Consider the following independent situations at December 31:

a. On April 1, a business collected \($3,600\) rent in advance, debiting Cash and crediting Unearned Revenue. The tenant was paying one year’s rent in advance. On December 31, the business must account for the amount of rent it has earned.

b. The unadjusted balance of the Supplies account is \($2,900.\) Supplies on hand total \($1,600\).

c. The business purchased equipment on September 1 at a cost of \($40,400\) with expected useful life of four years. The residual value of the equipment is \($2,000\).

d. The business receives \($5,000\) on November 1 for 10-month service contract for the period November 1 through August 31.

e. On October 1, when the business prepaid \($2,400\) for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash.
Journalize the adjusting entry needed on December 31 for each situation assuming the company only records adjusting entries at the end of the year. Use the letters to label the journal entries.