13. Prepaid Insurance $24000 for one year

14. Prepaid rent for 6 months ($2000 per month)

Adjusting entries:

15. Inventory indicated $300 in supplies have been used

16. $800 in salaries earned by Jan 31 but will not be paid until February

17. Office Equip depreciates at $200 per month

18. Received $65,000 for contract to be completed in February

New Accounts:

Prepaid insurance

Insurance Expense

Prepaid Rent

Supplies Expense

Salaries Payable

Accumulated Depreciation

Depreciation Expense

Unearned Revenue

Closing Entries:

Set up the accounting equation and record all transactions. Show that accounting equation balances after each transaction. Prepare an income statement,statement of owners equity, and a balance sheet.