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(a) 1. Prepare general journal entries for the year-ended December 31, 2015 to record the following unrelated year-end adjustments. Office equipment was purchased on
(a) 1. Prepare general journal entries for the year-ended December 31, 2015 to record the following unrelated year-end adjustments. Office equipment was purchased on October 1 for $12,000. It is expected to last 10 years with no residual value. (b) The Prepaid Insurance account has a $2,500 debit balance before adjustment. An examination of insurance policies shows $900 of insurance has expired. (c) A business has three office employees who each earn $75 per day for a five-day workweek that ends on Friday. The three employees were paid on Friday, December 27, and have worked full days on Monday and Tuesday, December 30 and 31st. They will not be paid again until Friday January 3rd, 2016. (d) On November 1, 2015 a property owner received 6 months' rent in advance from a tenant whose rent is $600 per month. The $3,600 was credited to the Unearned Rent account on that date. (e) A property owner collects rent monthly from his tenants. One tenant whose rent is $750 per month has not paid his rent for December, 2015. Required: Journalize the adjustments necessary at December 31 on the following page. Label each journal entry by letter. You do not need to include an explanation.
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