73 Measuring Business income: The Adjusting Process Journalize the adjusting entry needed at December 31 for each of the following independent situations I, when we collected $48,000 rent in advance, we debited Cash and credited Unearned Rent Revenue. The tenant for one year's rent in advance. At December 31, we must account for the amount of rent we have earned. was paying f b. Interest revenue of $2,400 has been earned but not yet received on a s60,000 note receivable held by the business c Salaries eenseis0 er daMonday therough Friday-and the business pays employees each Friday This year December 31 falls on a Wednesday d. Eguigment was purchased last year at a cost of $20,00. The equipment's useful life is five years. It will have no value after five years. Record the year's amortization. e. On September 1, when we paid $6,000 for a one-year insurance policy, we debited Prepaid Insurance and credited Cash . The business owes interest expense of $7,200 that it will pay early in the next period. & The unadjusted bualance of the Supplies account is $13,500. The total cost of supplies remaining on hand on December 31 is $4,500. Journal DATE ACCOUNT TITLES AND EXPLANATIONS POST REF DEBIT CREDIT