repairs expense on September 1. The annual rate of depreciation on the machinery is 10 percent.

8. Accounts receivable has a net balance of \(\$ 118,400\). This balance includes accounts definitely uncollectible of \(\$ 15,000\) and customers with credit balances of \(\$ 25,000\).

9. Freight-in of \(\$ 5,000\) was debited to Freight-out.

10. Bonds payable has a balance of \(\$ 550,000\). Bonds maturing within the next year total \(\$ 50,000\).

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Journalize the adjusting and reclassifying entries. Identify the adjustments by number and the reclassifications by letter.