Miscellaneous transactions and adjusting entries. Give the journal entry to record (1) each of the following transactions as well as (2) any necessary adjusting entries on December 31, Year 3, assuming that the firm uses a calendar-year accounting period. You may omit explanations for the journal entries.

a. Gale Company rents out excess office space on October 1, Year 3. It receives on that date the annual rental of $48,000 for the period from October 1 , Year 3, to September 30, Year 4, and credits a liability account.

b. Whitley Company receives a $10,000, two-month, 6-percent note on December 1, Year 3, in full payment of an open account receivable.

c. The balance in the Prepaid Insurance account of Pierce Company on January 1, Year 3, was $500. On March 1, Year 3, the company renews its only insurance policy for another two years, beginning on that date, by paying the $6,600 two-year premium. It debits an asset account for the payment.

d. The Repair Parts Inventory account of Kelly Company showed a balance of $4,000 on January 1, Year 3. During Year 3, the firm purchases parts costing $14,900 and charges them to Retained Earnings (Repair Expense). An inventory of repair parts at the end of December reveals parts costing $3,800 on hand.

e. Roberts Company acquires with cash an office machine on July 1, Year 3, costing

$200,000. It estimates that the machine will have a 10-year life and a $20,000 residual value. It uses the straight-line depreciation method.

f. Lovejoy Company pays its property taxes for the year ending December 31, Year 3, of

$12,000 on September 1, Year 3. It debits Retained Earnings (Property Tax Expense) at the time of the payment.