1. The Lindblom Company purchases an insurance policy on 1/1/14 in the amount of $120,000. This insurance policy covers the period of 1/1/14 - 12/31/16. On the date of the purchase this is recorded as a debit to an asset account. Their year-end is 12/31/14. a. Prepare the adjusting entry that is needed at 12/31/14 in journal entry format. b. What would be wrong with the financial statements if this journal entry was not made? 2. The Osterheld Company prepaid rent on their manufacturing facility on 7/1/14, for an 18 month period, in the amount of $90,000, and recorded it in an asset account. The Osterheld Company's year-end is 12/31/14. a. Prepare the adjusting entry that is needed at 12/31/14 in journal entry format. b. What would be wrong with the financial statements if this journal entry was not made? 3. The Bianco Company sells automobile insurance to one of their clients on 1/1/15 in the amount of $100,000. This insurance covers a ten month period and the Bianco Company records it in a liability account. The year-end for the Bianco Company is 6/30/15. a. Prepare the adjusting entry that is needed at 6/30/15 in journal entry format. b. What would be wrong with the financial statements if this journal entry was not made? 4. The Levy Company owns buildings in which they rent apartments. When they have a new renter they always ask for 6 months of rent in advance. They rented to a new person on 12/1/14, and collected $60,000, which they recorded in a liability account. Their year-end is 12/31/14. a. Prepare the adjusting entry that is needed at 12/31/14 in journal entry format. b. What would be wrong with the financial statements if this journal entry was not made? 5. The Milton Company purchased supplies on 3/1/14 in the amount of $4,000. At the time of the purchase they had no remaining supplies in the closet. At 12/31/14 (their year-end). There were $500 of supplies in the closet. a. Prepare the adjusting entry that is needed at 12/31/14 in journal entry format. b. What would be wrong with the financial statements if this journal entry was not made