8,000 Exercise 3-2 Adjusting entries LO Prepare adjusting journal entries for the year ended December 31, 2014, for each of the independent sit- uations in (a) to (f). Assume that prepaid expenses are initially recorded in asset accounts. Assume that fees collected in advance of work are initially recorded as liabilities. a. Depreciation on the company's machinery for 2014 was estimated to be $43,000. b. The Prepaid Insurance account had a $26,000 debit balance at December 31, 2014, before adjusting for the costs of any expired coverage. An analysis of the company's insurance policies sh $19,200 of unexpired insurance remaining. purchased during the year; and the December 31, 2014, count showed that $240 of supplies are on hand. ing for the costs of any expired coverage. An analysis of the company's insurance policies showed c. The Office Supplies account had a $600 debit balance on January 1, 2014: 53,100 of ffice supplies were int had a $600 debit balance on January 1, 2014; supplies were d. Two-thirds of the work for a $45,000 fee received in advance has now been performed e. The Prepaid Insurance account had an $11,200 debit balance at December 31, 2014, before adjust- that $8,600 of coverage had expired. t. Wages of S46,000 have been earned by workers but not paid as of December 31, 2014 g. Record the January 6, 2015, payment of $91,000 in wages, inclusive of the $46,000 December 31 2014, accrual in (1) above