Common adjusting journal entries (Learning Objective 2) 15–20 min.

Journalize the adjusting entry needed at March 31, the fiscal year-end, for each of the following independent situations. No other adjusting entries have been made for the year.

a. On February 1, we collected $6,600 rent in advance. We debited Cash and credited Unearned Rent Revenue. The tenant was paying six months’ rent in advance.

b. The business holds a $5,000 note receivable. Interest revenue of $520 has been earned on the note but not yet received.

c. Salaries expense is $3,100 per day, Monday through Friday, and the business pays employees each Friday. This year, March 31 falls on a Thursday.

d. The unadjusted balance of the Supplies account is $1,000. Supplies on hand total

$700.

e. Equipment was purchased two years ago at a cost of $4,000. The equipment’s useful life is five years.

f. On November 1, when $936 was paid for a one-year insurance policy, Prepaid Insurance was debited and Cash was credited.

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