1. At December 31, the unadjusted trial balance of H&R Tacks reports Equipment of $26,500 and zero balances in Accumulated DepreciationEquipment and Depreciation Expense. Depreciation for the period is estimated to be $5,300.

Prepare the adjusting journal entry on December 31.

Prepare the T-accounts for each account, enter the unadjusted balances, post the adjusting journal entry, and report the adjusted balance.

2. At December 31, the unadjusted trial balance of H&R Tacks reports Prepaid Insurance of $6,240 and Insurance Expense of $0. The insurance was purchased on July 1 and provides coverage for 24 months.

Prepare the adjusting journal entry on December 31

Prepare the T-accounts for each account, enter the unadjusted balances, post the adjusting journal entry, and report the adjusted balance.