A review of the ledger of Sheffield Corporation at its year end, July $31,2024,$ produces the following unadjusted data for the preparation of annual adjusting entries:

Prepaid Insurance, July $31,2024,$ unadjusted balance, $$9,600$ : The company purchased an insurance policy on December $1,2022,$ with a two$-$year term, which expires November $30,2024.$

Buildings, July $31,2024,$ unadjusted balance, $$243,000$ : The company owns a building purchased on September $1,2017,$ for $$243,000,$ with an estimated $30-$year useful life. The company uses straight$-$line depreciation.

Deferred Revenue, July $31,2024,$ unadjusted balance, $$38,250$ : The selling price of a digital magazine subscription is $$60$ for $24$ monthly issues delivered over a two$-$year period. The company had sold $900$ subscriptions on January $1,2023,$ during a special promotion.

Salaries Payable, July $31,2024,$ unadjusted balance, $$0$ : There are nine salaried employees. Salaries are paid every Monday for the previous five$-$day workweek $($Monday to Friday$).6$ employees receive a salary of $$680$ each per week, and $3$ employees earn $$730$ each per week. July $31$ is a Wednesday.

$($a$1)$ How much insurance expires per month for the building?

Insurance expires per month $

$($a$3)$ What was the original purchase price of the policy on December $1,2022?$

Original purchase price of the policy $$($a$4)$ How much should the adjusted balance in the Prepaid Insurance account be at July $31,2024?$

Adjusted balance in the Prepaid Insurance account

$

$($b$1)$ How much is annual depreciation expense for the building?

Annual depreciation expense

$

$($b$2)$ Calculate the unadjusted balance in the Accumulated Depreciation$-$Buildings account as at July $31,2024.$

Unadjusted balance in the Accumulated Depreciation $-$ Buildings account

$

$($b$3)$ How much should the adjusted balance in the Accumulated Depreciation $-$ Buildings account be at July $31,2024?$

Adjusted balance in the Accumulated Depreciation $-$ Buildings account

$$($c$1)$ How much does the company earn per month for the magazine subscriptions?

Revenue

$

$($c$3)$ How much should the adjusted balance in the Deferred Revenue account be at July $31,2024?$

Adjusted balance in the Deferred Revenue account

$

$($d$1)$ How much salary was paid on the last payday, Monday, July $29?$

Salary

$($d$2)$ How much, if any, salary is owed to the employees on July $31?$

Salary

$$($d$3)$ How much salary will be paid on the next payday, Monday, August $5?$

Salary $$

$($e$)$ Prepare the adjusting journal entries required for each of the above four items at July $31,2024.($Hint: Use the account Subscription Revenue for item $($c$).)($Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round all amounts to the nearest dollar. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.$)$

No$.$ Date Account Titles and Explanation

July $31$

July $31$

July $31$

July $31$

Debit

$$

$$

$$

$$

$$

$$

$$Hi everyone,

I would like to make some clarifications of Assignment #$2,$ which is due this Sunday $($June $2)$ at $11$:$59$pm$.$

The second transaction of Assignment #$2$ Question $1$ involves the acquisition of delivery drone partly through debt financing. It is from your textbook Problem $4\mathrm{.}2$A$.$

When calculating the depreciation expense, you should use the purchase cost only $($ $$126,000$ in this case$).$ The $5\%$ borrowing interest should not be included as depreciation expense. Instead, borrowing cost should be directlyFecorded as interest expense. In addition, since the delivery drone was acquired on July $1($middle of the year$),$ we should only record half of the annual depreciation amount for the first year.

The first transaction of Assignment #$2$ Question $2$ is quite challenging. It is fr$$m your textbook Problem $4\mathrm{.}6$A$.$ Following are the detailed explanations with regard to the amount of the adjustment: After $8$ months of insurance coverage the balance in the Prepaid Insurance account is $$9,440.$ The $9,440$ unadjusted balance represent prepaid insurance at the beginning of current year $($August $1,2023)$