A firm purchased a four-year insurance policy for $12.960 on July 1, 2019. The $12.960 was debited to the Prepaid Insurance account. 2. On December 1. 2019. a firm signed a contract with a local radio station for advertising that will extend over a three-year period. The firm paid $45.720 in advance and debited the amount to Prepald Advertising. Prepare end-of-month adjusting entries for each of the above situations. View transaction list Journal entry worksheet Prepare the adjusting entry for advertising. Note: Enter debits before credits. DebitCredit Transaction General Journal Clear entry Record entry View general journal On January 31, 2019, the general ledger of Palmer Company showed the following account balances. ACCOUNTS Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accum. Depr.-Equip Accounts Payable Sadie Palmer, Capital Fees Income Depreciation Exp.-Equip Insurance Expense Rent Expense Salaries Expense Supplies Expense 62,586 22,886 8,58e 7,78e 91,886 16,286 81,458 114, 580 18,180 18, 35e Addltlonel Informetlon: a. Supplies used during January totaled $5.450. b. Expired insurance totaled $1,925. c. Depreciation expense for the month was $1,700. Complete the worksheet through the Adjusted Trial Balance section. Assume that every account has the normal debit or credit balance. The worksheet covers the month of January. Worksheet (Partial) Month Ended January 31, 2019 Trial Balance Adjustments Debit Adjusted Trial Balance Credit Account Name Debit Credit Credit Debit Cash Supplies Prepaid Insurance Equipment Accumulated Depreciation- Equipment Accounts Payable Sadie Palmer, Capital Fees Income Rent Expense Salaries Expense Supplies Expense Insurance Expense Depreciation Expense-Equipment Totals Assume that a firm reports net income of $79.000 prior to making adjusting entries for the following items: expired rent, $5,900 depreciation expense, $7.100; and supplies used, $2.500. Assume that the required adjusting entries have not been made. What effect do these errors have on the reported net income? Desoto Company must make three adjusting entries on December 31, 2019. a. Supplies used, $10.400 (supplies totaling $16,800 were purchased on December 1, 2019, and debited to the Supplies account). b. Expired insurance, $7600: on December 1, 2019, the firm paid $45.600 for six months' insurance coverage in advance and debited Prepald Insurance for this amount. c. Depreciation expense for equipment, $5,200. Required Prepare the journal entries for these adjustments and post the entries to the general ledger accounts Complete this question by entering your answers in the tabs below General JournalLedger Prepare the journal entries for the above adjustments View transaction list Journal entry worksheet Prepare the adjusting entry for supplies. Note: Enter debits before credits Date General Journal Debit Credit Dec 31, 2019 Clear entry Record entry View general journal K General Journal Ledger> Desoto Company must make three adjusting entries on December 31, 2019 a. Supplies used, $10.400 (supplies totaling $16,800 were purchased on December 1, 2019, and debited to the Supplies account). b. Expired insurance. $7,600; on December 1, 2019, the firm paid $45,600 for six months' insurance coverage in advance and debited Prepald Insurance for this amount. c. Depreciation expense for equipment, $5,200. Requlred Prepare the journal entries for these adjustments and post the entries to the general ledger accounts Complete this question by entering your answers in the tabs below Ledger Journal Post the entries to the general ledger accounts. Account No. 1 Prepaid Insurance Account No. 131 Date Debit Balance Debit Balance Dec 1, 2019 Dec 01, 2019 Dec 31, 2019 Dec 31, 2019 Account No. 142 Account No. 517 Equipment Equipment Date Debit Balance Debit Dec 31, 2019 Dec 31, 2019 Account No. 521 Account No. 523 Date Debit Balance Date Debit Dec 31, 2019 Dec 31, 2019 K General Journal Ledger A total of $3,800 in supplies was purchased during the year. At the end of the year $940 of the supplies were left. The adjusting entry needed at the end of the year is: Multiple Choice deblt Supplies Expense $3,800; credit Supplies $3,800 deblt Supplies Expense $2,860, credit Supplies $2860 deblt Supplies Expense $940: credit Supplies $940 deblt Supplies $2,860, credit Supplies Expense $2,860 bought equipment o MacGyver Company on January 3 2019, for $34.600. At the time of purchase, the equipment was estimated to have a useful life of 6 years and a salvage value of $1120. Using the straight-line method, the amount of one year's depreciation is Mulaple Choice $20