E3-7 Journalize the adjusting entry needed at December 31 for each of the following independent situations.

a. On July 1, when we collected $10,000 rent in advance, we debited Cash and credited Unearned Rent Revenue. The tenant was paying for one year's rent in advance.

b. The business owes interest expense of $400, which it will pay early in the next period.

c. Interest revenue of $700 has been earned but not yet received. The business holds a $20,000 note receivable.

d. Salary expense is $1.500 per day-Monday through Friday-and the business pays employees each Friday. This year December 31 falls on a Wednesday.

e. The unadjusted balance of the Supplies account is $3,100. The cost of supplies on hand is $1,200.

f. Equipment was purchased last year at a cost of $10,000. The equipment's useful life is four years. Record the year's depreciation. g. On September 1, when we prepaid $1.200 for a two-year insurance policy, we debited Prepaid Insurance and credited Cash.