Hillside Apartments, Inc., adjusts and closes its books each December 31. Assume the accounts Problem 3-3 for all prior years have been properly adjusted and closed. Following are some of the company’s Prepare adjusting account balances prior to adjustment on December 31, 2012:

1. The Prepaid Insurance account balance represents the remaining cost of a four-year insurance policy dated June 30, 2010, having a total premium of $12,000.
2. The physical inventory of the office supply stockroom indicates that the supplies on hand cost $3,000.
3. The building was originally acquired on January 1, 1996, at which time management estimated that the building would last 40 years and have a salvage value of $15,000.
4, Salaries earned since the last payday but unpaid at December 31 amount to $5,000.
. Interest earned but not collected on a savings account during the year amounts to $400.
6. The Unearned Rent account arose through the prepayment of rent by a tenant in the building for 12 months beginning October 1, 2012.
Prepare the annual year-end adjusting entries indicated by the additional data.

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HILLSIDE APARTMENTS, INC. Partial Trial Balance December 31, 2012 Prepaid Insurance Debits $7,500 Credits Supplies on Hand 7,000 Buildings 255,000 Accumulated Depreciation-Buildings $96,000 Unearned Rent 2,700 Salaries Expense 69,000 Rental Revenue 277,500