Sierra Ski Bowl maintains its accounting records on a calendar-year basis. Using the year-end information shown below, you are to prepare all necessary adjusting jour¬

nal entries at December 31. LO8

( 1 ) A one-year fire insurance policy had been purchased and paid for in full at a total premium of $1,800 on December 1 of the current year. The payment was debited to Unexpired Insurance.

(2) On December 31, the last day of the company’s fiscal year, Sierra Ski Bowl signed an agreement to lease a truck from Olympic Rentals for the period of one year beginning January 1 at a rate of 24 cents per mile, with a minimum monthly charge of $240.

(3) Depreciation on the building for the year ended December 31 was $3,600.

(4) A portion of the land owned had been leased to an amusement park at a yearly rental of $14,400. One year’s rent had been collected in advance at the date of the lease (December 16) and credited to Unearned Rental Revenue. (Recognize onehalf month’s rent as earned.)

(5) Another portion of the land owned had been rented on December 1 to a service station operator at an annual rate of $2,880. No rent had as yet been collected from this tenant.

(6) Accrued wages payable, $5,520.

(7) Accrued interest receivable on United States government bonds owned amounts to $990 as of December 31.

(8) A six-month bank loan in the amount of $72,000 had been obtained on October 31. No interest had been paid and no interest expense recorded. Accrued'interest at December 31 amounted to $1,200.

(9) Accrued property taxes, $3,470.

Instructions From the information given above, draft the adjusting entries (includ¬

ing explanations) required at December 31.