The company uses an account called Unearned Subscription Revenue.

2. Clark Company pays its employees every Friday for a five-day workweek. Salaries of

$150,000 are earned equally throughout the week. December 31 of the current year is a Tuesday.

a. Make the adjusting entry at December 31.

b. Make the entry to pay the week’s salaries on Friday, January 3, of the next year.

Assume that all employees are paid for New Year’s Day.

31. Adjusting Entries Consider the following items for Williams Company:

1. On July 1 of the current year, Williams Company borrowed $300,000 at 9% interest. As of December 31, no interest expense has been recognized.

2. On September 1 of the current year, Williams Company rented to another company some excess space in one of its buildings. Williams Company received $24,000 cash on September 1. The rental period extends for six months, starting on September 1.

Williams Company credited the account Unearned Rent Revenue upon receipt of the rent paid in advance.

3. At the beginning of the year, Williams Company had $750 of supplies on hand. During the year, another $3,900 of supplies were purchased for cash and recorded in the asset account Office Supplies. At the end of the year, Williams Company determined that

$980 of supplies remained on hand.

4. On February 1 of the current year, Williams Company loaned Botts Company

$125,000 at 8% interest. The loan amount, plus accrued interest, will be repaid in one year.

For each of the items, make the appropriate adjusting journal entry, if any, necessary in Williams Company’s books as of December 31.