Among other items, the trial balance of Filmblaster, Inc., a movie rental company, at December 31 of the current year includes the following account balances:

Examination of the records shows that adjustments should be made for the following items:

a. Of the prepaid insurance in the trial balance, \(\$ 4,000\) is for coverage during the months after December 31 of the current year.

b. The balance in the Prepaid Rent account is for a 12 -month period that started October 1 of the current year.

c. \(\$ 300\) of interest has been earned but not received.

d. Supplies used during the year amount to \(\$ 1,800\).
Prepare the annual year-end adjusting journal entries at December 31.

Transcribed Image Text:

Debits Prepaid Insurance $10,000 Prepaid Rent. 14,400 Supplies on Hand 2,800