Analyze each adjusting entry in Exercise 3-9 by showing its effects on the accounting equation— specifically, identify the accounts and amounts (including + or —) for each transaction or event.

Data from Exercise 3-9

For each of the following separate cases, prepare adjusting entries required of financial statements for the year ended December 31.
Entries can draw from the following partial chart of accounts: Cash;
Interest Receivable; Supplies; Prepaid Insurance; Equipment;
Accumulated Depreciation—Equipment; Wages Payable; Interest Payable; Unearned Revenue; Interest Revenue; Wages Expense;
Supplies Expense; Insurance Expense; Interest Expense; and Depreciation Expense—Equipment.

a. Wages of $8,000 are earned by workers but not paid as of December 31.

b. Depreciation on the company’s equipment for the year is $18,000.

c. The Supplies account had a $240 debit balance at the beginning of the year. During the year, $5,200 of supplies are purchased. A physical count of supplies at December 31 shows $440 of supplies available.

d. The Prepaid Insurance account had a $4,000 balance at the beginning of the year. An analysis of insurance policies shows that $1,200 of unexpired insurance benefits remain at December 31.

e. The company has earned (but not recorded) $1,050 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10.

f. The company has a bank loan and has incurred (but not recorded)
interest expense of $2,500 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.