Leeward Service Company's unadjusted trial balance on December 31, 1990, the end of its annual accounting period,
Question:
Leeward Service Company's unadjusted trial balance on December 31, 1990, the end of its annual accounting period, is as follows:
Information necessary to prepare adjusting entries is as follows:
a. Employees, who are paid \(\$ 7,500\) every two weeks, have earned \(\$ 5,250\) since the last payment. The next payment of \(\$ 7,500\) will be on January 4 .
b. Leeward rents office space to a tenant who has paid only \(\$ 450\) of the \(\$ 1,125\) rent for December. On January 12, the tenant will pay the remainder along with the rent for January.
c. An inventory of office supplies discloses \(\$ 675\) of unused supplies.
d. Premiums for insurance against injuries to employees are paid monthly. The \(\$ 450\) premium for December will be paid January 12.
e. Leeward owes \(\$ 90,000\) on a note payable that requires quarterly payments of accrued interest. The quarterly payments of \(\$ 2,700\) each are made on the 15th of January, April, July, and October.
f. An analysis of Leeward's service contracts with customers shows that \(\$ 6,300\) of the amount customers have prepaid remains unearned.
g. Leeward has a \(\$ 37,500\) note receivable on which interest of \(\$ 175\) has accrued. On January 22, the note and the total accrued interest of \(\$ 575\) will be repaid to Leeward.
h. Leeward has earned but unrecorded revenue of \(\$ 8,250\) for services provided to a customer who will pay for the work on January 24. At that time, the customer will also pay \(\$ 3,100\) for services Leeward will perform in early January.
\section*{Required}
1. Prepare adjusting journal entries.
2. Prepare closing journal entries.
3. Prepare reversing entries.
4. Prepare journal entries to record the January 1991 cash receipts and cash payments identified in the above information.
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