M2-2S. Assessing Financial Statement Effects of Adjustments Selected accounts of Portage Properties, a real estate management firm, are shown below as of January 3 1, before any accounts have been adjusted. All accounts have normal balances.

Prepaid insurance . . .. . .. .. .. .. .
Supplies ........... . .. . . . . .. .
Office equipment .. . .. . .... . .. .
$ 3,240 1,540 6,240 Unearned rent revenue . . ... .. . . .
Salaries expense ........... • ..
Rent revenue . . .. ..... . ... ... .
$ 5,550 2,325 13,250 Portage Properties prepares monthly financial statements. Using the following information, adjust the accounts as necessary on January 3 1 using the financial statement effects template.

a. Prepaid insurance represents a two-year premium paid on January l.

b. Supplies of $7 10 were sti ll available on January 3 1.

c. Office equipment is expected to last e ight years (or 96 months).

d. On January 1, Portage collected $5,550 for six months' rent in advance from a tenant renting space for $925 per month.

e. Salaries of $490 have been earned by employees but not yet recorded as of January 3 1.